Industry Insights

November update

Producer optimism soars, but economists remain unconvinced.

Producer sentiment rebounded in October from the previous month’s eight-year lows. The Purdue University/CME Group Ag Economy Barometer, a measure of producer sentiment, rose by 27 points. This increase was driven by optimism about the agricultural economy, largely due to expectations of U.S. election outcomes. (Producers were surveyed before the elections.) However, over 75% of agricultural economists in the Farm Journal’s Ag Economists’ Monthly Monitor believe the ag economy is nearing a recession, with more than half of respondents stating it is already in one. Sentiment varies greatly by commodity: grain and row crop producers face falling prices and tight balance sheets, while cattle operations and dairies are benefiting from lower feed costs.

Industry insights

AgWest Farm Credit’s industry research team covers the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. The market updates are based on various sources, and include boots-on-the-ground insights from AgWest’s own lending, appraisal and crop insurance teams across the West. For industry specific information, news and upcoming events, check out our industry pages below.