{"id":13447,"date":"2023-11-07T10:00:00","date_gmt":"2023-11-07T14:00:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=13447"},"modified":"2023-11-07T09:44:35","modified_gmt":"2023-11-07T13:44:35","slug":"media-farmer-sentiment-rises-as-producers-report-improved-financial-conditions-on-their-farms","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmer-sentiment-rises-as-producers-report-improved-financial-conditions-on-their-farms\/","title":{"rendered":"Farmer sentiment rises as producers report improved financial conditions on their farms"},"content":{"rendered":"\n<p>There was a slight uptick in agricultural producers\u2019 sentiment in October, as the\u00a0<a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/\">Purdue University\/CME Group Ag Economy Barometer<\/a>\u00a0index rose 4 points to a reading of 110. The modest improvement in farmer sentiment resulted from farmers\u2019 improved perspective on current conditions on their farms as well as their expectations for the future. The\u00a0<em>Index of Current Conditions<\/em>\u00a0rose 3 points to 101 while the\u00a0<em>Index of Future Expectations<\/em>\u00a0rose 5 points to 114. This month\u2019s\u00a0<em>Ag Economy Barometer<\/em> survey was conducted from October 16-20, 2023.<\/p>\n<div id=\"attachment_13448\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-13448\" class=\"size-medium wp-image-13448\" src=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/11\/AgEconomyBarometer_October2023-300x218.jpg\" alt=\"Farmer sentiment rises as producers report improved financial conditions on their farms (Purdue\/CME Group Ag Economy Barometer\/James Mintert).\" width=\"300\" height=\"218\" srcset=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/11\/AgEconomyBarometer_October2023-300x218.jpg 300w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/11\/AgEconomyBarometer_October2023-1024x743.jpg 1024w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/11\/AgEconomyBarometer_October2023-768x557.jpg 768w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/11\/AgEconomyBarometer_October2023-1536x1115.jpg 1536w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/11\/AgEconomyBarometer_October2023-2048x1486.jpg 2048w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-13448\" class=\"wp-caption-text\">Farmer sentiment rises as producers report improved financial conditions on their farms (Purdue\/CME Group Ag Economy Barometer\/James Mintert).<\/p><\/div>\n\n\n\n<p>\u201cFarmers in this month\u2019s survey were slightly less concerned about the risk of lower prices for crops and livestock and felt somewhat better about their farms\u2019 financial situation than a month earlier,\u201d said\u00a0<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\n\n\n<p>Farmers\u2019 more optimistic view of their farms\u2019 financial situation was reflected in the\u00a0<em>Farm Financial Performance Index,<\/em>\u00a0which rose 6 points in October compared to September. This month\u2019s index value of 92 was the highest farm financial performance reading since April and pushed the index 7% above its reading from a year ago. The index\u2019s rise stood in contrast to USDA\u2019s\u2019 forecast for 2023 net farm income to fall below 2022\u2019s income level.<\/p>\n\n\n\n<p>\u201cReports of higher-than-expected corn and soybean yields in some Corn Belt locations, along with a modest rally in corn prices, likely contributed to this month\u2019s rise in the financial conditions and the barometer indices,\u201d said Mintert.<\/p>\n\n\n\n<p>Despite the perception that financial conditions were stronger than a month earlier, the&nbsp;<em>Farm Capital Investment Index<\/em>&nbsp;fell 4 points in October to a reading of 35. This was the lowest reading of the year for the investment index. In October, nearly 8 out of 10 (78%) respondents said it was a bad time to make large investments in their farm operation, while just 13% of farmers said it was a good time to make large investments. Among those who said it\u2019s a bad time to invest, the most commonly cited reason was rising interest rates, chosen by 41% of respondents, up one point from September. Of those who said it is a good time to make large investments in their farm operation, 24% stated \u201cstrong cash flows,\u201d down from 32% who felt that way in September, and 20% pointed to \u201cexpansion opportunities\u201d up from 6% in September.<\/p>\n\n\n\n<p>Just over one-third (35%) of producers in this month\u2019s survey said they expect farmland values to rise in their area in the upcoming year, while nearly two-thirds (65%) of survey respondents expect farmland values to rise over the next 5 years. As a result, the&nbsp;<em>Short-Term Farmland Value Index<\/em>&nbsp;changed little, dropping just one point compared to a month earlier, while the&nbsp;<em>Long-Term Farmland Value Expectations Index<\/em>&nbsp;rose three points. Key reasons cited by producers for optimism about farmland values over the next five years continue to be non-farm investor demand, followed by inflation.