Inflation was less of a worry for U.S. farmers in December, according to a new survey.
The Purdue University/CME Group Ag Economy Barometer recorded a reading of 114 in December, just one point lower than in November.
Farmers’ inflation expectations for the upcoming year were markedly lower than those reported a year ago for 2023, according to a news release.
Seventy percent of growers expect inflation in 2024 to be less than 4%. That compares with 50% of the producers who anticipated an inflation rate of 6% or higher a year ago, the release said.
“The shift in farmers’ perception of financial performance during the fall quarter corresponds with USDA’s more optimistic 2023 farm income outlook released in late November, which was $10 billion higher than their previous forecast,” James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, said in the release.
Farmers concerned about the risk of lower prices for crops and livestock increased from 16% of respondents in January to over one-fourth (26%) by December, the release said. No. 3 on the list of concerns for the upcoming year was “rising interest rates,” chosen by 24% of farmers in December’s survey.
About one-third (34%) of respondents said they anticipate rates declining in 2024 while 22% expect no change in interest rates in the upcoming year the release said.
