U.S. farmers pessimistic

Farmers are growing ever more pessimistic, according to a monthly survey researchers at Purude University conduct to prepare their Ag Economy  Barometer

Weakening prices for major crops and ongoing concerns about high production costs and interest rates weighed on producers’ minds this month, their report said. There was a small uptick in the Farm Capital Investment Index, up two-points to a reading of 39 in September; however, three-fourths of the producers still said now is a bad time for large investments. The primary reasons among those who feel now is a bad time for large investments are rising interest rates and the high cost of machinery and new construction.  The Farm Financial Performance Index was unchanged in September compared to August. Producers remain relatively optimistic about farmland values, which is surprising given the percentage of respondents who expressed concerns about high input costs, rising interest rates, and the risk of lower crop and livestock prices.  The September survey included several questions posed to corn and soybean growers to learn more about their perspective on cover crops. Just over half (52 per cent) of the corn/soybean growers said they currently plant cover crops on a portion of their acreage and, from this group, nearly half (47per cent) said they used cover crops on no more than 25 per cent of their acreage.  Among those corn and soybean growers who reported having used cover crops, 41 pert cent said they had used cover crops for five years or less, while 14 per cent said they’ve been using cover crops for more than 20 years.  Respondents who use cover crops cited improvements to soil health and erosion control as their primary reasons.  Farmers who tried planting cover crops, but ultimately chose to discontinue their use, cited low profitability, lowered crop yields, insufficient soil benefits, and a lack of resources to plant cover crops.