According to the Dec. 6 update to the Purdue University Ag Economy Barometer, the Farm Capital Investment Index, dropped back to a reading of 31. Just 10% of farmer respondents said now is a "good time" to make large investments in their farm operation and 79% said it was a bad time.
Among those who consider it a bad time to make investments, 47% chose “rising prices of farm machinery and new construction” as the primary reason for their perspective, up from 40% in the previous update. Some 19% chose rising interest rates and 10% chose "uncertainty about farm profitability," down from 17% in the previous update.
The Ag Economy Barometer remained unchanged with a reading of 102. "There was however a slight shift in underlying sentiment as the Index of Current Conditions declined 3 points this month to a reading of 98 while the Index of Future Expectations rose 2 points to 104," the report said.