Farmer sentiment improved modestly in April as the Purdue University-CME Group Ag Economy Barometer reversed a two-month decline up 6 points to a reading of 123. Both the Index of Current Conditions and the Index of Future Expectations improved in April with the biggest rise taking place in future expectations.
When asked to look ahead one year, more producers said they expect to be better off financially than now with fewer respondents expecting conditions to worsen compared to both a month earlier and one year earlier.
The Farm Capital Investment Index remained mostly unchanged at a reading of 43, leaving the index 7 points higher than it was one year earlier.
Among the over 70 percent of respondents who continue to think it’s a bad time for large investments, the top two reasons cited continue to be the increase in prices for machinery and construction and rising interest rates. In a reversal from last month, more respondents chose rising equipment and construction costs (39%) than rising interest rates (33%) as a top reason for this being a poor time for large investments.
When asked what the most important title in the new Farm Bill would be to them, 40% of farmers said crop insurance, the highest percentage among respondents. The second-highest was commodity program at 31%.
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