{"id":12101,"date":"2022-03-01T10:30:00","date_gmt":"2022-03-01T14:30:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=12101"},"modified":"2022-02-25T17:23:36","modified_gmt":"2022-02-25T21:23:36","slug":"media-farmer-sentiment-rises-during-commodity-price-rally-concern-over-production-costs-remains","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmer-sentiment-rises-during-commodity-price-rally-concern-over-production-costs-remains\/","title":{"rendered":"Farmer sentiment rises during commodity price rally; concern over production costs remains"},"content":{"rendered":"\n<p>WEST LAFAYETTE, Ind. and CHICAGO \u2014 Farmer sentiment continues to fluctuate month-to-month as the <a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/\">Purdue University\/CME Group Ag Economy Barometer<\/a> rose 6 points to a reading of 125 in February, a mirror image of the previous month. The <em>Index of Current Conditions<\/em> was down 1 point to a reading of 132, while the <em>Index of Future Expectations<\/em> improved 10 points to a reading of 122. The <em>Ag Economy Barometer<\/em> is calculated each month from 400 U.S. agricultural producers\u2019 responses to a telephone survey. This month\u2019s survey was conducted between February 14-18, 2022, days prior to Russia\u2019s invasion of Ukraine.<\/p>\n<div id=\"attachment_12021\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-12021\" class=\"wp-image-12021 size-medium\" src=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2022\/01\/AgEconomyBarometer_Jan2022-300x217.jpg\" alt=\"Ag Economy Barometer declines, producers concerned about rising costs and supply chain disruptions. (Purdue\/CME Group Ag Economy Barometer\/James Mintert).\" width=\"300\" height=\"217\" srcset=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2022\/01\/AgEconomyBarometer_Jan2022-300x217.jpg 300w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2022\/01\/AgEconomyBarometer_Jan2022-1024x742.jpg 1024w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2022\/01\/AgEconomyBarometer_Jan2022-768x557.jpg 768w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2022\/01\/AgEconomyBarometer_Jan2022-1536x1113.jpg 1536w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2022\/01\/AgEconomyBarometer_Jan2022-2048x1485.jpg 2048w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-12021\" class=\"wp-caption-text\"><strong>Ag Economy Barometer declines, producers concerned about rising costs and supply chain disruptions.<\/strong> (Purdue\/CME Group Ag Economy Barometer\/James Mintert).<\/p><\/div>\n<p>The <em>Farm Financial Performance Index<\/em> remained unchanged in February at a reading of 83. However, the sharp drop in the index, down 27% from late 2021 to 2022, indicates producers expect financial performance in 2022 to be worse than in 2021. The financial index is generated based upon producers\u2019 responses to whether they expect their farm&#8217;s current financial performance to be better than, worse than or about the same as the previous year.<\/p>\n<p>\u201cThese survey responses suggest that concerns about the spike in production costs and supply chain issues continue to mostly outweigh the impact of the commodity price rally that\u2019s been underway this winter,\u201d said <a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/team\/jim-mintert\/\">James Mintert<\/a>, the barometer\u2019s principal investigator and director of Purdue University\u2019s Center for Commercial Agriculture.<\/p>\n<p>Higher input costs have consistently been the number one concern identified by farmers over the past six-months, according to results from the <em>Ag Economy Barometer<\/em> survey. To gain additional insight into the concerns of producers, this month respondents were provided with a more detailed set of possible responses when answering this question. While a majority still consider input costs as their number one concern (47%), it was followed by lower output prices (16%), environmental policy (13%), farm policy (9%), climate policy (8%), and COVID-19\u2019s impact (7%).<\/p>\n<p>Tight machinery inventories continue to be a problem. In February, over 40% of producers stated that low farm machinery inventories are holding back their investment plans. While plans for farm building and grain bin construction were more optimistic this month, 56% still said their plans for new construction are below the previous year.<\/p>\n<p class=\"FORMAT-BODY\">Thirty-percent of corn and soybean producers say they\u2019ve had difficulty purchasing crop inputs from their suppliers. In a follow-up question posed to corn and soybean producers who said they experienced difficulty procuring inputs, herbicides are the most problematic input to source followed by fertilizer and farm machinery parts. To learn more about how crop producers are responding to surging fertilizer prices, corn producers were again asked if they plan to change their nitrogen fertilizer application rate in 2022 compared to the rate used in 2021. One-third of corn producers in this month\u2019s survey said they plan to use a lower nitrogen application rate this year than in 2021, compared to 37% of corn producers who said they planned to reduce their nitrogen application rate when surveyed in January.<\/p>\n<p class=\"FORMAT-BODY\">Each winter, the barometer survey asks producers to project their farm\u2019s annual growth rate over the next 5 years. In 2022, 53% stated they either had no plans to grow or plan to retire\/exit in the next five years, 19% expect their farm\u2019s annual growth rate to range from 5-10%, while 18% expect their farm\u2019s annual growth rate to be less than 5%.<\/p>\n<p class=\"FORMAT-BODY\">The need for better broadband coverage in rural areas has been highlighted in several legislative proposals at both the state and national level. The February barometer survey included a question asking respondents to characterize the quality of their farm\u2019s internet access. Just three out of ten respondents said they had \u201chigh quality\u201d internet access, 41% said \u201cmoderate quality,\u201d 16% chose \u201cpoor quality\u201d on the survey, while 12% stated that they did not have internet access at all. Responses to this question suggest that nearly three out of ten farms in this month\u2019s survey are unable to take advantage of many applications and services which require reasonable quality internet access.