The August Purdue University/CME Group Ag Economy Barometer dipped 13 points from July to a reading of 100.
That drop echoes levels seen from fall 2015 through winter 2016 during the early stages of a significant downturn in the U.S. farm economy.
The Index of Current Conditions also dropped 17 points to 83, while the Index of Future Expectations decreased by 11 points to 108.
Weakening farm income weighed heavily on farmers’ sentiment as the outlook for a bountiful fall harvest was more than offset by dropping crop prices.
This month’s decline provides a signal that farmers are concerned about the possibility of extended weakness in farm incomes, similar to what took place from 2015 to 2019.
The August survey results indicate a shift among farmers’ primary concerns, with 30% of respondents identifying lower commodity prices as their primary concern, compared to 33% who cited high input costs.
