Farmer sentiment weakened slightly in December as the Purdue University/CME Group Ag Economy Barometer Index dropped three points to a reading of 136. Weakness in the barometer was attributable to a modest decline in producers’ long-term outlook, as the Future Expectations Index fell to 140, four points lower than the previous month. The Current Conditions Index was unchanged from November at 128.
Angst about the prospects for U.S. soybean exports amid increasing competition from Brazil contributed to a slightly weaker outlook for the future among crop producers. Producers’ expectations for their farms’ financial performance changed little compared to November, as the Financial Performance Index rose just two points to 94. The Farm Capital Investment Index also increased two points to 58 in December. Even with the slight rise, 60 percent of producers said it was still a bad time to make large investments in their farms.
-NAFB