Farmer sentiment has worsened. The Purdue University-CME Group Ag Economy Barometer Index decreased from 135 points in August to 123 points in September. Both subindices also declined, with the Index of Current Conditions decreasing by 18 points and the Index of Future Expectations decreasing by 9 points. Marking a reversal from the previous month, a smaller proportion of respondents expect their operation to be better off financially than worse off a year from now. Increased input costs, chosen by a record 52 percent of respondents, remained the biggest concern. Moreover, 54 percent of respondents indicated that inflated input costs were the main factor limiting improvement in their farm’s financial situation. On a positive note, the Long-Term Farmland Value Expectations Index reached 168. The September barometer survey was conducted among 400 farmers across the country Sept. 14-18.
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Michael Langemeier
Joana Colussi
Michael Langemeier is the director of the Purdue University-Center for Commercial Agriculture and an agricultural economist with Purdue University. Joana Colussi is an assistant professor in the Purdue University-Department of Agricultural Economics. Each month the Ag Economy Barometer from the Purdue University-Center for Commercial Agriculture surveys 400 U.S. agricultural producers to discern attitudes and sentiments regarding the status of the U.S. farm economy. Each quarter 100 agribusiness leaders are surveyed to provide additional insight into the health of the agricultural economy. Visit ag.purdue.edu for more information.
