According to the results of the latest Ag Economy Barometer, the Farm Capital Investment Index dropped to a reading of 36, the lowest reading recorded in the last 6 years.
Tight machinery inventories continue to be a problem. In February, over 40% of producers stated that low farm machinery inventories are holding back their investment plans, according to Purdue University's Ag Economy Barometer.
U.S. farmers' sentiment weakened following the November 2020 elections, as the Purdue University-CME Group Ag Economy Barometer fell 16 points from a month earlier to a reading of 167.
Farmer sentiment in July was virtually unchanged from a month earlier as the Purdue University-CME Group Ag Economy Barometer rose just one point to a reading of 118. The small change in the barometer left it 30% below its February 2020 peak and 23% below its level a year ago.
Farmer sentiment improved slightly in May after falling sharply in both March and April. The Purdue University-CME Group Ag Economy Barometer reading in May was 103, up 7 points from the April reading of 96.
Farmer’s perception of an improving ag economy going forward could be laying the groundwork for increased capital investments in the year ahead, according to the results of the Purdue University-CME monthly farmer survey.
The Purdue/CME Ag Economy Barometer rose in November for the second month in a row, climbing to 153, 17 points higher than in October when the index stood at 136. This month’s rise in the ag economy sentiment index left the barometer tied with July for the highest barometer reading of 2019.
The Ag Economy Barometer rebounded in June to a reading of 126, 25 points higher than a month earlier. Both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, improved compared to a month earlier.
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