The March update to the Ag Economy Barometer from Purdue University and CME Group saw the farm capital investment index rise 1 point in February to a reading of 43.
"Weak capital investment readings have been the norm for nearly 2 years, despite strong farm income," the report said. "Seventy-two percent of producers in this month’s survey said it is a 'bad time' to make large investments in their farming operation while just 15% reported it is a 'good time' to make such investments. The disparity between responses to the barometer’s investment question and actual farm equipment sales continues to be focused on costs.
"The percentage of respondents focused on rising interest rates as a key reason has doubled since last July when this question was first included in a barometer survey."
The Purdue University-CME Group Ag Economy Barometer Index dipped 5 points in February to a reading of 125. Farmers’ perspectives regarding both current conditions on their farms and their expectations for the future both weakened slightly as the Index of Current Conditions fell 2 points to 134 and the Index of Future Expectationsdeclined to 121 compared to 127 in January.
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