Farmer sentiment drifts lower, rising interest rates contribute to uneasiness
WEST LAFAYETTE, Ind. and CHICAGO, Oct. 4, 2022 /PRNewswire/ -- The Purdue University/CME Group Ag Economy Barometer farmer sentiment index declined 5 points to a reading of 112 in September. The decline in farmer sentiment was primarily the result of producers' weakened perception of current conditions, as the Current Conditions Index declined 9 points to 109. The Index of Future Expectations also weakened slightly, declining 3 points from a month earlier to a reading of 113. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers' responses to a telephone survey. This month's survey was conducted between September 19-23.
"Concerns about input costs and, in some cases, availability are key factors behind the relative weakness in this month's farmer sentiment," said James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture. "However, a growing number of producers are also concerned about the impact of rising interest rates on their farm operations."
Higher input costs remain the number one concern among survey respondents. In September,
The Farm Capital Investment Index declined to a record low of 31 in September, as producers continue to indicate now is not a "good time" to make large investments in their farming operations. To understand why they felt that way, a follow-up question was posed to farmers who reported now being a "bad time" to make large investments. For the third month in a row, producers overwhelmingly (
Despite that negative perspective, fewer producers plan to reduce their farm machinery purchases. Since peaking in March 2022 at
Producers' perspective on farmland values continues to soften. This month the Short-Term Farmland Value Expectations Index fell 5 points to 123 and the Long-Term Farmland Value Expectations Index fell 7 points to 139. Compared to a year ago, the short-term index is down
This month's survey included a series of questions to understand producers' cover crop usage. Nearly six out of 10 (
Read the full Ag Economy Barometer report at https://purdue.ag/agbarometer. The site also offers additional resources – such as past reports, charts and survey methodology – and a form to sign up for monthly barometer email updates and webinars.
Each month, the Purdue Center for Commercial Agriculture provides a short video analysis of the barometer results, available at https://purdue.ag/barometervideo. For more information, check out the Purdue Commercial AgCast podcast available at https://purdue.ag/agcast, which includes a detailed breakdown of each month's barometer, in addition to a discussion of recent agricultural news that affects farmers.
The Ag Economy Barometer, Index of Current Conditions and Index of Future Expectations are available on the Bloomberg Terminal under the following ticker symbols: AGECBARO, AGECCURC and AGECFTEX.
About the Purdue University Center for Commercial Agriculture
The Center for Commercial Agriculture was founded in 2011 to provide professional development and educational programs for farmers. Housed within Purdue University's Department of Agricultural Economics, the center's faculty and staff develop and execute research and educational programs that address the different needs of managing in today's business environment.
About CME Group
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
Writer: Kami Goodwin, 765-494-6999, kami@purdue.edu
Source: James Mintert, 765-494-7004, jmintert@purdue.edu
Related websites:
Purdue University Center for Commercial Agriculture: http://purdue.edu/commercialag
CME Group: http://www.cmegroup.com/
Photo Caption: Farmer sentiment drifts lower, rising interest rates contribute to uneasiness. (Purdue/CME Group Ag Economy Barometer/James Mintert). https://www.purdue.edu/uns/images/2022/sept-barometerLO.jpg
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SOURCE CME Group