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Farmer sentiment continues to improve in November

By Clayton Baumgarth

Posted December 6, 2023

The Ag Economy Barometer year-over-year. (Courtesy of Purdue Agricultural Communications)

Farmer sentiment increased for the second consecutive month in November thanks to improved outlooks on financial conditions.

The Ag Economy Barometer index rose five points with fewer producers expecting worse performance in their farms than a year ago. The report said that of those who believe the investment climate is favorable, 22 percent say they feel that way due to strong cash flows, while 29 percent say it’s because of higher dealer inventories.

Top concerns for producers in the upcoming year include higher input costs, rising interest rates, and lower crop and livestock prices. Since the beginning of the year, concerns about higher input costs have been gradually eased as the latter two have become more prominent.

The November survey also included questions regarding Congress’s decision to extend the 2018 Farm Bill. Producers were asked about their preference on farm safety net programs for 2024, with over two-thirds of respondents preferring the Agricultural Risk Coverage program over the Price Loss Coverage program.