Farmer sentiment took a downturn at the start of 2024 as the January Purdue University-CME Group Ag Economy Barometer Index fell to a reading of 106.

U.S. farmers’ sentiment changed very little in December compared to the preceding month.

The result was driven by producer concerns about current conditions and future prospects, specifically weakening crop prices coupled with high production costs and interest rates. 

Top concerns among producers continue to be high input costs and rising interest rates.

Nearly three-fourths of respondents said they view this as a bad time to make large investments in their farm operation while just 16% of producers this month said it’s a good time to make investments. 

The investment index fell 6 points compared to a month earlier, pushing it down to 37, its lowest reading since last November. 

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.

The Purdue University-CME Group Ag Economy Barometer Index rose again in January, to a reading of 130, 4 points above its 2022 year-end index value.