“The improvement in the barometer was driven by increases in both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations,” explained Jim Mintert, director of the Center for Commercial Agriculture at Purdue.
Farmers were more favorable about making large investments on their farms, Mintert said.
Farmers also were more optimistic about farmland prices.
“When we asked about their expectations for farmland prices 12 months ahead, 16% of them said they expect to see higher prices over the next year, compared to 11% last month,” Mintert said.
“When we asked them to look ahead five years, 53% of the respondents in our survey said they expected to see higher farmland values five years from now, compared to 49% a month earlier.”
Farmers were asked about their planting plans next spring.
Approximately 25% of corn and soybean producers said they did not plan to increase or decrease their acreage of those two crops in 2020.
However, 14% of corn growers and 12% of soybean growers in the survey said they intended to increase their acreage of those two crops, respectively.
Read the full October Ag Economy Barometer report at: https://purdue.ag/agbarometer.