The monthly Purdue University-CME Group Ag Economy Barometer reported a five-point decline in farmer sentiment in June, three points lower than in May.
The nationwide survey conducted June 17-21 highlighted farmers' concerns about high input costs and rising interest rates. Cited as a top concern, 23% of respondents believed rising interest rates posed a significant challenge, up from 18% in February.
The concern may be contributing to a decline in farmers' expectations. The survey reports a negative outlook on capital investments and long-term farmland values, both of which dipped.
It's easy to be "in the know" about agriculture news from coast to coast! Sign up for a FREE month of Agri-Pulse news. Simply click here.
"More producers this month said now is a bad time to make large investments than in May, with no change in the percentage of producers who said it’s a good time to invest," a summary stated.
The survey found a decline in conversations around farmland leases for solar energy production. In June, 16% of respondents reported such discussions in the last six months, compared to nearly 20% of farmers surveyed in May.
However, long-term lease rates are increasingly being offered. Some 69% of respondents said they were offered a long-term lease rate of $1,000 per acre or more, up from just 27% three years ago.
In response to both interest rates and solar factors, farmers' long-term farmland value outlook weakened slightly in June after approaching an all-time high in the previous month.
.png?1716326054)
