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 Expectations rose just two points to 132. Although the barometer and its two key sub-indices improved in August compared to July, all three indices remain well below readings posted this past spring.
The barometer follows last week’s USDA report that farm net income and expenses are rising, and producers are becoming increasingly concerned about rising input costs.
On the August survey, 39% of respondents said they expect input prices to rise by 8% or more, up from 30% who felt that way in both June and July. One in five producers expect farm input price inflation to exceed 12%. Additionally, a majority of corn and soybean producers expect a significant rise in farmland cash rental rates for 2022.
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