The latest Ag Economy Barometer from Purdue University and CME Group indicates a troubling drop in farmer sentiment, reaching its lowest point since March 2016 with a reading of 88. Key points also fell significantly, with the Index of Future Expectations down to 94 and the Index of Current Conditions at 76. Farmers expressed growing concerns over low commodity prices and high input costs, with only 26% expecting an increase in U.S. agricultural exports over the next five years. Additionally, 78% worry that potential government policy changes after the 2024 elections could adversely affect their operations.
Financial expectations among farmers have worsened, as seen in the Farm Financial Performance Index, which dropped to 68. The Farm Capital Investment Index remains near an all-time low, and the Short-Term Farmland Value Expectations Index fell to 95, indicating more farmers anticipate declining land values.
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