Purdue University's Ag Economy Barometer rose 9 points in December, marking just the second rise in the overall sentiment index since May.
Both the Index of Current Conditions and the Index of Future Expectations rose in December with a stronger current conditions index primarily responsible for the barometer’s rise.
Producers’ improved perspective on their farms’ financial position appeared to be the primary driver of the sentiment improvement as the Farm Financial Performance Index climbed 7 points this month.
Unlike other measures of farmer sentiment, the financial performance index in December 2021 was higher than it was before the pandemic’s onset.
Agricultural producers are concerned about rising input costs with nearly half (47%) of producers choosing it as a top concern for 2022 and nearly four out of 10 respondents said they expect farm input prices to rise by more than 30% in 2022 compared to 2021.
Supply chain issues continue to haunt the nation’s agricultural sector. Forty-five percent of respondents said that tight farm machinery inventories impacted their machinery purchase plans and 39% of producers in this month’s survey said they’ve experienced difficulty in purchasing crop inputs for the 2022 crop season.
