Purdue University/CME Group Economic Barometer Shows Decline, Expectations for Farmland Value Remain Stable By Investing.com

Investing.com | Editor Ambhini Aishwarya

Published Oct 6, 2023 at 2:48am ET

In September, the Purdue University/CME Group economic barometer showed a continued decline in agricultural producer sentiment, with the index falling to 106. This downward trend has been attributed to rising input costs, rising interest rates, and falling crop and livestock prices.

Despite these challenges, the Farm Capital Investment Index recorded a slight increase to 39. This increase came despite the reluctance to invest in the agricultural sector.

Interestingly, a significant portion of corn and soybean farmers reported using cover crops, with more than half of respondents reporting this. However, some farmers have decided to abandon this practice due to concerns about profitability and resource allocation.

In contrast to the overall decline in sentiment, both the short-term and long-term Farmland (NYSE:FPI) Value Expectations Index showed resilience. The short-term index remained stable while the long-term index recorded an upward trend. These trends suggest that agricultural producers continue to believe in the value of farmland despite the current economic headwinds.

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Written by: Investing.com