Ag Economy Barometer: Farmers concerned about Ukraine war, impact on ag

WEST LAFAYETTE, Ind. — The invasion of Ukraine may have impacts on agriculture in the United States, and farmers have some concerns, according to the Purdue University Ag Economy Barometer.

“We asked producers what they expect to be the biggest change for U.S. agriculture as a result of the war in Ukraine,” said James Mintert, director of the Center for Commercial Agriculture at Purdue.

“Sixty-three percent said input prices would be the most likely factor affected, followed by crop prices at 33%.”

Separate from the war, producers are concerned about the 2022 crop year.

Forty-one percent of producers said high input prices were their No.1 concern, followed by availability of inputs at 19% and low crop or livestock prices at 19%.

“Producers continue to expect 2022 to be a much worse year than 2021,” Mintert said. “The Farm Capital Performance Index declined 6 points to a reading of 36. That’s a new all-time low.

“Supply chain issues continue to be a problem. Over 40% of producers say their purchases have been impacted by low farm machinery inventory levels.”

The overall Ag Economy Barometer declined to a reading of 113 this month, down from 125 last month.

“That’s the lowest reading for the barometer since May 2020,” Mintert said. “The Index of Current Conditions and the Index of Future Expectations both declined. The Farm Financial Performance Index rose slightly this month to a reading of 87, compared to 83 last month, but remains well below where it was last year when it reached 113.”

Read the full Ag Economy Barometer report at purdue.ag/agbarometer.