According to the results of the latest Ag Economy Barometer update, the Farm Capital Investment Index remained at a record low reading in June.
The index reported a reading of 35, in line with the record low seen in last month's reading. Producers continue to view this as not being a good time to make large investments in their farm operation. One reason producers say it’s not a good time to make large investments is the problems they’ve experienced in the supply chain. For the second month in a row, 50% of producers in this month’s survey said that tight machinery inventories impacted their farm machinery purchase plans.
Just 8% of farmers said their plans for farm machinery purchases in the upcoming year were higher year-over-year, while 57% said their purchase plans were lower.
The Ag Economy Barometer itself fell to a reading of 97 vs. 99 last month, remaining near the lowest readings seen at the beginning of the pandemic. This was impacted by a decline in the index of future conditions to reading of 96, while the index of current conditions rose slightly.
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