The Purdue University/CME Group Ag Economy Barometer fell in November, as producers expressed concerns about growing production costs and fluctuating commodity prices, according to a release.
The barometer, a monthly survey that tracks producer sentiment, decreased 5 points in November to a reading of 116. According to the release, rising costs for fertilizer, farm machinery, seed and fuel are increasingly a concern for farmers, as 43% of the survey's 400 respondents said they expect farm input prices to rise by more than 16% in the upcoming year.
Additionally, 82% of responding producers said they expect to see the government impose more restrictive environmental regulations, while 74% expect higher estate taxes and 77% expect higher income taxes in the years ahead.
"Farmers are facing sharp rises in production costs coinciding with fluctuating crop and livestock prices, the prospect of changing environmental and tax policy, uncertainty over COVID-19, as well as a host of other issues, all of which are negatively impacting farmer sentiment," James Mintert, the barometer's principal investigator and director of Purdue University's Center for Commercial Agriculture, said in the release.
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According to the release, November was the "lowest reading of 2021 for all three measures of producer sentiment." In addition, it was 30% lower than it was in November of last year.
However, the Farm Financial Performance Index rose 2 points, a 10% increase from its low reading of 96 in June.
"Compared to late spring, strong crop yields for fall harvested crops and strength in wheat prices helped push 2021 crop revenue and profitability estimates, compared to one year ago," Mintert said.
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