Ag Economy Barometer: Farmers start new year more optimistic about ag economy

WEST LAFAYETTE, Ind. — Farmers are starting the year off more optimistic about the ag economy.

According to the Purdue University-CME Group Ag Economy Barometer, the index was 34% higher than its 2022 low point last June.

“Although producers were a bit more optimistic about the future this month, they again reported expectations for tighter margins in 2023 than in 2022,” the report states.

“Just over one out of five producers expect to have a larger operating loan in 2023 than in 2022, with higher operating expenses being the most commonly cited reason.”

Producers appear to be entering 2023 in a strong financial position despite the rise in production costs.

The percentage of producers who reported the reason for a larger operating loan in the upcoming year declined for the third year in a row, dipping to just 5% in 2023.

“U.S. farmers continue to express interest in and engage in discussions with companies offering carbon contracts, although to date just 1% of producers report having signed a carbon contract,” said the report.

Read the report at https://tinyurl.com/542pbbuh.