Lower commodity prices and anticipation of lower farm income in 2024 led to a downturn in farmer sentiment, according to the latest Purdue University/CME Group Ag Economy Barometer.
The Purdue Center for Commercial Agriculture said producers expressed a more pessimistic perspective about their farms’ current situation and future prospects.
The barometer is calculated monthly from a telephone survey of 400 agricultural producers across the country. The newest survey was conducted Jan. 15-19, and saw the barometer fall eight points to 106.
All of the sub-indices of the barometer, including the Current Conditions Index, Future Expectations Index, and Farm Financial Performance Index, were all lower than the previous month.
“The number of producers pointing to lower commodity prices and lower farm income in 2024 significantly influenced the decline across all indices,” James Mintert, the barometer’s principal investigator and director of the Center for Commercial Agriculture, said in a news release.
The number of producers anticipating a decline in their farms’ financial performance for the upcoming year rose from 20% in December to 31% in January.
“For the first time, the percentage of producers choosing lower commodity prices as a top concern matched the percentage of producers who chose higher input costs,” Mintert said. “This alignment indicates that U.S. farmers are worried about a possible cost/price squeeze leading to lower farm incomes.”
The Farm Capital Investment Index also fall eight points to 35. Purdue said while fewer producers attributed their hesitation to make large investments to rising interest rates, more farmers cited high machinery and construction prices as reasons to defer investments.
You can connect to the full results of the January 2024 Ag Economy Barometer by clicking here.
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