Producers more optimistic about large farm investments
Producers are more optimistic about making large investments in their farming operations, according to the latest Purdue University/CME Group Ag Economy Barometer.
Jim Mintert is the director of the Purdue Center for Commercial Agriculture.
“The Farm Capital Investment Index rose to a reading of 60, from 50 a month earlier, and going back to April when it bottomed out it was at 38,” he says. “That’s a significant improvement.”
Farmers were also asked if they plan to buy farm machinery in the upcoming year.
“Fifty-five percent of the people in the survey said they plan to reduce their farm machinery purchases in the upcoming year compared to the prior year, but that percentage rose in April and May to over 60 percent,” he says.
Mintert says that suggest farmers are more and more optimistic about making purchases.