This month, 39% of respondents cited “rising equipment and construction costs” while 33% cited “rising interest rates” as the top reason for now being a bad time for such investments. The Farm Capital Investment Index increased one point to a reading of 43 in April yet more than 70% of respondents continue to feel now is a bad time for large investments. However, the biggest shift was a decline in the percentage of respondents who expect rates to rise between 1% to 2% in the next year, down 6 points since February to 37%. At the same time, two-thirds (66%) of producers expect interest rates to keep rising, compared to 75% of respondents who felt that way in February. prime interest rate to remain unchanged or decline over the next year, compared to 25% of producers who felt that way in February. In April, 34% of respondents said they expect the U.S. commercial banks increased from 7.75% in January to 8% in late March, and since the February barometer survey, there has been a noticeable shift in farmers’ interest rate expectations. The Farm Financial Performance Index also improved this month, up 7 points to a reading of 93. “A shift in farmers’ expectations regarding the Fed’s future interest rate policy could be a key reason.” “Producers held a more optimistic view of the agricultural economy in April,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture. This month’s survey was conducted between April 10-14. agricultural producers’ responses to a telephone survey. The Ag Economy Barometer is calculated each month from 400 U.S. Both of the barometer’s sub-indices were also higher in April, the Current Conditions Index was up 3 points to 129 and the Future Expectations Index was up 7 points to 120. and CHICAGO - Farmer sentiment improved modestly in April as the Purdue University/CME Group Ag Economy Barometer rose 6 points to a reading of 123. Farmer sentiment improves less pessimism over interest ratesįarmer sentiment improves less pessimism over interest rates (Purdue/CME Group Ag Economy Barometer/James Mintert).
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