Farmers Report Higher Prices on Used Equipment

The Purdue University/CME Group Ag Economy Barometer landed at 135 in October, up three points from September. It represented the third-highest reading since data collection began in fall 2015.

Producers also rated prices for used farm machinery at the highest level since the inception of the project.

In October, 58 percent of farmers who responded to the survey rated used farm machinery prices as high.

As you’d expect, the share of producers rating prices as low fell to an all-time survey low of 11 percent.

Purdue/CME Group says the shift in perception suggests used farm machine values are strengthening. Survey organizers add that some Corn Belt farm equipment dealers report improved sales volumes this year.

In the overall index, the improvement was driven by the Index of Future Expectations, which increased from 130 in September to 137 in October. The Index of Future Expectations is one of the barometer’s two sub-indices. The other, the Index of Current Conditions, weakened slightly.

Each quarter, producers are asked their expectations for crop prices in the coming year. Compared to July, fewer producers expect higher corn, soybean and wheat prices in the next 12 months. However, fewer producers also expect crop prices to decline over the next year.