The potential for rising input prices and changing taxes pushed the Purdue University/CME Group Ag Economy Barometer down 20 points in May. The reading of 158 is the lowest survey reading since September 2020. Producers were less optimistic about both current conditions and the future of the agricultural economy. The Index of Current Conditions dropped 17 points to a reading of 178, and the Index of Future Expectations fell 20 points to a reading of 149.
The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted May 10-14.
Producers expressed less optimism about their farm’s financial performance this month. The Farm Financial Performance Index declined to 126 from a record high 138 in April. Although May’s index was 12 points lower than a month earlier, it was still the second highest reading since the financial performance question was first posed in spring 2018, suggesting strong crop prices continue to support farm incomes.