The Purdue University Ag Economy Barometer declined sharply for the second month in a row as producers’ perception of current conditions and future expectations for their farming operations declined.
In June, farmers became noticeably more concerned that their farms’ financial performance will be weaker than a year earlier as the Farm Financial Performance Index fell 24% in just one month. Farmers expect their input costs to rise much more rapidly in the year ahead than they have over the last decade contributing to their concerns about their farm finances.
Among corn and soybean producers nearly one-half expect to see farmland cash rental rates rise over the next year and among those who expect rates to rise, there is an expectation that rates will rise sharply. Farms that normally hire non-family labor reported more difficulty in hiring labor this year than in 2020 which also contributed to some producers’ anxiety.
Finally, approximately 9% of all the farms in our survey reported that they have engaged in discussions with a company about leasing some of their farmland for a solar energy project while slightly less than 3% of all farms in the June survey said they have signed a solar lease for some of their farmland.
