The Purdue University Ag Economy Barometer for June, produced in conjunction with the CME Group reversed the sharp decline in May and demonstrated a more positive sentiment among the agricultural community.  The Barometer Index climbed 17 points to 121, mainly due to a 25-point increase in the Index of Future Expectations that reached 123 points.  In contrast, the Future Expectations Improvement Index was unchanged from May.  The Farm Financial Conditions, Short-Term and Long-Term Farmland Value Expectations and Farm Capital Investment Indices improved in June compared to May.

In surveys as part of the monthly exercise, a third of respondents consider it “unlikely” that Congress will overturn California Proposition #12 in the 2023 Farm Bill, with one quarter considering that legislative intervention is “somewhat likely” on the issue.  Row crop farmers are focused on the Crop Insurance title as the most important part of the Farm Bill expecting a raise in corn and soybean reference prices in the Commodity title.

Twenty percent of the respondents considered that their farm operations will be “better off” financially in May 2024 compared to 13 percent surveyed in May 2023.  In contrast, 32 percent were of the opinion that their farm operations would be “worse off” financially, although this cohort was down from 44 percent in May.

The proportion of respondents expecting “good times” for U. S. agriculture over a five-year period rose from 8 percent in May to 33 percent in June but was offset by 41 percent anticipating, “bad times” over the extended period.