Farm economy barometer drops amid producer concerns about rising input costs

The Purdue University / CME Group Agricultural Economics Barometer fell in November, with producers expressing concerns over rising costs of production and fluctuating commodity prices, according to a Release.

The barometer, a monthly survey that tracks producer sentiment, fell 5 points in November to 116. farmers, because 43% of the 400 survey respondents said they expected agricultural input prices to increase by more than 16% in the coming year.

Additionally, 82% of producers surveyed said they expect the government to impose more restrictive environmental regulations, while 74% expect higher property taxes and 77% expect higher property taxes. income in the years to come.

“Farmers face a sharp increase in production costs coinciding with fluctuating crop and livestock prices, the prospect of a change in environmental and fiscal policy, uncertainty over COVID-19, as well as a host of other issues, all of which negatively impact farmer sentiment, “James Mintert, senior barometer researcher and director of the Center for Commercial Agriculture at Purdue University, said in the statement.

According to the statement, November was “the lowest reading of 2021 for all three measures of producer sentiment.” In addition, it was 30% lower than it was in November of last year.

However, the agricultural financial performance index rose 2 points, a 10% increase from its low reading of 96 in June.

“Compared to late spring, strong fall crop yields and strong wheat prices have helped drive up crop income and profitability estimates for 2021, compared to a year ago ”Mintert said.

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