There is no news in the lead number from the latest Ag Economy Barometer since it remains unchanged, and the news about what continues to weigh on farmers’ minds is no surprise. Rising interest rates and the cost to produce a crop remain top concerns.
James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, says the November reading of 102 was unchanged from October this year, but “that was 12 percent lower than it was in November 2021. The Index of Current Conditions was down three points versus last month, but that leaves that index 23 percent lower than it was a year ago. The Future Expectations index was actually up two points this month compared to a month ago, but that leaves that index 5 percent below where it was in November of 2021.”
Farmer sentiment obviously lags one year ago, and producers have concerns about the coming year too.
“Forty-two percent of the producers in this month’s survey chose higher input costs as their top concern, followed by rising interest rates chosen by 21 percent of the producers in the survey and availability of inputs and lower crop or livestock prices, chosen by 14 percent of the producers in this month’s survey.”
The Farm Capital Investment Index fell back to the record low of 31 first recorded a couple of months ago. Those who said now is a bad time to make large investments in the farm operations were asked why they felt that way.
“The top choice continues to be the increase in prices for farm machinery and new construction.”
Just 10 percent of those surveyed said now is a good time to make large investments.
In the new survey 27 percent of respondents say they made changes in their operation because of higher energy prices. The changes include 33 percent who reduced tillage, 24 percent reduced nitrogen rates and/or changed application timing, 11 percent increased their use of no-till, and 8 percent said they reduced crop drying.
Mintert says the survey indicates the November mid-term election outcomes did not have an impact on farmer sentiment. There was an impact after the 2016 and 2020 presidential elections.
The monthly Ag Economy Barometer is based on input from 400 U.S. agricultural producers during a telephone survey.
The full Ag Economy Barometer report is here.
Source: Purdue News Service
