The Purdue/CME Group Ag Economy Barometer turned lower in October, dropping to an index reading of 92, the lowest reading since last March.
That’s also the lowest index since data collection began back in October of 2015.
Producers’ expectations of the long-term health of the ag economy dove in October, with the Index of Future Expectations dropping to 95 in October, down from 109 in September and the July peak of 121.
Producers responding to the survey are very pessimistic about the ag economy over the next year.
79 percent of respondents expect tough financial times over the next year, an 11-point jump from the September survey.
Price expectations for corn and soybean between now and next year are mixed.
One-third of producers expect corn prices to exceed $4 per bushel between now and July 2017.
30 percent of respondents expect July 2017 soybean prices to exceed $10 per bushel.
However, 27 percent of respondents expect corn prices below $3 per bushel and 25 percent expect soybean prices below $8 per bushel.
Producers also plan to make management changes next year because of the economy.
46 percent of respondents plan to lower fertilizer rates and 35 percent plan to adjust trait packages in their seed varieties.
