The Monthly Ag Economy Barometer rose four points in August to 138. The modest rise was primarily attributable to an improvement in the Current Conditions Index, which climbed 9 points to 152. The Index of Future Expectation rose two points to 132.
Although the barometer and its two key sub-indexes improved in August compared to July, all three indexes remain well below readings posted this last spring. The barometer follows USDA’s report that farm net income and expenses are rising, and producers are becoming increasingly concerned about rising input costs.
On the August survey, 39 percent of respondents said they expect input prices to rise by eight percent or more, up from 30 percent who felt that way both in June and July. One in five producers expect farm input price inflation to exceed 12 percent. Additionally, a majority of corn and soybean producers expect a significant rise in farmland cash rental rates for 2022.
The National Association of Farm Broadcasting and the American Farm Bureau Federation contributed to this report.