A national measurement of the farm economy shows farmers are less optimistic than they were last month. Purdue University’s Ag Economy Barometer declined 20 points in May to 158, which is the lowest reading since September 2020.
Purdue researchers saw a double-digit drop in two sub-indices that measure the Index of Current Conditions and the Index of Future Expectations.
The Center for Commercial ag says the potential for changing tax rules and rising farm production costs appeared to be the primary drivers for the barometer’s decline.
Farmers were also asked about their plans to construct new buildings or add grain bins this year. The barometer shows 59% of respondents are less likely to build.
“Rising construction costs are likely a contributing factor to producers’ weaker construction plans,” said the report.
The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey.
Center for Commercial Agriculture Director Jim Mintert provides comments about this month’s survey in the video below.