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Ag Economy Barometer: High input costs, Iran conflict impacting farmer sentiment

An ag economist says the Iranian conflict is having an impact on farmer sentiment in this month’s Purdue University/CME Group Ag Economy Barometer.

Michael Langemeier is the director of Purdue’s Center for Commercial Agriculture.

“From a crop budget standpoint, you factor in that higher nitrogen price for an individual that did not buy their fertilizer until after the conflict started, you’re probably looking at least a 5% increase in corn break-even price,” he says. “That’s very, very concerning.”

He tells Brownfield more than half of this month’s survey respondents say high input costs are limiting their profitability, but, “The fact that the index of future expectations is higher means that they expect things to improve at least slightly in the future. That tells me that the low margins they’re currently experiencing could be at least a little bit better down the road.”

The Barometer is a nationwide measure of the health of the U.S. agricultural economy and surveys 400 agricultural producers on economic sentiment each month.

AUDIO: Michael Langemeier, Purdue University