Optimism Improving, But NAFTA Concerns Remain

The Purdue/CME Group Ag Economy Barometer moved higher again in February. At 140 points, producer sentiment, which is based on a monthly survey of 400 agricultural producers from across the country, reached its second-highest level in more than two years. Sentiment is also higher for the second-consecutive month, providing a strong 14-point boost to the index compared to December 2017. As part of the monthly survey, producers were asked about trade. Farmers indicated they remain optimistic regarding trade but note uncertainty regarding the future of the North American Free Trade Agreement. Despite that uncertainty, the majority of producers expect exports of agricultural products to increase, or hold steady, over the next five years. Finally, over two-thirds of producers responding to the February survey expect soybeans to be more profitable in 2018 than corn. However, only ten percent of producers said they plan to increase their soybean acreage compared to last year.