New tool monitors health of farm economy

Tuesday, May 3rd 2016

Farmers and the rest of the agricultural community have a new tool to measure the health of the national farm economy. Based on surveys of 400 “large agricultural producers” and combined with economic data on farmland values, input costs, and crop and livestock prices, the Purdue/CME Group Ag Economy Barometer is designed to provide a regular monthly snapshot of the national farm economy and producers’ attitudes toward it. According to Jim Mintert, director of Purdue’s Center for Commercial Agriculture, the barometer is based on the survey’s results from late 2015 and early 2016, with the base equaling 100. A reading above 100 means that producers are feeling more optimistic than they were during that time frame; a reading lower than 100 would indicate producers are feeling more pessimistic than they did during winter 2015 to spring 2016. According to the April results released Tuesday, producers are feeling more optimistic about the state of the agricultural economy, with a reading of 106, than they were earlier this year. The next Purdue/CME Group Ag Economy Barometer will be released Tuesday, June 7. The new index will be released on the first Tuesday of each month.