The index that measures farmers’ willingness to buy equipment held strong at its record high of 93. The percentage of farmers expecting to increase their machinery purchases also held at its highest level of the last year.
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Farmers feel good about their financial positions, according to the Ag Economy Barometer. The Farm Capital Investment Index, which measures producers’ willingness to make big purchases, hit a record high in December.
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While farmers remained relatively optimistic about making large capital investments in their operations soon, the survey revealed shifts upward among groups intending to hang onto their equipment a bit longer or reduce purchases.
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Fewer farmers report a reluctance to spend on equipment and more report a likelihood that they will.
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The Purdue University/CME Group Ag Economy Barometer rose 27 points to a reading of 183 in October and set an all-time high for
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The capital investment index, which reflects farmers’ willingness to make big purchases, rose to its highest reading in 2020.
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The barometer and its two sub-indices posted their most positive readings since February, when record highs were established and before the pandemic began. The Farm Capital Investment Index improved by five points.
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In this most unusual year, when farmers cannot kick the tires at farm shows, they are defining their preferences for getting business information.
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Farmers’ perspective regarding whether or not now is a good time to make large investments in their farming operation improved markedly over the last two months.
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The Ag Economy Barometer suggests farmers felt less cautious about big expenses in April than they did in May. The survey overall shows subtle improvements.
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Data released Tuesday shows that the optimism farmers felt after the 2016 election has all but faded as a result of uncertainty around COVID-19.
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The survey by Purdue University and the CME Group captured an anxiety among farmers that is indicative of the national mood.
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The Farm Capital Investment Index, which assesses farmers’ willingness to invest in equipment and other capital, continues to strengthen.
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Farmers have become more optimistic about the future in past months. That optimism has not yet influenced their willingness to make capital investments.
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The Ag Economy Barometer drifted sideways in December, but the Farm Capital Investment Index concluded 2019 at the highest index value for the year.
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Agricultural economy sentiment in November matched its highest reading of 2019, which included a big bump in how willing farmers are to invest in equipment and other capital.
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Producers who responded to the Purdue University survey in October thought more favorably about making big investments. The index rose to within eight points of its peak.
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The Rural Mainstreet Index for September climbed above growth neutral. The farm equipment-sales index also improved.
Read moreConcerns about economic conditions led to a dip in the Ag Economy Barometer from February to March. The Index of
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