Survey: farmers don’t expect commodity prices to offset rising ag input costs

Producers are slightly more optimistic about their farms’ financial performance, according to the latest Purdue University/CME Group Ag Economy Barometer.

But, Purdue University’s Jim Mintert says farmers surveyed don’t expect commodity price strength to offset record high ag input costs.

“That’s reflecting the concerns people have about input costs because commodity prices in corn, wheat, soybeans, and cotton all look very positive,” he says. “…It looks like 2022 should be a pretty good year, but I think the concern people have is about input prices.”

The Farm Financial Performance Index rose four points to a reading of 87. But, the index is 30 percent lower than a year ago.

He tells Brownfield some farmers are concerned about what will happen to inputs costs if commodity prices weaken.

“With strong commodity prices, even with the high input costs, it looks like a pretty profitable opportunity to plant corn, soybeans, wheat, and cotton. The concern is what if those commodity prices weaken, will we see input costs come down,” he says. “We know from history that input costs can come down. We have evidence of that, but they tend to be slow, and I think that’s created a level of anxiety among producers.”

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

Audio: Jim Mintert

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