Farmers’ confidence is being shaken by lower profits, according to the monthly survey conducted by Purdue to calculate its Ag Economy Barometer.
Farm sentiment dropped sharply in January – by 23 points to 113.
Half of the farmers said their financial conditions have worsened from a year ago and 30 per cent believe things will worsen this year.
Producers reported worsening financial conditions compared to a year ago, with half indicating operations were worse off. Thirty percent expect Operating loans are rising, often due to carryover debt from prior years, signaling increasing financial pressure, the report said.
Concerns about U.S. agricultural exports also grew, particularly for soybeans, with competition from Brazil weighing heavily on producers.
