Farm sector debt has reached levels near the peak levels of the late 1970s and early 1980s. High levels of debt increase a farm’s risk of going out of business. From 1993 to 2017, real (inflation-adjusted) farm debt increased by 87%, or 4% per year on average.

After two consecutive years of solid growth, equipment and software investment growth is likely to slow in 2019 to 3.9%, according to the Q3 update to the 2019 Equipment Leasing & Finance U.S. Economic Outlook released today by the Equipment Leasing & Finance Foundation.

Following a famously difficult planting season in the U.S., the USDA June Acreage Report showed a surprising increase in corn acres planted year-over-year, up 3% compared to June 2018.

The Ag Economy Barometer rebounded in June to a reading of 126, 25 points higher than a month earlier. The barometer is based upon a nationwide monthly survey of 400 U.S. agricultural producers. Both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, improved compared to a month earlier.

The Equipment Leasing & Finance Foundation released the June 2019 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) last week. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market was 52.8, easing from the May index of 59.2.

The 2019 Precision Farming Dealer benchmark study reflects an optimistic outlook from dealers in 2018. At the same time, the report shows weaker sentiments than reported in 2017. This continues a reversal from the upward trend started in 2016 and instead marks a slight pullback in overall market sentiment and revenue growth.

The FCA (Farm Credit Administration) recently released its quarterly analysis of the agriculture sector, including its tracking of commodity prices, margins, farm programs, and crop insurance.

The most recent Beige Book (May 2019) released by Federal Reserve System included conditions impacting agriculture throughout the country. Overall, it found that agricultural conditions “remained weak” although “a few Districts reported some improvements.”