Farmer sentiment did see a slight improvement in July as the Purdue University/CME Group Ag Economy Barometer index rose 8 points to 113. The Index of Current Conditions was up 10 points to 100, and the Index of Future Expectations was 7 points higher than a month earlier.
The July survey showed that high input costs remained the biggest concern for 34% of farmers. The risk of lower crop and livestock prices also worries producers, with 29% citing it as a top concern, up from 25% in June. Reflecting the signals from the Federal Reserve that interest rates have peaked, only 17% of respondents cited rising interest rates as a top concern, down from 23% last month.
Although production costs for principal crops, including corn and soybeans, have decreased year over year, output prices have also fallen, raising the possibility of a cost-price squeeze for U.S. crop producers.
July saw a small improvement in the Short-Term Farmland Value Expectations Index, rising to 118 from 115 in June. This was driven by more respondents expecting stable farmland values over the next year. At the same time, the Long-Term Farmland Value Expectations Index dropped 6 points from June to 146, with fewer farmers expecting values to rise over the next five years.
The July Ag Economy Barometer survey was conducted July 15-19, 2024.