Purdue University's Ag Economy Barometer and its principal sub-indices, the Index of Current Conditions and Index of Futures Expectations, declined in May.
The Ag Economy Barometer declined 20 points in May to 158 which is the lowest barometer reading since September 2020 when the index stood at 156.
The Index of Current Conditions and the Index of Future Expectations declined this month. The May Current Conditions Index fell to 178, 17 points lower than a month earlier, while the Future Expectations Index of 149 was 20 points below its April reading.
Producers were less confident about their farms’ financial performance than a month earlier and also less inclined to think now is a good time to make large investments in their farming operation, particularly in items such as new buildings and grain bins.
Producers were much more inclined to think crop producers will have good times in the next five years than livestock producers and, in turn, remain very bullish about farmland values.
Reflecting expectations for a strong crop sector, two-thirds of corn and soybean producers expect farmland cash rental rates to rise in 2022 compared to 2021.
Finally, farmers remain very concerned about possible changes in tax policy being considered by Congress, especially changes that could make it more difficult to pass their farm on to the next generation.
