{"id":13472,"date":"2023-12-05T10:00:00","date_gmt":"2023-12-05T14:00:00","guid":{"rendered":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/?p=13472"},"modified":"2023-12-04T12:41:48","modified_gmt":"2023-12-04T16:41:48","slug":"media-farmer-sentiment-improves-producers-credit-stronger-financial-conditions","status":"publish","type":"post","link":"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/media-farmer-sentiment-improves-producers-credit-stronger-financial-conditions\/","title":{"rendered":"Farmer sentiment improves, producers credit stronger financial conditions"},"content":{"rendered":"\n<p>Agricultural producers\u2019 sentiment increased for the second consecutive month, as the <a href=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/\">Purdue University\/CME Group Ag Economy Barometer<\/a> index rose 5 points to a reading of 115, a 12% increase compared to the previous year. The sentiment growth is largely attributed to farmers\u2019 improved perceptions of their farms\u2019 financial conditions and prospects. This month\u2019s Ag Economy Barometer survey was conducted from November 13-17, 2023.<\/p>\n<div id=\"attachment_13473\" style=\"width: 310px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-13473\" class=\"wp-image-13473 size-medium\" src=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/12\/AgEconomyBarometer_November2023-300x218.jpg\" alt=\"Farmer sentiment improves as producers credit stronger financial conditions (Purdue\/CME Group Ag Economy Barometer\/James Mintert). \" width=\"300\" height=\"218\" srcset=\"https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/12\/AgEconomyBarometer_November2023-300x218.jpg 300w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/12\/AgEconomyBarometer_November2023-1024x743.jpg 1024w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/12\/AgEconomyBarometer_November2023-768x557.jpg 768w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/12\/AgEconomyBarometer_November2023-1536x1115.jpg 1536w, https:\/\/ag.purdue.edu\/commercialag\/ageconomybarometer\/wp-content\/uploads\/2023\/12\/AgEconomyBarometer_November2023-2048x1486.jpg 2048w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><p id=\"caption-attachment-13473\" class=\"wp-caption-text\">Farmer sentiment improves as producers credit stronger financial conditions (Purdue\/CME Group Ag Economy Barometer\/James Mintert).<\/p><\/div>\n<p>The <em>Index of Current Conditions<\/em> rose 12 points to 113 while the Index of Future Expectations improved by 2 points to 116. The <em>Farm Financial Performance Index<\/em> also rose in November to a reading of 95, which is up 3 points from October. The financial index reached its low point back in the spring. The November reading was 25% higher than in May and 10% higher than at the start of fall harvest in September.<\/p>\n\n\n\n<p>\u201cFarmers\u2019 expectations regarding financial performance have improved, with fewer producers\u2019 expecting worse performance than a year ago,\u201d said&nbsp;<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>The Farm Capital Investment Index has fluctuated throughout 2023 but rebounded this month to a reading of 42, up 7 points from October. Over the last several months, producers who view the investment climate as favorable were asked why they feel that way. The percentage of respondents choosing \u201cstrong cash flows\u201d has been drifting lower since summer when approximately 40% of respondents chose that as their primary reason. This month just 22% of respondents chose \u201cstrong cash flows\u201d with \u201chigher dealer inventories,\u201d chosen by 29% of respondents, claiming the top spot as to why now is a good time to make large investments, implying a potential change in market conditions.<\/p>\n\n\n\n<p>\u201cThis shift suggests that farmers might be seeing a moderation in farm equipment price rises, making it a more favorable time for large investments,\u201d said Mintert.<\/p>\n\n\n\n<p>In November, perspectives on farmland values changed little compared to October. The <em>Short-Term Farmland Values Expectations Index<\/em> maintained its position at 125, while the long-term index fell 5 points. Among respondents who expect farmland values to rise over the next five years, they overwhelmingly attribute their optimism to non-farm investor demand, followed by inflation.<\/p>\n\n\n\n<p>Top concerns for the upcoming year include higher input costs (32%), rising interest rates (26%) and lower crop and\/or livestock prices (20%). Notably, there has been a shift in concern throughout the year, with fewer producers expressing worry over higher input costs compared to the beginning of the year. Instead, more producers are now concerned about rising interest rates and lower crop and livestock prices.<\/p>\n\n\n\n<p>This month\u2019s survey was conducted the same week that Congress voted to extend the 2018 Farm Bill\u2019s provisions to September 30, 2024. Anticipating the extension by Congress, the November survey gauged the preferences of corn and soybean producers regarding farm safety net programs for 2024. Over two-thirds of respondents expressed a preference for the ARC farm program, while nearly one-third leaned towards enrolling in the PLC program, assuming the extension of the current Farm Bill\u2019s provisions. Despite preferences emerging, uncertainty prevails, particularly for soybean (52% declining to choose) and corn (43% declining to choose) producers when deciding to choose between programs.<\/p>\n\n\n\n<p><strong>About the Purdue University Center for Commercial Agriculture<\/strong><\/p>\n\n\n\n<p>The\u00a0<a href=\"https:\/\/ag.purdue.edu\/commercialag\/home\/\"><a href=\"https:\/\/ag.purdue.edu\/commercialag\/home\/\">Center for Commercial Agriculture<\/a><\/a>\u00a0was 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\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.\u00a0The 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.<\/p>\n\n\n\n<p>Writer: Erin Robinson,\u00a0<a href=\"mailto:erobin@purdue.edu\">erobin@purdue.edu<\/a>\u00a0\u00a0\u00a0<br>Source: James Mintert, 765-494-7004,\u00a0<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 improves as producers credit stronger financial conditions (Purdue\/CME Group Ag Economy Barometer\/James Mintert).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Agricultural producers\u2019 sentiment increased for the second consecutive month, as the Purdue University\/CME Group Ag Economy Barometer index rose 5 points to a reading of 115, a 12% increase compared to the previous year. The sentiment growth is largely attributed to farmers\u2019 improved perceptions of their farms\u2019 financial conditions and prospects. This month\u2019s Ag Economy&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-13472","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 improves, producers credit stronger financial conditions<\/title>\n<meta name=\"description\" content=\"Agricultural producers\u2019 sentiment increased for the second consecutive month, as the Purdue University\/CME Group Ag Economy Barometer index rose 5 points in November 2023.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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