Farmer Optimism Remains Weak
The Purdue University/CME Group Ag Economy Barometer continued lower in June, down two points to a reading of 97. The barometer’s Index of Future Expectations also dropped, falling five points to a reading of 95, the lowest level since 2016.
Producers were slightly more optimistic about their current conditions. The Index of Current Conditions rose five points to 99, but rising input costs and uncertainty about the future continue to weigh on farmer sentiment. Many producers in the survey said they’re concerned about the ongoing rise in production costs and volatile commodity prices, two factors that could lead to a production cost-income squeeze in 2023.
The Farm Financial Performance Index, which deals with income expectations in the current year, rose two points in June to 83. However, that’s still the lowest level for the index during the past two years. Input prices and availability continue to be the top concerns for U.S. producers.
If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail firstname.lastname@example.org