Latest ag barometer finds farmers remain optimistic about farmland values
An ag economist says despite uncertainty in the farm economy, farmers remain relatively optimistic about farmland values.
Jim Mintert, director of Purdue’s Center for Commercial Agriculture says this continues to be one area of focus in the Purdue University/CME Ag Economy Barometer.
“This month, the long-term farmland value expectation index rose 8 points. It is lower than it was last fall (by) about 7 to 8 percent, but still when you look at the long-term history of our survey that’s a relatively optimistic number.”
He tells Brownfield survey respondents who expect farmland values to rise over the next 5 years are asked why.
“And the number one thing they tell us is they think it’s non-farm investor demand, followed by inflation. It’s kind of interesting to see this kind of dichotomy there with respect to people are really worried about their financial performance, yet they think the number one asset, farmland values is actually going to go up.”
The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between May 16-20.