(The Center Square) – Farmers’ optimism for the economy is rising though many still have concerns about making future investments, a report published by Purdue University agriculture economists says.
The October Purdue University-CME Group Ag Economy Barometer had increases in current and long-term landscapes. Overall, the barometer rose four points from September to 110. That score was also eight points higher than the score in October 2022 but 11 points lower than the report two years ago.
“Farmers in this month’s survey were a bit less concerned about the risk of lower prices for crops and livestock and felt somewhat better about their farms’ financial situation,” the report based on surveys conducted between Oct. 16-20 stated.
Still, the report said farmers reported their lowest score for the year regarding farmers making large investments in their operations. That was due to 78% saying now is a bad time to make that move.
A growing number of those concerned farmers cited higher interest rates as the main reason. In October’s survey, 41% of those bearish farmers worry about interest rates, compared to just 25% in January.
As they start to look ahead to 2024, 36% of those surveyed said higher costs on seed, fertilizer and other essentials are their biggest concern, while another 25% fear higher interest rates.
Corn and soybean growers were asked about changes they’re making due to the drier conditions they endured this year. A quarter of those farmers said they’ve either started or increased their use of no-till farming, while 23% said they’ve changed the types of crops planted. One in five said they relied on crops designed to better endure droughts.
Meanwhile, optimism over the long-term value of farmland is as high as it’s been in two years.
“Producers who expect values to rise continued to point to non-farm investor demand as a key reason for their optimism about farmland values,” said James Mintert, a Purdue professor and the director of the Department of Agricultural Economics, in a video detailing the report.