The latest Purdue/CME Group Ag Economy Barometer is out, showing a steady, positive farmer sentiment and a clear desire to rework the North American Free Trade Agreement (NAFTA).
The Trump administration has signaled multiple times it wants to renegotiate key trade agreements, including NAFTA, and farmers appear to be eager to rework the trade agreement.
The Ag Economy Barometer added a NAFTA question to its May 2017 survey and a resounding 83 percent majority of respondents support renegotiation efforts. Of the respondents, 63 percent say such a move will be beneficial for the U.S. economy and 61 percent say it will be specifically beneficial for agriculture.
Optimism over farmland values is also slowly creeping upward. For May 2017, 19 percent of respondents think farmland values will be higher a year from now. That’s the biggest positive response since July 2016 and the second highest rate since the question was first posted in November 2015.
About 40 percent of respondents say they expect farmland prices in their area will be higher in five years than they are today.
The farmer sentiment index has hovered near 130 for five of the last six months and remains considerably stronger than both last fall and a year ago.
The Barometer is based on a monthly survey of 400 farmers and ranchers from across the country.