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Farmers' sentiments remain unchanged after midterms

By Clayton Baumgarth

Posted December 8, 2022

The cost of equipment and repairs are also hurting farmers' outlooks. (Clayton Baumgarth - WFIU/WTIU)

Unlike the two most recent presidential elections, the November mid-term election results did little to swing farmer sentiment, which remained unchanged from October. That is according to the Purdue University/CME Group Ag Economy Barometer. 

The barometer is a monthly telephone survey that gathers information from 400 U.S. agricultural producers. It measures farmers’ opinions on how their businesses are going and how they think they will perform in the coming year. 

Michael Langemeier, a professor of agricultural economics at Purdue, isn’t particularly surprised with the barometer’s reading.  

“One of the questions we've been asking the last several months, and they've been answering this question very consistently: what are your biggest concerns?” he said. “Eighty percent of their concerns are related to inputs, input costs, interest rates, and input availability. And so that's really weighing on producers’ minds.” 

Input costs, like the price of diesel and fertilizer, have increased 15% - 20% over the last year. Langemeier also said the cost of machinery and repairs has farmers worried. 

Read more: A variable harvest turns out mostly positive for Indiana farmers

Another interesting finding was related to whether farmers expected their business to grow over the next five years. 

“I was a little surprised at this answer: 60% said they had no intention of growing, they were either not going to grow, or they're going to reduce their farm size,” Langemeier said. “And again, we're talking about full-time producers here.” 

Langemeier said that farmers’ aversion to grow is a head scratcher. The years 2020 and 2021 set records for many farmers, and big years like those typically spur more growth. 

“I wonder if part of that 60% is just thinking, well, things are so expensive right now, I'm going to see if this continues, and then perhaps expand later,” he said. 

As long as input costs continue to be high, it seems farmer sentiment will stay pessimistic at best. 

Read more: Inflation turning some Hoosiers into hunters

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