Farmers Concerns are Reflected in Latest Ag Economy Barometer Survey

Director of the Purdue University Center for Commercial Agriculture, Jim Mintert says that farmers' sediment regarding the ag economy is dropping. According to the latest Purdue University CME Group ag economy barometer August 2023 survey results.

“The ag economy barometer index fell eight points compared to last month. That was two points below a year earlier, but 23 points below two years ago. The current condition index this month fell 13 points compared to last month, and that leaves it 8% lower than it was in July of 2022. The future expectations index fell five points compared to July, but that was 2% higher than the July 2022 index value.”

The August results showed a resounding concern over continuous interest rate increases affecting the farm capital investments sediment as it was down eight points compared to last month and down two points compared to a year ago. The biggest concerns for farming operations continue to be high input costs followed by rising interest rates as 60% of producers expect to see rate hikes over the next 12 months. Even with interest rate concerns short and long-term indices remained strong. Also included in the August report was an update on carbon capture contracts for corn and soybean growers. When it comes to rates offered for carbon capture 47% said they were offered a rate of $10 to $20 per metric ton and 16% said they were offered a rate of $20 to $30 per metric ton.

The report can be found at purdue.edu/agbarometer.