IARN — For the third month in a row, agricultural producer sentiment weakened in October. The Ag Economy Barometer declined to 121, three points lower than a month earlier. The modest decline occurred as a result of producers’ weaker perceptions regarding both current and future conditions in the production agriculture sector. Recent weakness in farmer sentiment appears to be driven by a wide variety of issues, with concerns about input price rises topping the list.
The Farm Capital Investment Index remains weak, in large part because of supply chain problems as four out of ten respondents said tight machinery inventories were holding back their purchasing plans. Despite the weak overall sentiment expressed by producers, they remain optimistic about farmland values, both in the upcoming year and over the next five years.
The Purdue University-CME Group Ag Economy Barometer index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey.
Story courtesy of the Iowa Agribusiness Radio Network.
Image source: Wikimedia Commons
