There’s a new tool in the toolbox from CME Group and Purdue University that’s designed to measure the confidence farmers and ranchers have in the health of the U.S. agricultural economy – the Purdue/CME Group Ag Economy Barometer. On May 3, 2016, CME Group announced its partnership with the Purdue University Center for Commercial Agriculture to introduce the Ag Economy Barometer.

Each month, this new economic indicator provides a sense of the agricultural economy’s health with an index value based on a survey of 400 agricultural producers on economic sentiment. Also, Purdue will bring its research and agricultural economics expertise to measure producers' expectations of key farm economy drivers such as farm profitability; farmland prices; capital expenditures; row crop, livestock and dairy prices; and seasonal drivers such as seed, fertilizer, and feed ingredient prices. “We’re working with Purdue to provide this new tool to agricultural customers, agribusiness thought leaders, academics, members of the press and other market participants as we believe it will provide an essential resource for monitoring the health of the food industry and vital insight into the global economy,” said Chris Grams, CME Group Senior Director of Corporate Communications. “As NAFB broadcasters have their fingers on the pulse of the U.S. farm economy, we think the Ag Barometer will be a vital tool for their ongoing coverage of the industry.”

The first set of Ag Economy Barometer results were published on May 3, following a six-month base research period from October 2015 to March 2016. April results showed that agricultural sentiment of U.S. producers increased to 106 – an improvement in food producer sentiment compared to the base period value of 100. Additional details on survey methodology and baseline research are available on the Ag Economy Barometer site. The Purdue/CME Group Ag Economy Barometer index value will be published on the first Tuesday of every month. For more information or to receive Ag Economy Barometer results each month, visit www.purdue.edu/agbarometer. Chris is an Allied Industry member of NAFB and serves as a member of the NAFB Foundation Board of Directors.