In the latest update to the Purdue University-CME Group Ag Economy Barometer Index, grower sentiment fell to its weakest reading since July 2022, down 19 points to a reading of 104 in May. The report said that the weak sentiment reading was fueled by declines in both of the barometer’s sub-indices and that crop price weakness helped trigger the sentiment decline. The Index of Future Expectations declined 22 points to 98, while the Index of Current Conditions fell 13 points below a month earlier to 116. 

The Farm Capital Investment Index also declined in May, falling 6 points compared to a month earlier to 37, its lowest reading since last November. Among the 76% of producers who said it’s a bad time for large investments, 67% said the key reasons are price increases for machinery and new construction and rising interest rates.