In a recent podcast discussing the results of the barometer, James Mintert, Director of the Center for Commercial Agriculture, noted that while the overall index seems to be in a holding pattern, there are interesting trends when comparing future expectations to current conditions. He mentioned that the slight increase in the barometer was driven by increased optimism about the future. The Index of Future Expectations saw a 5-point rise from February, while the Index of Current Conditions was 2 points lower than the previous month and 25 points below the same time last year.
At the top of farmers’ concerns are high input costs, followed by lower crop prices and higher interest rates. Associate Director of the Center for Commercial Agriculture, Michael Langemeier, noted that breakeven projections are slightly lower than last year due to many inputs already purchased. However, there are still concerns about potential fluctuations in fuel and labor costs. Mintert commented on this as a major issue for farmers: “High input costs and locking in high breakeven prices is a major concern for farmers.”
The survey conducted by Purdue also asked farmers about their opinions on making large investments and the reasons behind their decisions. The number of farmers expressing poor prospects for farm profitability has risen from 7% last fall to 22% this month. Mintert sees this as a sign of increased worries about a cost-price squeeze and uncertainty regarding farm profitability.
For more detailed information about the Ag Economy Barometer, including charts on responses to various questions, you can visit
