Farmers Pull Back Slightly on Plans to Buy Equipment

U.S. farmer sentiment weakened in November. The Purdue University-CME Group Ag Economy Barometer fell 16 points from October to a reading of 167.

The decline in the Ag Economy Barometer was the result of farmers’ weakened expectations for the future. Perceptions of current conditions improved by nine percentage points amid the ongoing rally in agricultural commodity prices.

Farmers remained relatively optimistic about making large investments in their operations.

The Farm Capital Investment Index changed little in November with a reading of 80, just two points below the index’s record high set in October. However, survey respondents pulled back somewhat.

In November, 10 percent of farmers said they planned to increase their farm machinery purchases compared to a year earlier, down from 14 percent who planned to increase purchases in October. The percentage of farmers planning to keep their machinery purchases even with a year ago fell from 53 to 50 percent in November, while the percentage of respondents planning to reduce their purchases increased from 33 to 40 percent.