Purdue Survey Finds Farmers Concerned About Economy

The latest report out of Purdue University shows farmers are becoming increasingly worried about the present economic conditions.

This month’s Purdue University-CME Group Ag Economy Barometer dropped eight points from August to 115. The barometer is based on the survey of 400 agricultural producers conducted in mid-August.

“Farmer sentiment dipped in August with farmers weakening perception of current conditions on their farms providing the impetus for weaker sentiment,” the report stated.

Fueling that sentiment were expectations by a majority of farmers polled who believe interest rates will rise over the next year. Farmers also continue to be concerned about increasing farm machinery costs and construction costs.

More than a third of those polled said higher input costs were their biggest concern, while nearly a quarter felt the same about higher interest rates. The report noted that even though crop prices dropped sharply over the summer, only 1-in-5 felt it was the chief issue facing their farming operations.

More farmers, though, do believe the value of their farmland will rise over the next year. The Purdue survey found 39% expected their property values to rise, and that’s up 10 percentage points from May. Those expecting higher property values also outnumbered those anticipating prices to fall by a 3-to-1 margin.

Source: thecentersquare.com

Photo Credit: Purdue University