For only the second time since May, the Purdue University-CME Group Ag Economy Barometer rose in December.
This month’s index climbed to 125, nine points higher than in November.
The Index of Current Conditions and the Index of Future Expectations rose in December, attributable mostly to an improved perspective on current conditions in the agricultural sector.
A more positive outlook regarding their farm’s financial situation by ag producers was a major contributor to this month’s rise.
However, farmers are concerned about rising input costs, with nearly half of producers choosing it as a top concern for 2022 and supply chain issues continue to haunt the nation’s agricultural sector.
45% of respondents said tight farm machinery inventories impacted their machinery purchase plans, and 39% said they’ve experienced difficulty in purchasing crop inputs for the 2022 crop season.
The index is calculated each month from 400 U.S. farmer responses to a telephone survey.