Farmer Sentiment Rises During Commodity Price Rally

The Purdue University-CME Group Ag Economy Barometer rose six points in February to 125, matching the sentiment reading from December. A more optimistic view of future conditions pushed the sentiment measure higher as the Index of Future Expectations rose ten points in February to 122, the most positive reading regarding the future by farmers since last August. The Index of Current Conditions was virtually unchanged at 132, just one point below a month earlier. This month’s survey was conducted from February 14-18, before Russia invaded Ukraine. The survey found producers remain concerned about the spike in production costs leading them to expect weaker farm financial performance in 2022 than in 2021. Supply chain issues continue to hold back farmers’ plans for investments in farm machinery as well as buildings and grain bins. Also, one-third of corn producers in this month’s survey said they plan to reduce their nitrogen application rate compared to the rate they used in 2021.

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