Current conditions cause farmer sentiment to dip
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Ag producers are not as confident in the future, according to the most recent Purdue University/CME Group Ag Economy Barometer. The university says drop in farmer sentiment is due to a weaker perception among farmers of current conditions on their farm and across the ag industry.
The barometer is calculated monthly from a telephone survey of 400 agricultural producers across the country. The newest survey was conducted August 14-18, and saw the barometer rise eight points to 115.
The barometer includes two sub-indices, the Index of Current Conditions and the Index of Future Expectations, which fell 13 points and five points, respectively.
“Rising interest rates and concerns about high input prices continue to put downward pressure on producer sentiment,” James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, said in a news release. “This month over half (60%) of the producers we surveyed said they expect interest rates to rise in the upcoming year.”
When asked about the top concerns for their farming operations, 34% of respondents said higher input prices, 24% said rising interest rates, and 20% said declining commodity procies.
Another sub-index, the Farm Capital Investment Index, fell eight points, with increasing prices for farm machinery and new construction, as well as rising interest rates being the main reasons cited.
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