The latest Purdue University-CME Group Ag Economy Barometer (AEB) Index showed that farmer sentiment improved to 126 points in July from 113 points in June. This is the first month of improvement since March. However, when asked about risk management educational needs, marketing was the top response.
Farmer sentiment amid high input costs
Additionally, the Index of Current Conditions increased by 20 points, and the Index of Future Expectations rose by 11 points. 46 percent of respondents listed high input costs as their biggest concern, and 30 percent said that crop or livestock prices were their biggest challenge to success in the next five to ten years.
Noticeably, improvement in sentiment followed increased prices of corn and soybeans from mid-June to mid-July. However, commodity prices are relatively low when viewed from a larger standpoint, and producers currently face tighter farm margins today than ever before.
Farmers seek marketing education
Also included in July’s survey, farmers were asked about their most crucial risk management education needs. The most common response was marketing, with more than double the response of the next highest need at 44 percent. Financial risk followed at 17 percent and strategic risk at 14 percent.
Additionally, 30 percent of producers identified crop and livestock prices as their biggest challenge facing their operation over the next five to ten years.
High input costs continue to limit expectations for better farm financial performance, while crop and livestock prices were identified as the leading long-term challenge.
Trader PhD aims to fill education gap
Trader PhD Ag Marketing gives farmers actionable insights to make informed marketing decisions. Trader PhD brings over 30 years of experience supporting farmers and ranchers and helping them navigate market changes. We use that expertise to offer valuable strategic insights that give our listeners a competitive edge.
Education is a significant portion of Trader PhD’s news and advisory services. Special reports and educational resources help keep producers informed about market phenomena and global trends to better understand what can affect crop prices.
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