Farmers less optimistic about ag economy in April

WEST LAFAYETTE, Ind. — Farmers are concerned about financial performance and farmland values, as evidenced by a decrease in the April reading of the Ag Economy Barometer.

The barometer fell 15 points to its lowest reading since June 2022.

There is growing interest in using farmland for solar energy production, and solar lease rates appear to be increasing, according to the report.

In A Nutshell

• Farmers expect weaker financial performance compared to a year earlier.

• Farmers are less optimistic about farmland values — fewer farmers said they expect farmland values to rise over the next year.

• 19% reported discussing leasing farmland for solar energy production with a company.

• 8% of farmers who look for farmland values to rise in the upcoming year pointed to energy production on farmland as a supporting factor.

• Discussions around solar leasing suggest demand for solar leases is increasing, with 58% of farmers reporting lease rate offers exceeding $1,000 per acre — up from 54% in March.

• Rising lease rates for energy production could be starting to impact farmland values in some areas.

Read the complete report at https://tinyurl.com/ykmj9x5w.