Increase in sentiment among American farmers registered, but costs and inflation are still major concerns

August figures of The Purdue University/CME Group Ag Economy Barometer index, which evaluates the health of the agricultural economic segment, rose to the level of 117, and it is 14 points higher than the July measurements.

Such figures indicate the improving of sentiment within the agricultural sphere, as it reflects the increase of several key indices. The Index of Current Conditions has increased by 9 points, reaching the level of 118, while the Index of Future Expectations has risen to the level of 116.

In August, the U.S. farmers were reported to be less concerned about financial conditions of their farms than a month ago, although the cost/price ratio is still worrying them. More than a half of the farmers who took part in the survey admitted that the growing input costs are the most serious concern of the following year.

Interest rate hikes, input availability and declining prices for their products were also mentioned as other important issues of concern by 14%, 12% and 11% of respondents, respectively.

Despite indicating a growing optimism among farmers, the indices are still significantly lower than the last year’s measurements. The updated information on The Purdue University/CME Group Ag Economy Barometer index are posted monthly, and the calculations are made on the basis of about 400 agricultural producers responding to a survey via the telephone. Last month, the survey was held from 15 to 19 August 2022, after the release of main reports by the U.S. Department of Agriculture.