Ag Economy Barometer: Optimism Grows, Trade Concerns Linger

This month’s Ag Economy Barometer report showed a continued improvement in farmer sentiment, but will that positivity translate into more spending and investing? “People have a more optimistic view but, does that translate to changes in behavior? We have some evidence based on history that changes in sentiment can impact behavior, but it remains to be seen how that plays out going forward. Was this a one-month blip in sentiment or does it become a longer-term shift?” Despite the positive sentiment, the threat of a potential trade war struck a sour note with respondents. “42% of the respondents in the survey said they think a trade war is either likely or very likely. So, the trade situation, which is so important to agriculture, is clearly on producers’ minds.”