Farmer sentiment dips amid weaker view of current conditions
WEST LAFAYETTE, Ind. and
"Rising interest rates and concerns about high input prices continue to put downward pressure on producer sentiment," said James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture. "This month over half (
When asked about their top concerns for their farming operations in the next 12 months, producers continue to point to higher input prices (
The Farm Capital Investment Index was lower this month, falling 8 points to a reading of 37. Increasing prices for farm machinery and new construction along with rising interest rates continue to be the two most commonly cited reasons for their negative view. Meanwhile, producers' rating of farm financial conditions changed little in August, as the Farm Financial Performance Index declined just one point to a reading of 86.
Despite increasing concerns about rising interest rates, producers remain cautiously optimistic about farmland values. The Short-Term Farmland Values Expectation Index rose one point to 126, while the long-term index was unchanged at a reading of 151. Four out of ten respondents (
To better understand the usage of carbon contracts in row-crop agriculture, corn and soybean growers were asked about the types of conversations they have had with those companies. In the August survey,
Read the full Ag Economy Barometer report at https://purdue.ag/agbarometer. The site also offers additional resources – such as past reports, charts and survey methodology – and a form to sign up for monthly barometer email updates and webinars.
Each month, the Purdue Center for Commercial Agriculture provides a short video analysis of the barometer results, available at https://purdue.ag/barometervideo. For more information, check out the Purdue Commercial AgCast podcast available at https://purdue.ag/agcast, which includes a detailed breakdown of each month's barometer and a discussion of recent agricultural news that affects farmers.
The Ag Economy Barometer, Index of Current Conditions and Index of Future Expectations are available on the Bloomberg Terminal under the following ticker symbols: AGECBARO, AGECCURC and AGECFTEX.
About the Purdue University Center for Commercial Agriculture
The Center for Commercial Agriculture was founded in 2011 to provide professional development and educational programs for farmers. Housed within Purdue University's Department of Agricultural Economics, the center's faculty and staff develop and execute research and educational programs that address the different needs of managing in today's business environment.
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Writer: Kami Goodwin, 765-494-6999, kami@purdue.edu
Source: James Mintert, 765-494-7004, jmintert@purdue.edu
Related websites:
Purdue University Center for Commercial Agriculture: http://purdue.edu/commercialag
CME Group: http://www.cmegroup.com/
Photo Caption: Farmer sentiment dips amid weaker view of current conditions (Purdue/CME Group Ag Economy Barometer/James Mintert). https://www.purdue.edu/uns/images/2023/agbarometer-23augOG.jpg
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