Ag Producer Confidence
Ag Producer Confidence Reaches All-Time Low
Agribusinesses Are Positive, but Confidence Is Eroding
Crop and livestock producers’ confidence about the direction of the agriculture economy has reached a historic low, according to the latest DTN/The Progressive Farmer Agriculture Confidence Index Markets Editor Katie Micik, director of the confidence index (ACI).
Since the last ACI survey in December, producer confidence has shifted from an optimistic rating of 103.4 to a pessimistic level of 98.8. The value of 100 is considered neutral. Values above 100 indicate optimism, whereas values below signify pessimism.
The confidence index, which surveyed 500 crop and livestock producers from Feb. 18 to March 2, measures the sentiments of crop and livestock producers on their overall agriculture sector impressions. The ACI is conducted three times each year – before planting, prior to harvest and after harvest. Producers also rate current and long-term input prices and net farm income to gauge their attitudes toward the present situation and future expectations.
“It’s the most pessimistic producer confidence reading yet,” said DTN Markets Editor Katie Micik, director of the confidence index. “The latest producer confidence rating marks the second time in the last three ACI surveys that producers’ confidence levels were pessimistic.”
A year ago, producer confidence stood at 106.9 then fell 99.8 in August 2014 for the first pessimistic rating since DTN/The Progressive Farmer began the ACI survey in April 2010.
