Purdue’s Ag Barometer Keeps Tabs on Farm Economy
In 2016, the Purdue University Department of Agriculture released its new Ag Barometer – a monthly reporting tool that keeps a close eye the overall sentiment and confidence in the Agricultural market.
The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy, further strengthening Purdue’s position as both a national and global leader in the world of agriculture. On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value, the data is provided from a monthly survey of over 400 producers and quarterly from over 100 agriculture thought leaders and agribusiness professionals.
“The Purdue – CME Group Ag Economy Barometer is a great tool in helping us tell the story of the business climate agricultural producers are facing,” said David Widmar, a Senior Research Associate at Purdue and Co-founder of AgEconomists.com.
Officially launched in May 2016, the team began collecting data back in October of 2015 and believes the Ag Economy Barometer will be a very valuable tool for the agricultural industry as a whole.
Many farmers and ag professionals might be familar with other ag surveys (DTN has one, for example), but these have different focuses. The new Ag Barometer allows for adjusments to questions and content every month, thus a more accurate reflection and measure of the situations that producers are facing in today’s challenging agricultural climate.
HIGHLIGHTS FROM THE APRIL AG BAROMETER
“From the April data (released early May) we observed an overall uptick in producer sentiment. A rally in grain prices and (to that point) favorable weather conditions were helpful. With that said, the overall ag economy outlook is still bleak with more than 70% of ag producers expecting the next year to be “bad times” financially for producers. So while the outlook improved in the short-run, there are still long-run shadows lingering in the ag economy.” – David Widmar, Senior Research Associate of the Ag Barometer
With over 15 of Purdue’s top Ag Economists, Deans, Professors and more contributing to the the barometer, the industry is looking forward to seeing how the variety of factors that influence the market take shape.