Growth expectations limited in Ag Economy Barometer
Half of producers in the latest Purdue University/CME Group Ag Economy Barometer expect their farm size to stay stagnant over the next five years or even reduce.
Purdue Ag Economist Michael Langemeier tells Brownfield at the same time, at least 10 percent of farmers plan to grow by at least 10 percent each year over same the timeframe. He expects expanding generational farms are a driver while others still struggle.
“There’s just tremendous difference in profit between farms and I think we have quite a few farms that are still struggling a little bit in terms of their net cash flow and they’re not able to expand and buy assets, where we have another group that’s in a better financial position,” he says.
The February survey was the first-time farmers were asked for their perspectives on plant-based alternatives.
“Sixty percent thought if the market share for these plant-based alternatives is relatively high, say 25 percent— that’s what we gave them in the question, net farm income is going to be lower,” he says.
Langemeier says alternative proteins will be an area of focus in future surveys, but for now more than half expect alternatives to make up 10 percent or less of total the protein market share.