WEST LAFAYETTE, Ind. – Farmers are much less optimistic in regards to the state of the farm economic system, in accordance with the Purdue College / CME Group Farm Economics Barometer studying in September.
“The agricultural economic system barometer fell 14 factors this month to 124, down from 138 final month,” stated James Mintert, director of the Middle for Industrial Agriculture at Purdue College.
“Regardless of the low confidence index of the Agricultural Economic system Barometer, farmers proceed to be very optimistic in regards to the worth of farmland. The index of long-term farmland worth expectations hit an all-time excessive of 159, and the short-term index rose as effectively. Virtually half of corn and soybean producers say they anticipate money rental charges for farmland to extend in 2022 in comparison with 2021. “
Amongst producers who anticipate money rents to extend, 44% stated they anticipated rental charges to drop from 5% to lower than 10%. Three in 10 respondents indicated that they anticipate charges to extend by 10% or extra.
In September, fewer farms stated they anticipated their farm’s monetary efficiency to be in keeping with final 12 months.
“Though the mixed responses left the Farm Monetary Efficiency Index unchanged from the earlier month, the rising divergence in expectations between respondents from August to September could replicate variations in how particular person farms dealt with threat. in a interval of quickly fluctuating commodity costs, ”Mintert stated.
Producers have additionally expressed issues about rising enter prices and inflation.
Learn the complete report at ag.purdue.edu/commercialag/ageconomybarometer.