CHICAGO, ILL – The Purdue University/CME Group Ag Economy Barometer rose for only the second time since May, up 9 points to a reading of 125 in December. The Index of Current Conditions and the Index of Future Expectations also rose this month with stronger current conditions primarily responsible for the barometer’s rise.
The December’s Index of Current Conditions rose 18 points to a reading of 146, while the Index of Future Expectations rose 4 points to a reading of 114.
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 Dec. 8-14, 2021.
December marked the second month in a row that farmers reported a stronger financial performance for their farms.
The Farm Financial Performance Index rose 7 points to 113 in December which is the index’s highest reading since May and is 21% higher than readings obtained just before the pandemic’s onset.
Excellent crop yields this fall combined with strong crop prices provided many producers with their most positive cash flow in recent years.
That combination helps explain the year-end rise in the financial index as well as the barometer.
Even as supply chain issues continue to hamper producers’ capital investment plans, the Farm Capital Investment Index rose in December, up 10 points to a reading of 49.
