Source:Chris Scott, MEATINGPLACE, 9/7/18


Agricultural producers were more optimistic about their financial prospects last month as USDA announced federal subsidies aimed at offsetting the potential negative impact from trade tariffs.

Researchers at Purdue University’s Center for Commercial Agriculture noted an uptick in the sentiments of ag producers in a survey conducted just after USDA outlined general terms of the $12 billion aid package for those affected by the tariffs. The Purdue Ag Economy Barometer hit 129, after falling to 117 in July, although the most recent level remains well below the 141 reading in May and the 143 posted in June.

Optimism, however, was more muted when ag producers were asked how they feel the relief plan addresses their concerns about the impact of tariffs on their incomes. Nearly half of the respondents say the relief plan will have no affect on their income and another 43 percent believe the package will have “somewhat” of an effect on income. Just 4 percent said the relief plan will “completely” address their concerns and 7 percent were “uncertain” about the overall effect, the researchers reported.

More producers believe that now is a good time to make large investments in their operations, with 26 percent agreeing with the concept, compared with 20 percent in July. The percentage of producers who believe now is a bad time to make investments fell to 65 percent in August from 73 percent in July, the survey reported.

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