Farmers are becoming more optimistic about the agricultural economy, although concerns about production costs haven’t gone away. The Purdue University-CME Group Ag Economy Barometer climbed nine points in August to a reading of 135. Most of that improvement came from expectations about the future. The Future Expectations Index jumped 11 points, while the Current Conditions Index gained only one.

For the first time since June of last year, more farmers expect their operations to be financially better off a year from now than worse off. Twenty-eight percent expect improvement, compared with 24 percent expecting conditions to deteriorate. Higher input costs remain the number-one concern, cited by 45 percent of producers. Farmers also became less willing to make major capital purchases. Farmland remains a bright spot, however, with 65 percent of producers surveyed saying agricultural land continues to be a good investment.

By: NATHAN STUEDLEFarmers are becoming more optimistic about the agricultural economy, although concerns about production costs haven’t gone away. The Purdue University-CME Group Ag Economy Barometer climbed nine points in August to a reading of 135. Most of that improvement came from expectations about the future. The Future Expectations Index jumped 11 points, while the Current Conditions Index gained only one.For the first time since June of last year, more farmers expect their operations to be financially better off a year from now than worse off. Twenty-eight percent expect improvement, compared with 24 percent expecting conditions to deteriorate. Higher input costs remain the number-one concern, cited by 45 percent of producers. Farmers also became less willing to make major capital purchases. Farmland remains a bright spot, however, with 65 percent of producers surveyed saying agricultural land continues to be a good investment.

Farmer sentiment improves for second straight month