According to the latest Purdue University/CME Group Ag Economy Barometer, farmers are worried about the impact of COVID-19 on profitability. “Seventy-four percent of respondents said they were either fairly worried or very worried about the coronavirus impact on their farm in 2020,” said Jim Mintert, director, Purdue University Center for Commercial Agriculture. Forty-percent of respondents are expecting a worse year financially compared to 2019. Mintert said there are still lots of unknowns ahead. “The ag markets are so heavily intertwined with the energy markets. There’s a reduction in fuel demand across the world, driving gasoline prices down and having a negative impact on operating margins for ethanol plants.” Overall, the March barometer showed a decline of 47 points to a total reading of 121. This is the largest one-month drop in sentiment recorded for the survey.
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