The Purdue University/CME Group Ag. Economy Barometer fell by 1 point from November to 114 in December. The two components of the Barometer also fell 1 point each from November. The Current Conditions Index for December attained 112 and the Futures Expectation Index was 115. These components were respectively 17 percent and 6 percent lower than in December 2022. The Purdue/CME Barometer is based on responses from approximately 400 producers contacted by telephone during the period December 4th through 8th, 2023.
U.S. farmers anticipate lower inflation and a reduction in interest rates in 2024 contributing to a 2-point increase in the Farm Financial Performance Index to 97. Almost half of the farmers surveyed considered that interest rates in 2024 would fall between 2 and 4 percent.
Farmers expressed concern over potentially lower crop and livestock prices in 2024 coupled with higher input costs that will constrain income.