ASAC Webinar: Dr. Jim Mintert on the December 2022 Ag Economy Barometer
01/19/2023
Dr. Jim Mintert is a Purdue University Professor and is the Director of the Center for Commercial Agriculture in the Department of Agricultural Economics. On January 11th, Dr. Mintert presented a summary of the December 2022 Ag Economy Barometer in an ASAC webinar.
The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value. The index is based on a survey of 400 agricultural producers on economic sentiment each month. Quarterly, the index is accompanied by an in-depth survey of 100 agriculture and agribusiness thought leaders.
The survey is a telephone survey, and the participants are randomly selected from a large database. No farmer is included in the survey more than once per year, and the survey lasts only 5 minutes. The farmers are commercial farmers (those with over $500,000 in revenue).
December’s survey revealed that farmer sentiment about the ag economy grew from 102 in November to 126 in December. This improvement was motivated by producers’ stronger perception of current financial conditions on their farms. Dr. Mintert reported that, “The turnaround in the Financial Performance Index this month was driven by a sharp increase in the percentage of producers who expect better performance than last year which jumped from 23 to 35% of respondents.”
Overall, 2022 was a good year for farmers in the corn belt. Concerning making investments at this time, most farmers that are negative about making large investments say so because they can’t get a good deal. If they have to buy a piece of equipment or make a significant investment in facilities, they will make that purchase. They simply don’t like having to pay the current high prices for these investments and other inputs. Overall, farmer’s main concerns are the high cost of inputs and the higher interest rates they will have to pay.
Go to https://ag.purdue.edu/commercialag/ageconomybarometer/ to subscribe to receive the most recent barometer when it becomes available.
Posted by:
Don Tyler
ASAC Board Member
Tyler & Associates
Dr. Jim Mintert is a Purdue University Professor and is the Director of the Center for Commercial Agriculture in the Department of Agricultural Economics. On January 11th, Dr. Mintert presented a summary of the December 2022 Ag Economy Barometer in an ASAC webinar.
The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value. The index is based on a survey of 400 agricultural producers on economic sentiment each month. Quarterly, the index is accompanied by an in-depth survey of 100 agriculture and agribusiness thought leaders.
The survey is a telephone survey, and the participants are randomly selected from a large database. No farmer is included in the survey more than once per year, and the survey lasts only 5 minutes. The farmers are commercial farmers (those with over $500,000 in revenue).
December’s survey revealed that farmer sentiment about the ag economy grew from 102 in November to 126 in December. This improvement was motivated by producers’ stronger perception of current financial conditions on their farms. Dr. Mintert reported that, “The turnaround in the Financial Performance Index this month was driven by a sharp increase in the percentage of producers who expect better performance than last year which jumped from 23 to 35% of respondents.”
Overall, 2022 was a good year for farmers in the corn belt. Concerning making investments at this time, most farmers that are negative about making large investments say so because they can’t get a good deal. If they have to buy a piece of equipment or make a significant investment in facilities, they will make that purchase. They simply don’t like having to pay the current high prices for these investments and other inputs. Overall, farmer’s main concerns are the high cost of inputs and the higher interest rates they will have to pay.
Go to https://ag.purdue.edu/commercialag/ageconomybarometer/ to subscribe to receive the most recent barometer when it becomes available.
Posted by:
Don Tyler
ASAC Board Member
Tyler & Associates
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