Ag producer sentiment took a jump up in June as producers seemed to be more optimistic about the future of the agricultural economy. The Purdue University/CME Group Ag Economy Barometer increased its index reading to 126, a jump of 25 points from May. The index of Current Conditions saw a modest 13-point increase from May, coming in at 97 on the index scale. The Index of Future Expectations jumped 33 points to a reading of 141 in June.
Producers in the survey were asked if the Market Facilitation Program announcement affected their decisions to take or not take prevented planting payment this year. Ten percent of corn and soybean producers said the announcement did impact their decision making.
One of the biggest question marks in 2019 has to do with how many acres will be involved in prevented planting. Nearly one-third of the respondents who farm corn and soybeans say they intended to take prevented planting payments on some of their corn acres. Of those who intended to take a prevented planting payment, just over half of the respondents took prevent plant on more than 15 percent of intended corn acreage.
Finally, farmers seemed more optimistic in the month of June about an eventual resolution to the trade dispute with China.