6pgs, Diesel prices are at record levels. The prices of dry fertilizer for corn are double what farmers paid last year. Planting progress sits at the slowest pace since 2013, with farm machinery parts on backorder or in short supply. The latest Ag Economy Barometer shows farmers’ concerns seem to be overshadowing current optimism about commodity prices hitting decade-highs.
The Purdue University-CME Group Ag Economy Barometer improved in April to a reading of 121, which was 8 points higher than a month earlier. Despite this month’s increase, the ag sentiment index remains 32% lower than its April 2021 reading. This month’s modest rise in the barometer was attributable to an improvement in ag producers’ perspective on their current situation as well as what they expect for the future. The Index of Current Conditions rose 7 points to a reading of 120 while the Index of Future Expectations rose 9 points to an index value of 122. Similar to the barometer, both the current conditions and future expectations indices remain well below year ago levels. Ongoing strength in commodity prices appeared to be responsible for the modest sentiment improvement, although producers’ concerns about both rising input costs and their difficulties in procuring inputs continues to hold back sentiment. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from April 18-22, 2022.
