Producer sentiment dropped to a three-year low in the latest Purdue University – CME Group Ag Economy Barometer. For April, the barometer reads 96. That’s the first time the barometer has fallen below 100 since October 2016. According to Purdue University Center for Commercial Agriculture Director Jim Mintert, the sharp decline in commodity prices is a major driver. “In much of the country, there are issues with the ability to deliver market hogs and market-ready cattle,” said Mintert. “I don’t think the issue is as severe on the cattle side as it is on the hog side. When you put that together, farmers are looking at sharp declines in revenue.” Some farmers came into 2020 with a conservative perspective on capital expenditures. “Farmers have been working hard to preserve working capital. That’s going to be key in this kind of an environment. People are pulling back,” said Mintert. Check out the latest barometer reading.
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