Agri-Marketers Confidence Index Nudges Higher12/28/2016
The latest Agri-Marketers’ Confidence Index (AMCI) rose to 70 (0 is lowest 100 is highest) from 69 when it was last conducted in August 2016. The highest ever rating was in October 2012 at 87 and the lowest was in August 2014 at 52.
The poll, conducted by Connetiv’s Agri-Media Committee and Agri Marketing magazine among managers of corporate agribusinesses in earlier this month, shows they believe the current situation has improved for their companies and for farmers and ranchers.
44% of the respondents reported they believe the current business conditions for their companies in the U.S. agricultural market are positive and 45% report the conditions will be better in 12 months. 12% believe they will be worse.
43% of the respondents reported they believe the current business conditions for farmers and livestock producers are positive and 48% report the conditions will be better in 12 months. 9% believe they will be worse.
Don Tourte, VP/Market Leader Penton Agriculture and Chairman of the Agri-Media Committee, says, “The ACMI score tracks consistently with other Ag Indexes which report ag producers’ and retailers’ Confidence. They too, have shown slightly higher scores. Yields were much better than anticipated so even with lower prices, farmers were able to have higher gross incomes than they initially thought.”
Bill Miller, Vice Chairman of Meister Media Worldwide and Co-Chair of the Agri-Media’s Research Committee notes, “While fertilizer sales for this past year were reportedly off from what we saw in 2015, other inputs and services offered by ag retailers have shown modest improvement. Additionally, soybean prices and demand for high value crops remains strong, which bodes well for those markets and for the industry as a whole.”
To view the report, click here.
“It is also interesting to note that 53% of the respondents reported their organizations are planning to increase their marketing communications budgets, 23% plan to decrease them with the balance leaving them at the same level,” says Lynn Henderson, Publisher of Agri Marketing magazine. “That compares to a year ago when 51% of agri-marketers reported they were going to increase their budgets and 29% were going to decrease them.”
The poll was sent to 218 managers of companies that develop and sell products to U.S. and Canadian crop and livestock producers. A total of 119 (55%) company representatives participated in the poll, including a very wide sampling of large and small enterprises, as well as both crop and livestock-oriented companies. This is significantly higher than past survey responses according to Henderson.
“The AMCI is modeled closely along the lines of the well-known consumer confidence studies regularly reported by The Conference Board,” reports Tourte.
“It is an indicator designed to measure the confidence or the degree of optimism among corporate agribusiness marketers on the state of the agribusiness economy. It looks at both their outlook for their own business now and in the future, as well as their perception of the outlook for their customers – the nation’s farmers and ranchers.”
AMCI is calculated by looking at the percentage of positive versus negative responses.
To read how AMCI is calculated and its complete results, click here.