According to the Jan. 3 update to the Purdue University Ag Economy Barometer, the barometer's reading rose to 126 in December, up from 102 in the month prior. The Current Conditions Index reached 135, 37 points higher than in November while the Future Expectations Index hit 122, 18 points above a month earlier.
The Farm Capital Investment index rose to a reading of 40 in December, which was its highest reading since February but down 9 points from December 2021.
Nearly 75% of respondents said now remains a bad time to make large investments into their farming operation, with their top reason remaining the rising prices of farm machinery and new construction. The percentage picking rising interest rates as their top reason to consider it a bad time to make new investments rose to 28% in the latest update, nearly double the percentage who said the same in July.