You can love the land. You can value your investment in land. You can still believe that farmland is a valuable asset. But that doesn’t mean that you always feel the best about what is happening right now.
And right now, agricultural producers from across the country are losing a bushel of optimism according to the latest Ag Economy Barometer from the Purdue University Center for Commercial Agriculture.
In fact, farmer sentiment has dipped to the lowest level in about two years. The 15-point decline from April was described as “steep” in the survey’s results. Find the full report here.
Two heavy factors could be bringing down their short-term view.
--The USDA predicted that farm income will drop about 25% this year versus last year. For perspective: 2021-2023 produced the highest three-year period for incomes in history. But perspective does not pay the bills. And this is today, not yesterday.
RELATED: Read the American Farmland Owner story about the 2024 USDA projections for farm incomes here.
--Reality has also set in about when the Federal Reserve Board will lower borrowing rates. A June prediction by numerous observers appears to be premature. Fall harvest may arrive before a rate decrease does.
“Farmers’ sentiment took a significant hit in April, reflecting broader concerns about financial performance and farmland values,” said James Mintert, director of Purdue University’s Center for Commercial Agriculture.
“People became less optimistic about what was happening on their farm today. And they’re also starting to show some evidence of having concerns about where we’re headed over the course of the next year, Mintert said.
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