Farmers’ Financial Expectations Dampened by Weak Crop Prices, Purdue/CME Survey Reveals

The latest Purdue University/CME Group Ag Economy Barometer indicates that farmers are bracing for a challenging year ahead, with high input costs and lower crop/livestock prices as their primary concerns. Despite a modest increase in overall farmer sentiment in February, reaching a barometer reading of 111, financial performance expectations remain subdued. The survey highlights a slight decline in the Farm Financial Performance Index and stable concerns regarding future farming conditions. Weak prices for corn and soybeans, as well as apprehensions about making significant investments, contribute to the cautious outlook among farmers. Additionally, the survey points to a trend of consolidation in farm operations, with a significant portion of respondents showing no plans for growth and some considering exiting the industry. This paints a complex picture of the agricultural sector, balancing optimism about the future with practical challenges impacting daily operations and long-term planning.