The Ag Economy Barometer rebounded in June to a reading of 126, 25 points higher than a month earlier.
The barometer is based upon a nationwide monthly survey of 400 U.S. agricultural producers. Both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, improved compared to a month earlier.
The largest increase was in the Future Expectations Index, which rose 33 points compared to a 13-point improvement in the Current Conditions Index.
The rise in the Index of Future Expectations effectively wiped out the two-month decline in future expectations that took place during April and May, pushing the index back up to the level observed in March.
|Figure 1. Purdue/CME Group Ag Economy Barometer, October 2015-June 2019.|
This was in contrast to agricultural producers’ sentiment regarding current economic conditions which, although improved from a month earlier, remained well below that of earlier this spring. The June reading of the Index of Current Conditions stood at 97, which was still 23 points lower than in March.
|Figure 2. Indices of Current Conditions and Future Expectations, October 2015-June 2019.|
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