Farmers are more optimistic about the agricultural economy – AgriNews

WEST LAFAYETTE, Indiana – Farmers have been encouraged by higher commodity prices but remain concerned about high cost inflation, according to the Purdue University/CME Group Ag Economy Barometer.

The barometer rose eight points to 121. It remains 32% below last year’s level.

Rising prices for key commodities, particularly corn and soybeans, appear to be the cause of producers’ changed financial prospects.

“The Farm Financial Performance Index improved significantly this month to a score of 95 compared to a score of 87 last month,” said James Minintert, director of the Purdue Center for Commercial Farming.

“Growers feel slightly better in 2022 compared to 2021 in terms of their farm’s financial situation.”

However, the Farm Capital Investment Index did not improve, remaining at an all-time low of 36 in March-April.

The Purdue University/CME Group Ag Economy Barometer improved 8 points to a score of 121 in April; however, it remains 32% below its value at the same point last year. The barometer is calculated each month from the responses of 400 US agricultural producers to a telephone survey. This month’s survey was conducted between April 18th and 22nd.

Over 40% of manufacturers say purchasing plans are hampered by low machine inventories, and farmers continue to say that higher input costs are a key concern.

In April, 42% chose higher input costs as their top concern, more than twice as many who chose government action at 21% or lower output prices at 19%.

60% of farmers said they expect input prices to increase by 30% over the next 12 months.

Read the full Ag Economy Barometer report at purdue.ag/agbarometer.