DTN | Field 2 Field

Rain. Finally. Last weekend saw at least some rain in parts of farm country. Had a chance to talk with John Baranick (rhymes with mechanic), ag meteorologist for DTN, who lives just down 169 from me in Jordan, Minnesota. He says while the rain benefitted the parts of rural America stuck in a drought, other areas didn’t need a lot of rainfall.

“It wasn’t just here in southern Minnesota. We also saw that it was even heavier south of the border in Iowa, with a lot more four-to-six inch amounts there. Very helpful for some areas, but not a lot of those areas needed it. It also extended down through southern Wisconsin and into Northern Illinois. A lot of those crops, again, didn’t really need it, but it’s definitely helpful wherever it hit. And that front is starting to come through the eastern half of the Corn Belt. Again, a lot of these areas are doing much better than we are out here in the West, but Illinois, Indiana, and Ohio are all seeing bouts of rain this week. They’ve had some flooding in some of these areas, but the rainfall that’s gone through is mostly favorable. It’s just those Western states that just haven’t.”

The Dakotas saw mixed results from the weekend rain.

“South Dakota got some pretty good rainfall. The eastern half of it did, but the western half didn’t, really. North Dakota has kind of been missing out on a bunch of rain lately, although their soil moisture, for the most part, and the crop conditions are still pretty good.”

The Plains States are still struggling with drought…tape

“It’s the states of Nebraska, Kansas, kind of northern Missouri that have missed out on a lot of the rainfall even with these fronts coming through, and they’ve had a lot hotter. Temperatures have been up near or eclipsing 100 degrees very consistently all summer long, so the heat has been putting on a whole lot of stress for those areas.”

There may finally be some cooler air on the way into the Plains next week and may bring at least a little rain with that front…tape

“We’re seeing late next week, maybe mid-to-late next week, a push a cooler air move through and that’s gonna come with a bit of showers too, so it’s not a whole lot of rainfall and probably on the order for most people have a half inch or less, But the temperatures are going to cool back down. Instead of seeing highs in the 90s and up near 100. It’s more like the 70s and 80s for several days, so it’s actually gonna be below-normal temperatures for a bit. That kind of occurs late next week into the following week, so it’ll be a nice relieving break for them.

Unfortunately, many parts of rural America are still stuck in a drought. We’ll talk about that more later this week.

Again, that’s DTN ag meteorologist John Baranick

Farmer optimism is in the dumper and there is no nice way to say it. COVID-19 and its economic impact, low commodity prices, trade wars, and weather have made life even more challenging. DTN found out that farmer optimism is at a record low. They’ve been doing a tri-annual survey of farmers for several years and this spring’s Agricultural Confidence Index hit an all-time low mark.

The baseline for their survey is 100. Everything below 100 is pessimistic, and any number above 100 is considered optimistic.

“We do our survey in the spring, just before planting,” said DTN Editor-In-Chief Greg Horstmeier. “We also do one at harvest, and then our final survey is in December, which is basically farm tax time. The drop in the index from the last time we did this in December is not a surprise, given everything that’s going on.

“It was a record-sized drop down to an index reading of 67,” he added. “That’s a 97-point drop, which is even more remarkable because we’re hearing that agriculture is moving on as normal. Everyone is either getting ready to or heading out into the field, so that big of a damper on the survey results is surprising.”

Horstmeier said spring is typically the most optimistic time of the year for farmers. New crops are going into the ground, which automatically means a fresh start, especially if the year before was as tough as 2019. Low optimism in the spring isn’t unusual. What’s unusual about this survey is how pessimistic farmers are about the future outlook.

The future outlook is typically very optimistic during the spring survey. “This year, that index reading was 73, which means it dove hard into negative territory,” Horstmeier said. “That was the big takeaway for me. Not only does the current situation have farmers in a pessimistic state of mind, but they don’t have a lot of promise for the foreseeable future.”

Another thing that really stood out was just how prevalent the pessimism is in different sectors of agriculture. It didn’t matter what farmers grew or how big their operations were, either. Even in down years, there’s typically difference worth noting.

“We typically see at least some differences between, for example, livestock and crop producers,” Horstmeier said. “We’ve also seen regional differences, such as the Midwest may be less optimistic than farmers in the Southeast. The pessimism was across the board, regardless of location, income level, the crops they grew, and what kind of enterprises they had.”

Speaking of Midwest farmers, in this year’s survey they showed the most pessimism currently, yet they also had the most optimism for the future. Southeastern farmers were more optimistic about their current conditions (89) but felt less optimism for their future (56).

DTN also conducts a similar survey of agribusinesses. The index level came in at a just-above-neutral 104. Agribusinesses rated their current conditions at a slightly pessimistic 85. However, they were above neutral when looking at the future, coming in at 118.

Here’s the link to the DTN survey article.

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Rain Finally Shows In Farm Country Last Weekend

Farmer optimism hits an all-time low