Farmer outlook took another hit in September, according to the latest Ag Economy Barometer from Purdue University and CME group.
The index is based on a survey of 400 agricultural producers on economic sentiment each month. The Barometer dropped to 112, down 5 points from earlier this month.
“The decline in farmer sentiment was primarily the result of producers’ weaker perception of current conditions as the Current Conditions Index declined to 109, 9 points lower than in August,” according to the report.
A few of the top concerns reported were higher input costs and the shifting of U.S. monetary policy.
“This month, 44% of respondents chose higher input costs as their No. 1 concern, down from 53% last month,” according to the report.
Twenty-three percent of producers stated concern over rising interest rates, up from 14% in August.
On a more positive note, the Barometers Farm Financial Performance Index was unchanged from August.
“As the year unfolded, however, producers’ worst fears regarding input cost rises and poor input availability did not materialize, providing much more certainty to their farm’s financial outlook and contributing to their improved perspective on farm financial performance,” according to the report.
Farmers also stated they do not view it as a good time to make large investments, according to the Farm Capital Investment Index portion of the Ag Economy Barometer. This index hit a record low of 31 in September. When asked why they thought it was a bad time to make large purchases, producers stated, “it was primarily because of the increase in prices for farm machinery and new construction.”
When asked about input prices, 18% of producers anticipated prices to decline in 2023, while 38% of producers expected input prices to rise anywhere from 1% to 9%, up from 18% in April.
