Farmer sentiment of the economy drifted lower in September, dropping five points from the August reading of the Purdue University/CME Group Ag Economy Barometer. Economists at Purdue’s Center for Commercial Agriculture, which conducts the nationwide survey, says a bleaker outlook regarding current conditions was the primary driver of the decline.
The barometer shows 44% of survey respondents saying higher input costs remain their number one concern.
“However, a growing number of producers are also concerned about the impact of rising interest rates on their farm operations.” said Jim Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. “Concerns about input costs and, in some cases, availability are key factors behind the relative weakness in this month’s farmer sentiment.”
When asked to look ahead to 2023, 38% of producers expect input prices to rise from 1% to 9% compared to 2022 prices. Nearly a quarter of the farmers expect input prices to rise from 10% to 19%. About 10% says the prices could be 20% higher next year.
Farmers who took part in the survey say now is not a good time to make large investments for their farming operations. Click here to access the full report from Purdue.