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The latest report from the Purdue University/CME Group Ag Economy Barometer indicates that U.S. farmers’ inflation expectations have subsided while overall producer sentiment changed little.
The December barometer recorded a reading of 114, just one point lower than in November. Both subindices of the barometer, the Index of Current Conditions and the Index of Future Expectations, mirrored this slight decline, settling one point below their respective November figures at 112 and 115. Notably, farmers’ inflation expectations for the upcoming year were markedly lower than those reported a year ago for 2023. This month’s Ag Economy Barometer survey was conducted from Dec. 4-8.
Farmers reported another improvement in their farms’ financial performance during the month of December. The Farm Financial Performance Index saw a 2-point increase compared to the previous month, marking a continued positive trend. Since late summer, the index has climbed 11 points, and at year-end, it was 21 points above the low point for 2023, which occurred in May.
“The shift in farmers’ perception of financial performance during the fall quarter corresponds with USDA’s (U.S. Department of Agriculture’s) more optimistic 2023 farm income outlook released in late November, which was $10 billion higher than their previous forecast,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
SOURCE: PURDUE UNIVERSITY
