The Purdue/CME Group Ag Economy Barometer for September 2019 shows that farmer sentiments about current and future economic conditions differ decidedly.

According to Purdue researchers, the Ag Economy Barometer dipped slightly in September to a reading of 121, down just 3 points from August, when the index stood at 124. “Although the barometer’s decline was small, there was a relatively large sentiment shift among ag producers as they were noticeably more pessimistic about current conditions on their farms and in the U.S. ag economy, but somewhat more optimistic about future economic conditions, both compared to one month earlier,” says Purdue’s James Mintert and Michael Langemeier.

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The Index of Current Conditions declined from a reading of 122 in August to 100 in September. This was in contrast to the Index of Future Expectations, which actually rose 6 points compared to August, with a September reading of 131. The Ag Economy Barometer is based upon results from a nationwide telephone survey of 400 U.S. crop and livestock producers. This month’s survey was conducted from Sept. 9-13, 2019.

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Concerns about current economic conditions on their farms spilled over into producers’ perspective on making large investments in their farming operations. The Farm Capital Investment Index, which is based upon a question posed to farmers each month regarding the advisability of making large investments in their farming operations in items such as machinery or buildings, declined for the second month in a row to 47. This was…