Farmers’ concern growing about the economy
The latest reading of the monthly Purdue University/CME Group Ag Economy Barometer continues to reveal weakening farmer sentiment, both now and in the future, of the agricultural economy. The overall measurement, based on responses from 400 farmers nationwide, fell eight points in March.
Conducted by economists at the Purdue Center for Commercial Agriculture, the survey’s sub-indices also declined last month. The Current Conditions Index and the Future Expectations Index both fell eight points.
Purdue says rising interest rates and weaker prices for key commodities including wheat, corn, and soybeans were key factors behind this month’s lower sentiment reading.
Although producers still cite high input costs as their top concern for their farm operations in the upcoming year, they are becoming more worried about rising interest rates and the impact those higher rates will have on their operations, according to Purdue ag economists.
Purdue says the March survey did not include any questions directly related to the demise of Silicon Valley Bank and Signature Bank. It did offer an open-ended comment question and many respondents expressed concerns about the banking sector’s problems and potential impact to the economy.
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