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Agricultural producers’ sentiment declined for the second month in a row during September as the Purdue University-CME Group Ag Economy Barometer fell 9 points to a reading of 106. Producers expressed concern about both their current situation as well as future prospects for their farms.

�ճ����Current Conditions�����Ի���Futures Expectations Indices both declined 10 points in September leaving the Current Conditions Index at a reading of 98 while the Future Expectations Index stood at 109. Weakening prices for major crops and ongoing concerns about high production costs and interest rates weighed on producers’ minds this month.

Producers continue to point to high input costs as a top concern for their farming operations in the year ahead, with nearly one-third of respondents in this month’s survey saying that it’s their number one concern. Nearly tied for second place this month were rising interest rates, chosen by 25% of respondents, and lower crop and/or livestock prices, chosen by 22% of farmers in this month’s survey. The percentage of producers choosing lower crop and/or livestock prices has increased since the beginning of the year when just 16% of producers cited it as a top concern.

The September survey included several questions posed to corn and soybean growers to learn more about their perspective on cover crops. Just over half (52%) of the corn/soybean growers said they currently plant cover crops on a portion of their acreage. However, of this group, nearly half (47%) of them said they used cover crops on no more than 25% of their acreage. Among those who reported having used cover crops, 41% of respondents said they had used cover crops for 5 years or less, while 14% said they’ve been using cover crops for more than 20 years. The top two reasons cited by cover crop users for planting cover crops were improves soil health and improves erosion control.

Summary: Farmer sentiment weakened in September as the Ag Economy Barometer fell 9 points from its August reading. The dip in farmer sentiment was attributable to producers’ concerns about both the current situation and the future as both the Current Conditions�����Ի���Future Expectations indices declined. Worries about the risk of declining prices for crops and livestock along with ongoing concerns about high input costs and interest rates weighed on producer sentiment this month. Despite the weak sentiment reading, producers remain relatively optimistic about farmland values as expressed by both the short and long-term farmland values indices. 

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