Producer sentiment fell to its weakest reading since July 2022, as the Purdue University-CME Group Ag Economy Barometer Index declined 19 points to 104 in May. This month’s weak sentiment reading was fueled by declines in both of the barometer’s sub-indices.
The Index of Future Expectations declined 22 points to 98, while the Index of Current Conditions fell 13 points below a month earlier to 116. Crop price weakness helped trigger the sentiment decline. Eastern Corn Belt fall delivery bids for corn fell over $0.50 per bushel, down ten percent, and soybean bids declined over $1.00 per bushel, down eight percent.
Nearly half of producers feel that the most important aspect of new Farm Bill legislation will be the Crop Insurance Title, while a fourth of producers say the Commodity Title will be the most important. Almost half of corn and soybean producers expect Congress to raise PLC reference prices for both crops when a new Farm Bill becomes law.