Farmer sentiment improves, though financial concerns remain
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Farmer sentiment nationwide rose slightly in February, according to the latest Purdue University/CME Group Ag Economy Barometer. However, the Purdue Center for Commercial Agriculture said farmers remain concerned about their farms’ financial performance in the year ahead.
The barometer is calculated monthly from a telephone survey of 400 agricultural producers across the country. The newest survey was conducted Feb. 12-16, and saw the barometer rise five points to 111.
The increase was primarily led by a rise in the barometer’s Future Expectations Index. However, the Farm Financial Performance Index fell slightly compared to the previous month.
“Weak crop prices continue to weigh heavily on financial expectations, with mid-February Eastern Corn Belt cash prices for corn and soybeans declining by 7% and 8%, respectively, compared to two months earlier,” said James Mintert, the barometer’s principal investigator and director of the Center for Commercial Agriculture.
High input costs continue to be a top concern for farmers, representing 34% of respondents. But Mintert says other concerns are creeping up.
“The change has really come about with respect to the larger percentage of people who are now choosing lower crop and or livestock prices is a big concern,” he said. “A year ago, only 18% of the people in the survey chose that; this month, that was up to 28%. That’s as high as it’s been and, and I think reflects the weakness we’ve seen in prices.”
Mintert discussed the barometer results in the Purdue Commercial AgCast
Purdue says the percentage of farmers worried about farm profitability has tripled since last October. As such, producers are expressing more reluctance toward making large investments in their operations due to high product costs and weak output prices.
Each February, the survey asks producers about growth plans for their farm operation in the next five years. Just over three out of 10 respondents expected their farm’s annual growth rate to exceed 5%, while four out of 10 expressed no plans for growth.
The number of producers concerned about rising interest rates is starting to diminish, according to the barometer, with only 18% of respondence citing it as a top concern last month, compared to 26% in November.
You can connect to the full results of the February 2024 Ag Economy Barometer by clicking here.