The Purdue University/CME Group Ag Economy Barometer dropped five points in November to a reading of 116. Producers continue to be pessimistic about both the current and future outlook of the agricultural economy. Farmers are facing sharp increases in their cost of production that coincide with fluctuating crop and livestock prices. Other issues of concern are the prospect of changing environmental and tax policy, the uncertainty brought on by COVID-19, and a host of other issues that are all driving down farmer sentiment. The Farm Capital Investment Index shows 47 percent of respondents listing higher input costs as their biggest concern in the upcoming year. The Farm Financial Performance Index rose two points in November, helped by strong fall crop yields and stronger wheat prices. Producers remain optimistic about farmland values over the next 12 months and the next five years. Over half the farmers surveyed expect cash rental rates to rise in 2022.
Farmer Sentiment Weakens on Cost Concerns