Farm Progress America, November 14, 2023Farm Progress America, November 14, 2023
Mike Pearson takes a look at the latest Purdue Ag Economy barometer published last week. Farmers reported a modest improvement in farm economy expectations for the future. However, rising interest rates are still a concern.
November 14, 2023
Mike Pearson examines the ag economy barometer published by Purdue University CME Group.
Overall, the ag economy improved during the month of October -- at least modestly.
The November report highlighted the positive trend with the index rising four points in October to 110.
To complete the barometer, economists ask farmers about how they feel about the economy now and how they see the ag economy a year from now.
For the November index of current conditions, the barometer increased three points to 101.
And when it comes to the index of future conditions, the barometer increased 5 points to 114.
Farmers expressed less concern about lower prices when it comes to crops and livestock. They also expressed a brighter outlook for their farm's finances. The barometer increased six points to 92-- the highest since April in the Farm Financial Performance Index.
The Farm Capital Index fell to 35-- 78 percent believe it's a bad time to make large investments in their farms mainly due to interest rates (41 percent cited this).
Farmers don't expect interest rates to stall the farmland market. Over one-third of farmland owners expect farmland values to increase in the upcoming year. Over 65 percent expect the values to increase in the next five years.
Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.
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