Livestock Sector Optimism Fuels a Modest Rise in Ā鶹appĀ Sentiment
Ā鶹appĀ sentimentĀ improved modestly in October, as theĀ Purdue University/CME Group Ag Economy BarometerĀ rose three points to a reading of 129. The boost came primarily from stronger confidence among livestock producers, who continue to benefit from record-high profitability in the beef sector.
While optimism grew in the Index of Current Conditions, crop producers remain cautious, citing tighter margins and weaker profit expectations. The Index of Future Expectations held steady, suggesting farmers remain uncertain about what lies ahead. This monthās Ag Economy Barometer report highlights how diverging trends between livestock and crop sectors are shaping overall sentimentĀ across U.S. agriculture.
For October, politics emerged as a frequent topic of discussion, likely influenced by the elections. Many producers expressed worries about potential policy changes impacting their farms and the agricultural economy, with regulation, environment and taxes featured prominently alongside price concerns.
When specifically asked about their worries for the upcoming year, respondents continued to point to higher input costs and lower output prices as their primary concerns. The trend of producersā decreasing concern over interest rates continued this month, with only 15% citing it as a top worry in October, down from 26% in late 2023.
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