Source: Purdue University
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Farmer sentiment was unchanged in November as the Purdue University-CME Group Ag Economy Barometer Index came in at a reading of 102, the same as in October.
There was however a slight shift in underlying sentiment as the Index of Current Conditions declined 3 points this month to a reading of 98 while the Index of Future Expectations rose 2 points to 104.
This month’s survey was conducted the week following the November U.S. elections but, unlike the period immediately following the two most recent presidential elections, there did not appear to be a noticeable sentiment swing attributable to the election outcomes.
The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from November 14-18, 2022.
The Farm Financial Performance Index improved modestly this month to 91, up 5 points from last month, but that still left the index 14% below its year ago level of 106. The relatively weak index reading is attributable to the fact that more producers continue to say they expect their farms’ financial performance to be worse this year than last year compared to those who expect better performance.
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However, nearly half (45%) of producers say they expect financial performance this year to match 2021’s. Combined, this means that over two-thirds (68%) of producers say they expect financial performance in 2022 to match or exceed that of the prior year, providing a more positive perspective than that provided by the index examined in isolation.
Concerns about high input costs continue to weigh on producers’ minds with 42% of respondents in this month’s survey citing that as their top concern in the year ahead. Just over one-fifth (21%) of respondents chose rising interest rates as a top concern while input availability and declining commodity prices were chosen as a top concern by 14% of respondents.
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