A monthly survey conducted by economists at Purdue University shows farmer sentiment about the agricultural economy continues to fluctuate, as farmers worry about costs associated with the upcoming planting season. The February Purdue/CME Ag Economy Barometer rose six points from last month’s reading.
Purdue says the shift in sentiment was primarily attributed to producers expressing a bit more optimism about the future than in January because of improving grain prices. Still, the survey shows deep concerns about the growing cost to farm.
“These survey responses suggest that concerns about the spike in production costs and supply chain issues continue to mostly outweigh the impact of the commodity price rally that’s been underway this winter,” said Jim Mintert, director of Purdue University’s Center for Commercial Agriculture.
Higher input costs have consistently been the number one concern identified by farmers over the past six-months, according to the survey.
Mintert points out the survey was conducted several days before Russia invaded Ukraine. That’s relevant because Russia ranks number one and Ukraine number 5 in global wheat exports, accounting for 30% of all wheat shipments.
Click here to view video analysis of the report from Mintert.