Farmer economic outlook pushes higher at year’s end
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As the 2022 clock wound down, farmer’s attitudes about the agricultural economy improved. The monthly Purdue University-CME Group Ag Economy Barometer improved by 24 points in December.
The Purdue Center for Commercial Agriculture says U.S. farmers were more positive last month regarding both the current financial situation, as well as their expectations for the future.
“By far the biggest improvement was in their assessment of current conditions. The Current Conditions Index reached 135, 37 points higher than in November while the Future Expectations Index hit 122, 18 points above a month earlier,” said Purdue ag economists.
Although the Future Expectations Index also rose this month, farmers expect their farms’ financial performance in 2023 to be weaker than in 2022, citing higher costs as a key reason.
“Once again, we asked producers what their biggest concerns are for their farming operation in the upcoming year,” said Purdue Center for Commercial Agriculture Director Jim Mintert. “And the biggest concern among producers continues to be higher input costs that was chosen by 45% of the respondents in this month survey. Number two on the list was rising interest rates and that was chosen by 22% of the respondents in this month’s survey.”
The sentiment index is conducted monthly and is based on responses from 400 U.S. agricultural producers.