Farmer sentiment improves slightly in July
The Purdue University/CME Group Ag Economy Barometer rose two points in July to 123, a 19.4% increase from last year. This month’s rise was primarily the result of farmers’ improved perception of current conditions on their farms as the Index of Current Conditions rose 5 points to a reading of 121. The Index of Future Expectations increased one point to 124.
When asked to look ahead one year, there was a one-percentage-point increase in farmers expecting farm financial conditions to improve and a one-point decline in the percentage of farmers expecting conditions to worsen. Farmers’ longer-term perspective on the U.S. agricultural economy improved somewhat in July, as the percentage of respondents expecting bad times in the upcoming five years fell from 41% in June to 39% in July.
Farmers’ improved confidence in the current situation was reflected in an improved outlook on making large investments in their farming operation. Producers also continue to be optimistic about future farmland values, especially when asked to look ahead five years. Top concerns for farmers in the upcoming year continue to be high input costs followed by rising interest rates and the risk of lower prices for crops and livestock. Nearly one-fourth of corn/soybean producers expect farmland cash rental rates to rise in 2024 compared to 2023 while seven out of 10 producers look for no change in 2024’s rental rates.
