WEST LAFAYETTE, Indiana – According to Purdue-CME Group’s Ag Economy Barometer, farmers were slightly more optimistic about the agricultural economy in July.
“Although we have seen a slight uptick in sentiment this month, there is still a tremendous amount of uncertainty in the agricultural economy,” said James Mintert, principal investigator on the Barometer and director of Purdue University’s Center for Commercial Agriculture.
“Key commodity prices, including wheat, corn and soybeans, all weakened over the month and producers remain concerned about rising input prices and availability.”
Farmers raised concerns about several key issues affecting their operations, including:
• Higher input prices – 42% of respondents.
• Lower crop prices – 19% of respondents.
• Rising interest rates – 17% of respondents.
• Availability of inputs – 15% of respondents.
Farmers are unsure what input prices might look like next year. 26 percent said they expect prices to increase by 10% or more in 2023.
Eleven percent of respondents said they expect inflation to be less than 3%, while 26% said they expect inflation to be over 10%.
In the most recent survey, almost one in four crop producers said they plan to change their farm’s crop mix in 2023 due to increased input costs.
This was an increase from a month earlier when 19% of growers said they plan to make changes to their crop mix next year.
In a follow-up question, more than half of those surveyed said they plan to increase the proportion of their soybean acreage.
Check out the full report at https://tinyurl.com/2b2s9j9c.
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