Farmer economic outlook shows slight gain
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Farmers entered 2023 with a slightly more positive outlook of the economy, according to recent results from the Purdue/CME Group Ag Economy Barometer. The index rose four points above the December outlook to a reading of 130. Economists from the Purdue Center for Commercial Agriculture say the modest increase in January was attributed to better expectations for the future.
While farmer sentiment among the 400 producers that were surveyed ticked higher, they still expect tighter margins in 2023 than in 2022.
The barometer shows about 22% of producers expect to have a larger operating loan this year because of higher operating expenses.
The survey shows about 70% of farmers think now is a bad time to make large investments for their operations. A majority of the producers say high prices for machinery is the top reason. However, 25% says it’s because of rising interest rates.
“Interest rates are becoming a bigger concern for farmers,” said Purdue Center for Commercial Director Jim Mintert, who authors the report. “As recently as November, just 19% percent of farmers in the monthly barometer survey chose rising interest rates as a key factor impacting their perspective on investments.”
Click here to access the full report.