Agri-marketers very bullish, expect ag market to remain so
February 29, 2012 -- A poll conducted among corporate agribusiness executives in January showed an overwhelming majority think the current agricultural economy is positive and they expect it to remain so over the next 12 months.
"Agri-marketers' assessment of current conditions for both their companies and for farmers & ranchers is the highest we've seen since starting the Agri-Marketers Confidence Index (AMCI)," said Steve Custer, President, Publishing, Farm Journal Media and Chairman of the American Business Media (ABM) Agri-Council's Research Committee.
"That's both a reflection, I believe, of the stunning year most producers had, but also the fact most companies are the recipients of increased sales. The expectations indices for both the company question and for farmers and ranchers improved from last August."
The poll was conducted by Agri Marketing magazine and the ABM's Agri-Council and was sent to 225 executives of companies that develop and sell products to North American crop and livestock producers. A total of 82 (36%) 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.
"The AMCI is modeled closely along the lines of the well-known consumer confidence studies regularly reported by The Conference Board," said Custer. "It is an indicator designed to measure the confidence or the degree of optimism among 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.
A few of the highlights include:
*A record 80% of the Marketers rated the current business conditions for their company as positive.
*94% of the Marketers expect business conditions 12 months from now will be better or the same.
*37% expect to increase their marketing communications budget one year from now, 56% expect it to remain the same and 7% expect to reduce it.
"That confidence has shown up in the marketplace," says Lynn Henderson, Publisher of Agri Marketing. "Prices for farmland and rents continue to set new records and there have been reports that a new tractor or combine ordered today won't be delivered until September."