WEST LAFAYETTE — Farmer sentiment fell to one of the
lowest levels in nearly four years in April, as the bleak agricultural
economy hangs over another planting season.
The The Purdue University/CME Group Ag Economy Barometer slipped 18 points,
marking the fourth largest one-month drop since the survey began in
October 2015.slipped 18 points, marking the
fourth largest one-month drop since the survey began in October 2015.
Growing
pessimism about current and long-range economic conditions drove the
results, which are based on a monthly survey of 400 agricultural
producers nationwide. The ongoing trade dispute with China, sluggish
commodity prices and lower farm values have roiled the ag landscape in
recent years.
“As
you look at it, that suggests the percentage of producers expecting
lower farmland values is getting close to the levels we observed late
last summer and early last fall when producers perspective was
relatively negative,” Purdue ag economist Jim Mintert said in a video
summarizing the results.
There was a modest change in attitude about the impact of the trade dispute on U.S. agriculture.
Of
the producers surveyed, 71 percent expect a favorable resolution
stateside, down seven points from March. But more farmers say the
dispute won’t likely be settled by July 1.
On Tuesday,
China agreed to resume negotiations after the White House accused the
country of reneging on the agreement by changing the text of the deal
being crafted. President Donald Trump had threatened higher tariffs as a
result.
Amid
the uncertainty, few farmers are willing to make large investments in
their operations. Nearly three-quarters of farmers surveyed said it was a
“good time” for substantial investments.
Locally, the
wet spring is also putting a strain on farmers. Just 3% of Indiana corn
has been planted so far this season, according to the U.S. Department of
Agriculture, far below average for early May.
Only 1% of Indiana soybeans are in the ground.
Long-range
forecasts call for drier weather by mid-May, giving local farmers a
window to catch up, said Mike Carrell, manager of Ceres Solutions in
Wingate.
“In this part of the county, nothing has been planted,” Carrell said.