Ag Economy Barometer Declines

Farmer sentiment weakened in January as the Purdue University CME Group Ag Economy Barometer declined six points. At 119, it's second-lowest reading for the Barometer since July 2020. The Current Conditions Index fell 13 points to 133, while the Future Expectations Index changed little in January, down two points at 112. Rising farm input costs and ongoing supply chain disruptions appear to be contributing to producers' weaker perception of current conditions and expectations of their farm's financial performance in 2022 when compared to last year.

More producers expect the size of their operating loan to increase this year than last year or two years ago with the rise in farm input costs. Farmers in January also expressed less confidence that farmland values will continue to rise as farmland value indices fell about 10% from their respective fall 2021 peak levels. The barometer is calculated each month from 400 U.S. agricultural producers' responses to a telephone survey.

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