Farmer sentiment improved in April with commodity prices spiking amid Russia’s war in Ukraine, but producers are increasingly worried about the steep increases in input costs, a monthly survey shows.
The Purdue University-CME Group Ag Economy Barometer rose eight points to 121 in April, but that is 32% lower than the score a year earlier.
“Ongoing strength in commodity prices appeared to be responsible for the modest sentiment improvement, although producers’ concerns about both rising input costs and their difficulties in procuring inputs continues to hold back sentiment,” according to the barometer report.
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Some 42% of the farmers surveyed said that higher input costs were their biggest concern. And 60% of the survey respondents expect input prices to rise by 30% over the next year. By comparison, an average of 37% of farmers surveyed from December through March predicted input prices would rise by that much.
When asked specifically about input prices for 2023 crops, 36% of farmers expect cost increases of at least 10% and 21% believe they’ll rise at least 20%.
The index is compiled from telephone surveys of 400 farmers. The latest survey was conducted from April 18-22.
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