&nbsp;<\/p>\n\n\n\n<p>Dry weather this past spring and summer stimulated discussions among producers about shifts in long-term weather patterns. This month\u2019s survey asked corn and soybean producers if they have explicitly made any changes in their farming operation in response to changes in long-term weather patterns in their area. Nearly one out of four corn\/soybean farmers (24%) in the October survey indicated they implemented changes in their farm operations to better deal with shifting weather patterns. A follow-up question posed only to farmers who said they\u2019ve made changes, asked them to identify the biggest operational changes they\u2019ve made to date. Responses indicated farmers are choosing from among a broad mix of technologies and capital investments to adapt to changing weather patterns, including: increased use of no-till (25% of respondents); changed mix of crops planted (23% of respondents); planted more drought resistant varieties (20% of respondents); installed tile drainage (9% of respondents); and installed irrigation (9% of respondents).<\/p>\n\n\n\n<p><strong>About the Purdue University Center for Commercial Agriculture<\/strong><\/p>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/ag.purdue.edu\/commercialag\/home\/\">Center for Commercial Agriculture<\/a>&nbsp;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\n\n\n<p><strong>About CME Group<\/strong><\/p>\n\n\n\n<p>As the world&#8217;s leading derivatives marketplace, CME Group (<a href=\"http:\/\/www.cmegroup.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">www.cmegroup.com<\/a>)&nbsp;enables 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&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/interest-rates\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">interest rates<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/equity-index\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">equity indexes<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/fx\/\" target=\"_blank\" rel=\"noreferrer noopener\">foreign exchange<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/energy\/\" target=\"_blank\" rel=\"noreferrer noopener\">energy<\/a>,&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/agricultural\/\" target=\"_blank\" rel=\"noreferrer noopener\">agricultural products<\/a>&nbsp;and&nbsp;<a href=\"http:\/\/www.cmegroup.com\/trading\/metals\/\" target=\"_blank\" rel=\"noreferrer noopener\">metals<\/a>.&nbsp; The company offers futures and options on futures trading through the&nbsp;<a href=\"http:\/\/www.cmegroup.com\/globex\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">CME Globex<\/a>\u00ae platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.&nbsp; In addition, it operates one of the world&#8217;s leading central counterparty clearing providers, CME Clearing.&nbsp;<\/p>\n\n\n\n<p>CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini&nbsp;are trademarks of Chicago Mercantile Exchange Inc.&nbsp; CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.&nbsp; NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.&nbsp; COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively.&nbsp;<a>The S&amp;P 500 Index is a product of S&amp;P Dow Jones Indices LLC (\u201cS&amp;P DJI\u201d). \u201cS&amp;P\u00ae\u201d, \u201cS&amp;P 500\u00ae\u201d, \u201cSPY\u00ae\u201d, \u201cSPX\u00ae\u201d, US 500 and The 500 are trademarks of Standard &amp; Poor\u2019s Financial Services LLC; Dow Jones\u00ae, DJIA\u00ae and Dow Jones Industrial Average are service and\/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&amp;P 500 Index are not sponsored, endorsed, marketed, or promoted by S&amp;P DJI, and S&amp;P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.<\/a><\/p>\n\n\n\n<p>Writer: Kami Goodwin, 765-494-6999,&nbsp;<a href=\"mailto:kami@purdue.edu\">kami@purdue.edu<\/a>&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>Source: James Mintert, 765-494-7004,&nbsp;<a href=\"mailto:jmintert@purdue.edu\">jmintert@purdue.edu<\/a><\/p>\n\n\n\n<p>Media Contacts:<br>Aissa Good, Purdue University, 765-496-3884,&nbsp;<a href=\"mailto:aissa@purdue.edu\">aissa@purdue.edu<\/a><br>Dana Schmidt, CME Group, 312-872-5443,&nbsp;<a href=\"mailto:dana.schmidt@cmegroup.com\">dana.schmidt@cmegroup.com<\/a><\/p>\n\n\n\n<p>Related websites:<br>Purdue University Center for Commercial Agriculture:&nbsp;<a href=\"http:\/\/purdue.edu\/commercialag\">http:\/\/purdue.edu\/commercialag<\/a><br>CME Group:&nbsp;<a href=\"http:\/\/www.cmegroup.com\/\">http:\/\/www.cmegroup.com\/<\/a><\/p>\n\n\n\n<p>Photo Caption:&nbsp;<br>Farmer sentiment rises as producers report improved financial conditions on their farms (Purdue\/CME Group Ag Economy Barometer\/James Mintert).&nbsp;<a href=\"https:\/\/www.purdue.edu\/uns\/images\/2023\/ageconomy-barometer2310LO.jpg\">https:\/\/www.purdue.edu\/uns\/images\/2023\/ageconomy-barometer2310LO.jpg<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There was a slight uptick in agricultural producers\u2019 sentiment in October, as the\u00a0Purdue University\/CME Group Ag Economy Barometer\u00a0index rose 4 points to a reading of 110. The modest improvement in farmer sentiment resulted from farmers\u2019 improved perspective on current conditions on their farms as well as their expectations for the future. The\u00a0Index of Current Conditions\u00a0rose&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-13447","post","type-post","status-publish","format-standard","hentry","category-media"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Farmer sentiment rises as producers report improved financial conditions on their farms<\/title>\n<meta name=\"description\" content=\"Agricultural producers\u2019 sentiment declined for the second month in a row, as the Purdue University\/CME Group Ag Economy Barometer index fell 9 points to a reading of 106 in September.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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