Farmer sentiment fell in August amid the downtown in commodity markets and uncertainty with exports for some commodities, according to the monthly Purdue University-CME Group Ag Economy Barometer.
The survey’s overall measure of farmer outlook fell 10 points to 125, and the index of future expectations dropped even more sharply, falling 16 points to 123, the lowest reading for that measure since September 2024.
“Sentiment differed widely among producers depending on whether their farm is primarily a crop operation or a livestock operation. Responses from crop producers this month were much less optimistic than those from livestock producers, which indicates the disparity in profitability between crop and livestock enterprises,” according to a summary of the August survey.
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Beef producers are seeing record profitability even as other farmers are being squeezed by lower commodity prices and strong input prices.
The survey was conducted Aug. 11-15. USDA released a report Aug. 12 projecting that farmers will produce a record 16.7 billion bushels of corn this fall. The department also sharply lowered its forecast for the average corn price, which if realized could trigger significantly higher commodity program payments. The projected price for soybeans of $10.10 a bushel also is under the cost of production for many growers.
The survey’s farm financial performance index, a measure of how farmers see the status of their own operations, was under 100 for the second month in a row at 91.
“Crop prices that are below many farms’ total cost of production help explain why more farmers expect weaker incomes in the upcoming year than expect incomes to rise,” the survey summary says.
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