Source: Purdue University
Farmer sentiment drifted lower in June as the Purdue University-CME Group Ag Economy Barometer reading of 105 was 3 points lower than a month earlier. A five-point decline in the Index of Future Expectations to 112 was responsible for the overall sentiment decline, as the June Current Conditions Index of 90 was one point above the May index value.
High input costs and the risk of lower prices for the products they produce continue to weigh on farmer sentiment, along with concerns about rising interest rates.
This month’s Ag Economy Barometer survey was conducted from June 17-21, 2024.
Capital Investment
The capital investment outlook weakened slightly in June as the Farm Capital Investment Index fell 3 points to a reading of 32, which leaves the index just one point higher than its all-time low. More producers this month said now is a bad time to make large investments than in May, with no change in the percentage of producers who said it’s a good time to invest. Interest rate concerns appear to be affecting farmers’ investment outlook.
Over the last several months, the percentage of producers citing rising interest rates as a top concern for their farm operation has been rising. In February, 18% of survey respondents chose rising interest rates as a top concern. That percentage has been rising every month since then, reaching 23% in the June survey.
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