According to the latest update to the Ag Economy Barometer from Purdue/CME Group, the Farm Capital Investment Index hit another record low reading in September at 31, with producers continuing to indicate they do not view this as a “good time” to make large investments in their farming operations

farm capital investment index october 2022

Among those farmers who believe it's a bad time to make large investments, the percentage choosing rising interest rates as the primary reason has risen from 14% in July to 21% in September. The percentage citing increasing farm machinery prices as the primary reason has remained above 44% since July.

primary reason october 2022

At the same time, however, the percentage of farmers saying they plan to lower their farm machinery purchases plans for the coming year has been declined for 3 months in a row, from 57% in June to 47% in September.

plans for farm machinery purchases october 2022

The Ag Economy Barometer index drifted lower to a reading of 112 in September which was 5 points lower than a month earlier. The decline in farmer sentiment was primarily the result of producers’ weaker perception of current conditions as the Current Conditions Index declined to 109, 9 points lower than in August. The Index of Future Expectations also weakened slightly, declining 3 points from a month earlier to a reading of 113. 

ag economy barometer october 2022
ag economy barometer indices october 2022