The latest reading of the Purdue University/CME Group Ag Economy Barometer shows growing concern among farmers over rising interest rates. The monthly measurement of farmer sentiment dropped 10 points in October to a reading of 102, which is a 16% drop compared to the same period a year ago.
Purdue ag economists say readings of two sub-indices, which measure current conditions and future expectations, also declined last month.
“This month’s weakness in farmer sentiment pushes the index back near levels observed in late 2015 and early 2016 when farm income was sharply lower than it has been the last two years,” showed the report from the Purdue Center for Commercial Agriculture.
Of the 400 farmers surveyed, 21% say rising interest rates is their top concern. However, 43% of producers say their biggest fear continues to be rising input costs and the impact to their farming operations.
Another concern is the drought-impacted Mississippi River which has slowed barge shipments of grain to export markets.
To view the full report, click here.