Farmers concerned about making large investments in 2024

Farmers have expressed concerns about making large investments in 2024, according to the latest Purdue University/CME Group Ag Economy Barometer. 

Ag economist Jim Mintert with Purdue’s Center for Commercial Agriculture says farmers are most concerned about high interest rates and machinery costs.

“The Farm Capital Investment Index, which is based on a question that says is now a good time or a bad time to make large investments in your farming operation,” he says. “It did improve slightly this month, but again very small change and if you look at it from a little longer term perspective, it’s still very weak.”

Mintert says last month’s index read 31, which is the lowest it’s ever been. 

“You go back three years ago, that index was sitting at a reading of 65,” he says. “You go back about 3 1/2 years ago to, you know, late 2020, early 2021, and that index was above 90.”

The Farm Capital Investment Index came in at 35 this month.

The Purdue Center for Commercial Agriculture surveys 400 U.S. agricultural producers each month regarding the status of the U.S. farm economy.

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