Farmer Sentiment Drops As Concerns About Input Costs Increase

Farmer sentiment weakened in September, with the Purdue University/CME Group Ag Economy Barometer falling 12 points to 123. A record 52% of farmers identified higher input costs as their top concern, while 35% expect their farms to be financially worse off a year from now compared with 22% who expect improvement. The Farm Capital Investment Index also dropped six points to 39, signaling greater caution about major investments, although long-term expectations for farmland values reached a record high.

The growing focus on costs gives farm equipment dealers, seed and fertilizer suppliers, agricultural lenders, banks and credit unions, crop insurance providers, farm technology companies, agronomists and other agribusinesses an opportunity to emphasize efficiency, financing, productivity and solutions that can help farmers manage expenses and protect profitability.