Farmer sentiment rises amid improved financial conditions
The Purdue University/CME Group Ag Economy Barometer rose 4 points (3.8%) in October to a reading of 110, which was 7.8% higher than last year. The modest improvement in farmer sentiment resulted from farmers’ improved perspective on current conditions on their farms as well as their expectations for the future. The Index of Current Conditions rose 3 points to 101 while the Index of Future Expectations rose 5 points to 114. Farmers were a bit less concerned about the risk of lower prices for crops and livestock and felt somewhat better about their farms’ financial situation than a month earlier.
“Reports of higher-than-expected corn and soybean yields in some Corn Belt locations, along with a modest rally in corn prices, likely contributed to this month’s rise in the financial conditions and the barometer indices,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Farmers continue to be cautiously optimistic about farmland values, particularly when asked to look ahead five years. Nearly one in four corn and soybean farmers responding to this month’s survey reported making changes in their farm operation in response to long-term weather pattern changes in their area. Changes implemented by farmers were wide ranging and some farms reported making multiple changes to their farm operations in response to shifting weather patterns.
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