Farmer sentiment weakened in September as higher input costs continued to weigh on producers’ financial outlook.
The Purdue University-CME Group Ag Economy Barometer fell 12 points from August to 123.
Both components declined, with the Index of Current Conditions dropping 18 points and the Index of Future Expectations falling nine points.
For the first time since July, more farmers expected their financial situation to worsen rather than improve over the next year.
35% expected to be worse off, compared with 225 who anticipated improvement.
Higher input costs remained the biggest concern, cited by a record 52% of respondents.
54% said high input costs were the main factor limiting improvement in their farm’s financial situation.
The Farm Financial Performance Index fell to 90, while the Farm Capital Investment Index dropped six points to 39.
However, long-term farmland value expectations reached a record-high index of 168.
