Farmers’ confidence in the agriculture economy is at an all-time low. At least it’s a low in the five years that the DTN/The Progressive Farmer Agriculture Confidence Index has been taken. The index has shifted from an optimistic rating of 103.4 in December, to a pessimistic level of 98.8. A value of 100 is considered neutral. Values above 100 indicate optimism, and values below signify pessimism.
“When you compare the two core components of that, input prices and farm income, farmers are facing challenges on both sides of the equation this year,” said Katie Micik, markets editor for DTN and The Progressive Farmer.
The index is determined through a survey of 500 crop and livestock producers measuring their sentiments on the agricultural sector. The latest index indicates that both seem to be less than optimistic, said Micik.
“There’s pessimism in crop producers – it’s a little bit stronger than it is in livestock – it’s also much more focused on the here and now,” she said, “whereas livestock producers, when I say they’re pessimistic, it’s really because their prospects a year from now aren’t as great. They see their incomes falling next year.”
The Agriculture Confidence Index is conducted three times each year, before planting, prior to harvest and after harvest. It was begun in April 2010.
By Tom Steever
Source: Brownfield Ag News for America