January Ag Economy Barometer Drops Slightly

The January Purdue University/CME Group Ag Economy Barometer dropped seven points from the December 2020 survey to a reading of 167. Most of the decline was in the Index of Future Expectations. Survey results suggest the decline is driven by concerns about policies that could impact U.S. agriculture, like environmental policies, higher taxes and the on-going trade dispute with China. On the flip side, farmers are more optimistic in the short-term about their farm’s financial performance. One-third of survey respondents expect better financial performance this year than 2020 and farmers think now is a good time to make large investments in farming operations.