Farmers are more optimistic about capital investments, farmland values
Farmers are more inclined to make large investments in their farming operations right now, 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 new record high of 93, that was a 13-point jump in one month,” he says. “People feel pretty good about making large investments in their farming operation.”
He tells Brownfield producers surveyed are also optimistic about farmland values.
“We had the highest percentage we’ve ever had say they expect to see higher farmland prices over the next 12 months—that rose to 35 percent of people in the survey,” he says. “To put that in perspective back in April just 7 percent said they expect to see higher farmland values in the next 12 months.”
Farmers are even more optimistic about the longer-run perspective on farmland values. Sixty-five percent say they expect farmland values to rise over the next five years.
Audio: Jim Mintert