Purdue University/CME Group’s Economy Barometer shows dip, farmland value expectations remain steady
In the month of September, Purdue University/CME Group’s Economy Barometer revealed a continued decline in agri-producer sentiment, with the index dropping to 106. This downward trend has been attributed to rising input costs, escalating interest rates, and falling crop and livestock prices.
Despite these challenges, the Farm Capital Investment Index saw a slight increase, reaching 39. This rise occurred even amidst hesitations around investment in the agricultural sector.
Interestingly, a significant portion of corn and soybean growers reported using cover crops, with over half of respondents indicating their usage. However, some farmers have chosen to discontinue this practice due to concerns around profitability and resource allocation.
In contrast to the overall dip in sentiment, both the Short-Term and Long-Term Farmland (NYSE:FPI) Value Expectations Indices showed resilience. The short-term index remained steady while the long-term index saw an uptick. These trends suggest a continued faith in the value of farmland among agri-producers despite the current economic headwinds.
