Farmer Sentiment Plummets as Production Costs Skyrocket
The Purdue University-CME Group Ag Economy Barometer plummeted in May to a reading of just 99, the weakest reading since April 2020. The May 2022 barometer reading marked just the ninth time since data collection began in fall 2015 that the overall measure of farmer sentiment fell below 100.
Agricultural producers’ perceptions regarding current conditions on their farms, as well as their future expectations, both weakened this month. The Index of Current Conditions fell 26 points to a reading of 94, while the Index of Future Expectations declined 21 points to 101 in May. Notably, this month saw a rise in the percentage of respondents who feel their farm is worse off financially now than a year earlier, an indication that escalating production costs are troubling producers.
The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from May 16th-20th, 2022.
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