The Farm Capital Investment Index was unchanged in April, despite an improved financial performance outlook, according to the latest Ag Economy Barometer update from Purdue University.
"April’s investment index reading of 36 left the index at it’s all-time low, one point below the previous low reading observed in May 2019. Follow-up questions revealed that producers were a bit less pessimistic in April about both their machinery purchase and new construction plans in the upcoming year compared to responses received in the March survey. But supply chain problems remain a key reason many producers feel now is not a good time to make large investments in their farming operation," the report said.
The percentage of growers planning to reduce their farm machinery purchases this year vs. 2021 came in at 57%, down from 62% in the previous update. The report stated "Once again, just over 40% of producers said their farm machinery purchase plans were impacted by low machinery inventories. The rising cost of all inputs, including machinery, buildings, and grain bins, is likely another factor causing producers to say now is not a good time for large investments."
The Ag Economy Barometer itself rose 8 points to a reading of 121. The Index of Current Conditions rose 7 points to a reading of 120 while the Index of Future Expectations rose 9 points to an index value of 122.