By Andi Anderson
A recent Purdue University survey has revealed that farmer pessimism about the economy has reached its lowest level in nearly a decade.
The Purdue Center for Commercial Agriculture’s September Ag Economy Barometer Index dropped to 88, reflecting significant concern about rising input costs and declining crop and livestock prices. The index fell 12 points from August and 25 points from July, marking a steep decline.
According to Jim Mintert, director of the Purdue Center for Commercial Agriculture, high input costs and lower prices for crops and livestock are the top concerns for farmers, with 34% of respondents citing input costs and 33% concerned about prices. An additional 17% expressed anxiety over the possibility of rising interest rates.
These economic worries have caused a shift in farmers' attitudes about land values. For the first time since 2020, more farmers now expect land values to decline over the next year.
The short-term farmland value index dropped 10 points to 95, signaling uncertainty in future profitability. Only 26% of respondents believe farm exports will increase in the next five years, marking the lowest optimism recorded since the survey began.
Additionally, 78% of farmers anticipate changes in government policies following the November elections, which adds to the overall atmosphere of uncertainty in the sector.
Concerns over the economy are also affecting investment decisions, with 69% of farmers reporting they plan to reduce spending on machinery, up from 53% in June.
Farmers who do consider it a good time to invest attribute their reasoning to the availability of high inventory from machinery dealers, according to Mintert.
With economic pressures rising, the survey results suggest that farmers are preparing for a difficult year ahead, scaling back investments, and keeping a close eye on key economic indicators that will impact their operations.
Photo Credit: purdue-university
Categories: Indiana, General