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Farmer sentiment rises as lower crop price risks ease

By Clayton Baumgarth

Posted November 13, 2023

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

Farmer sentiment saw a slight uptick in October, thanks to decreased concerns about low crop and livestock prices.

The Ag Economy Barometer index rose four points as producers expressed slight optimism about current and future prospects on their farms. The report cited higher-than-expected corn and soybean yields as well as a modest rally in corn prices as causes for the increase.

The Farm Financial Performance Index was at its highest reading since April; it is 7 percent above its reading from last year. This increase stands in contrast to the USDA forecast for 2023 net farm income below the previous year.

Despite the perception that financial conditions are stronger than the previous month, the Farm Capital Investment Index fell to its lowest rating of the year. Three-quarters of respondents said it is a bad time to make large investments in farm operations.

This month’s survey also asked producers if they are making changes in their farming habits due to long-term weather pattern changes; only 24 percent responded yes. Those producers said they’ve done things such as increasing the use of no-till, changing the mix of crops planted, using more drought resistant varieties of crops, and installing irrigation and tile drainage in their fields.