Farmers’ optimism returning

Farmers are optimistic about the future, according to the latest monthly survey of 400 producers conducted by Purdue University and the CME (Chicago Mercantile Exchange). The overall index moved up 17 points to 121. The index for future expectations increased by 25 points to 123, but the index for current conditions didn’t budge. Forty per cent said their current financial situation has deteriorated from a year ago. Half of the livestock producers said they expect their conditions will improve. Yet 75 per cent of overall producers said now is a poor time to invest, citing high interest rates and rising prices for equipment and construction. The short-term index for farmland values, which asks producers about their outlook over the next 12 months, jumped 16 points to a reading of 126, its highest reading since last November. Meanwhile, the long-term index, which asks producers to look ahead five years, rose a more modest six points to a reading of 151, pushing that index up to its highest level since February 2022. Forty-three per cent of producers in the June survey think interest rates have peaked and nearly a quarter of survey respondents expect to see lower interest rates within the next year.