April 14, 2024 2:41 pm
Despite current cost-price squeeze, Purdue Ag Economy Barometer reflects optimism about future.

A recent podcast on the results of the Ag Economy Barometer saw James Mintert, Director of the Center for Commercial Agriculture, highlight some interesting trends in the overall index. While it appears to be in a holding pattern, there have been significant changes in farmers’ future expectations compared to their current conditions. The Index of Future Expectations rose by 5 points from February, while the Index of Current Conditions was 2 points lower than the previous month and 25 points below the same time last year.

High input costs remain at the top of farmers’ concerns, followed by lower crop prices and higher interest rates. Associate Director Michael Langemeier noted that breakeven projections have decreased slightly from last year due to many inputs already being purchased. However, there are still concerns about potential fluctuations in fuel and labor costs. According to Mintert, high input costs and locking in high breakeven prices pose a major issue for farmers.

Farmers’ opinions on making large investments were also examined in a survey conducted by Purdue University. The number of farmers expressing poor prospects for farm profitability has increased from 7% last fall to 22% this month. This rise is seen as a sign of increased worries about a cost-price squeeze and uncertainty regarding farm profitability by Mintert.

For more detailed information about the Ag Economy Barometer, including charts on responses to various questions, visit: . If you wish to contact Katie Dehlinger for more information or interview opportunities with other experts at Purdue University, please reach out via email at [katie](mailto:katie)@dtn or follow her on X (formerly known as Twitter) @KatieD_DTN

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