<\/p>\n<p class=\"FORMAT-BODY\">Read the full <i>Ag Economy Barometer<\/i> report at <a href=\"https:\/\/purdue.ag\/agbarometer\">https:\/\/purdue.ag\/agbarometer<\/a>. The site also offers additional resources \u2013 such as past reports, charts and survey methodology \u2013 and a form to sign up for monthly barometer email updates and webinars.<\/p>\n<p class=\"FORMAT-BODY\">Each month, the Purdue Center for Commercial Agriculture provides a short video analysis of the barometer results, available at\u00a0<a href=\"https:\/\/purdue.ag\/barometervideo\">https:\/\/purdue.ag\/barometervideo<\/a>. For even more information, check out the\u00a0<i>Purdue Commercial AgCast<\/i>\u00a0podcast. It includes a detailed breakdown of each month\u2019s barometer, in addition to a discussion of recent agricultural news that affects farmers. Available now at\u00a0<a href=\"https:\/\/purdue.ag\/agcast\">https:\/\/purdue.ag\/agcast<\/a>.<\/p>\n<p class=\"FORMAT-BODY\">The Ag Economy Barometer, Index of Current Conditions and Index of Future Expectations are available on the Bloomberg Terminal under the following ticker symbols: AGECBARO, AGECCURC and AGECFTEX.<\/p>\n<p>\u00a0<\/p>\n<h2>About the Purdue University Center for Commercial Agriculture<\/h2>\n<p>The <a href=\"https:\/\/ag.purdue.edu\/commercialag\/Pages\/default.aspx\">Center for Commercial Agriculture<\/a> was founded in 2011 to provide professional development and educational programs for farmers. Housed within Purdue University\u2019s Department of Agricultural Economics, the center\u2019s faculty and staff develop and execute research and educational programs that address the different needs of managing in today\u2019s business environment.<\/p>\n<p>\u00a0<\/p>\n<h2>About CME Group<\/h2>\n<p>As the world&#8217;s leading and most diverse derivatives marketplace, CME Group (<a href=\"http:\/\/www.cmegroup.com\/\">www.cmegroup.com<\/a>)\u00a0enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data \u2013 empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/interest-rates\/index.html\">interest rates<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/equity-index\/index.html\">equity indexes<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/fx\/\">foreign exchange<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/energy\/\">energy<\/a>,\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/agricultural\/\">agricultural products<\/a>\u00a0and\u00a0<a href=\"http:\/\/www.cmegroup.com\/trading\/metals\/\">metals<\/a>.\u00a0 The company offers futures and options on futures trading through the\u00a0<a href=\"http:\/\/www.cmegroup.com\/globex\/index.html\">CME Globex<\/a>\u00ae platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.\u00a0 In addition, it operates one of the world&#8217;s leading central counterparty clearing providers, CME Clearing.\u00a0\u00a0<\/p>\n<p>CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini\u00a0are trademarks of Chicago Mercantile Exchange Inc.\u00a0 CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.\u00a0 NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.\u00a0 COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively.<strong>\u00a0\u00a0<\/strong>Dow Jones, Dow Jones Industrial Average, S&amp;P 500 and S&amp;P are service and\/or trademarks of Dow Jones Trademark Holdings LLC, Standard &amp; Poor&#8217;s Financial Services LLC and S&amp;P\/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.\u00a0 All other trademarks are the property of their respective owners.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Writer:<\/strong> Kami Goodwin, 765-494-6999, <a href=\"mailto:kami@purdue.edu\">kami@purdue.edu<\/a><br \/><strong>Source:<\/strong> James Mintert, 765-494-7004, <a href=\"mailto:jmintert@purdue.edu\">jmintert@purdue.edu<\/a><\/p>\n<p><strong>Media Contacts:<br \/><\/strong>Aissa Good, Purdue University, 765-496-3884, <a href=\"mailto:aissa@purdue.edu\">aissa@purdue.edu<\/a><br \/>Dana Schmidt, CME Group, 312-872-5443,\u00a0<a href=\"mailto:dana.schmidt@cmegroup.com\">dana.schmidt@cmegroup.com<\/a><\/p>\n<p><strong>Related website:<br \/><\/strong>Purdue University Center for Commercial Agriculture: <a href=\"http:\/\/purdue.edu\/commercialag\">http:\/\/purdue.edu\/commercialag <\/a><br \/>CME Group: <a href=\"http:\/\/www.cmegroup.com\/\">http:\/\/www.cmegroup.com\/<\/a><\/p>\n<p><strong>Photo Caption: <br \/><\/strong><\/p>\n<p>Farmer sentiment rises during commodity price rally; concern over production costs remains. (Purdue\/CME Group Ag Economy\u00a0Barometer\/James Mintert). <a href=\"https:\/\/www.purdue.edu\/uns\/images\/2022\/ag-barometer222LO.jpg\">https:\/\/www.purdue.edu\/uns\/images\/2022\/ag-barometer222LO.jpg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEST LAFAYETTE, Ind. and CHICAGO \u2014 Farmer sentiment continues to fluctuate month-to-month as the Purdue University\/CME Group Ag Economy Barometer rose 6 points to a reading of 125 in February, a mirror image of the previous month. The Index of Current Conditions was down 1 point to a reading of 132, while the Index of&hellip;<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[],"class_list":["post-12101","post","type-post","status-publish","format-standard","hentry","category-media"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Farmer sentiment rises during commodity price rally; concern over production costs remains<\/title>\n<meta name=\"description\" content=\"Farmer sentiment continues to fluctuate month-to-month as the Purdue University\/CME Group Ag Economy Barometer rose 6 points to a reading of 125 in February, a mirror image of the previous month.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmer-sentiment-rises-during-commodity-price-rally-concern-over-production-costs-remains\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Farmer sentiment rises during commodity price rally; 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