Producers were more optimistic about their farming operations in June after a beneficial spring planting season and the implementation of the Coronavirus Food Assistance Program.
The Purdue University/CME Group Ag Economy Barometer, a reading of producer sentiment based on a survey of 400 producers, was up 14 points in June to a reading of 117.
“This month’s survey was conducted after the USDA announced details regarding the Coronavirus Food Assistance Program (CFAP),” James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, said in a release. “A more favorable spring planting season combined with assistance from CFAP help explain this month’s improvement in farmer sentiment, yet a majority of producers believe additional economic assistance will be needed in 2020.”
The Index of Current Conditions had a reading of 126, up 19% from May. The Index of Future Expectations was at 126, which had increased by 12% from the previous month.
Fewer producers are worried about the impact the virus will have on their farms’ profitability than last month. Some 64% of farmers said they were “very worried” or “fairly worried,” a 7% decrease from May.
CFAP seems to be helping producers as well. Just over one-fourth of respondents said they thought CFAP payments didn’t relieve their concerns “at all,” while 60% of farmers responded that it “somewhat” or “completely” relieved their concerns. But 64% of respondents think Congress will need to pass another economic relief bill for farmers.
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