American farmer sentiment hits its lowest level in nearly three years

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Farmer sentiment in the United States hit its lowest level in May in almost three years due to concerns surrounding the economic outlook and an escalating China-U.S. trade war, data jointly published by Purdue University and CME Group showed Tuesday.

May's Purdue University/CME Group Ag Economy Barometer, based on a mid-month survey of 400 agricultural producers across the U.S., weakened 14 points to a reading of 101, lowest since October 2016.

American farmer sentiment in May hit its lowest level in nearly three years. /Source: Purdue University/CME Group

The weaker farmer sentiment resulted from the downturn of farmers' outlook on both current and future economic conditions.

The Large Farm Investment Index, measuring producers' attitude toward making large investments in their farming operation, ebbed 11 points at a reading of 37 in May from a month earlier, the lowest since the Ag Economy Barometer's October 2015 inception, nearly 81 percent of the farmers said it was a "bad time" to make larger investments.

"Farmers are facing tough decisions in the midst of a wet planting season and a lot of uncertainty surrounding trade discussions," said James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture.

China is one of the most vital importers of U.S. farm products while the export amount to China has considerably declined owing to the trade disputes. In addition, industrial organizations, including the American Soybean Association, have warned many times that American farmers will pay for trade and economic frictions escalated by the U.S. side.