Trade war concerns continue to drive a sharp decline in producer sentiment toward the agricultural economy, according to the Purdue University/CME Group Ag Economy Barometer. The April barometer reading of 125 was 10 points lower than a month earlier and 15 points below the February reading. The barometer which is based on a monthly survey of 400 agricultural producers from across the country, shows that the drop in producer sentiment was driven by declines in both the Index of Current Conditions, which fell 11 points to 123, and the Index of Future Expectations, which fell 9 points to 126. The Index of Current Conditions was at its lowest level since May 2017, while the Ag Economy Barometer and the Index of Future Expectations were at their lowest levels since March 2017. Producers’ weakening perceptions of current conditions in the production agriculture sector, along with a decline in their expectations for future economic conditions, were the main drivers of the barometer’s overall decline, said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “There seems to be a spillover effect that is driving concern among agricultural producers,” Mintert said. “Negative perceptions about exports spill over into lower expectations for commodity prices, and then that changes producers’ views about farmland prices.” The trade dispute with China continues to be an area of concern. The biggest issue is the possible impact on U.S. soybean exports, 30 percent of which go to China. A majority of producers said they expect a sharp decline in the November soybean futures contract price, possibly to below breakeven.