Farmers are feeling less optimistic about the future of the ag economy, according to the latest survey from Purdue University.
“More people are pointing to lower crop and livestock prices as their top concern this month. That was chosen by 30 percent of the people in the survey,” says Dr. Jim Mintert, Director of the Purdue Center for Commercial Agriculture.
That was ranked as the Number Two concern overall for the 400 U.S. farmers who took part in the monthly Purdue Ag Economy Barometer survey, which was taken between Aug. 12-16, 2024.
He says that higher input costs remain as the Number One overall concern for farmers.
“But that really hasn’t changed over time. It was chosen by 33 percent. The relationship between ‘Lower Crop and Livestock Prices’ and ‘Higher Input Costs’ is the narrowest that gap has been since we have been collecting data,” according to Mintert.
“For example, a year ago, only 20 percent of the people in the survey chose ‘Lower Crop and Livestock Prices’ as their top concern. This month, it’s up to 30 percent—almost eclipsing that higher input cost,” he says.
Mintert adds that the drop in farm incomes will likely lead to fewer farmers deciding to spend money on their farm—such as building new barns or buying new equipment.
“Clearly, as we progress through 2024, more and more farmers are worried about farm profitability. That’s one of the reasons they’re thinking about holding back on investments,” says Mintert.
Dr. Michael Langemeier, Associate Director of the Purdue Center for Commercial Agriculture, points out that not all producers are feeling the squeeze from lower commodity prices, which is likely why ‘Higher Grain and Livestock Prices’ isn’t the Number One overall concern in their latest survey.
“Approximately 20 percent of the survey is cattle producers,” according to Langemeier. “They’re looking at some fairly good times right now, and so there is a group that are surveyed that are looking at fairly strong returns compared to the other 80 percent, and that’s pretty sobering.”
CLICK HERE to read the latest survey results.
CLICK BELOW to watch Dr. Jim Mintert and Dr. Michael Langemeier discuss the results of the latest Purdue Ag Economy Barometer survey.
