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Ag Economy Barometer improves for second straight month

Farmer sentiment has improved in back-to-back months, according to the Purdue University-CME Group Ag Economy Barometer.

Jim Mintert with the Purdue Center for Commercial Agriculture says the Current Conditions Index rose significantly from year-ago levels.  “People felt quite a bit better partly because of the strong yields,” he says.  “In turn, that improved their farm financial situation better than what they thought it would be, even though commodity prices have not rallied and they’ve been relatively weak.”

He tells Brownfield the Index of Future Expectations only improved marginally, and that’s likely due to the continued elevated cost of production. “They’re worried about high input costs possibly generating a kind of a cost-price squeeze,” he says.

Mintert says the survey has been asking producers about their biggest concerns since the start of 2023. “And over time, fewer people are choosing higher input costs,” he says. “But that’s still a third of the people in the survey. More people are choosing rising interest rates than they were back in January, and more people are choosing lower crop and livestock prices than in January.”

Overall, the Ag Economy Barometer climbed 5 points from the prior month. 

The Ag Economy Barometer is a monthly national survey of 400 U.S. agricultural producers.

AUDIO: Jim Mintert, Ag Economy Barometer

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