After showing some improvement towards the end of 2023, the Farm Financial Performance Index experienced a downturn, marking its lowest point since May of 2923.
The index dropped by 7 points from December to January, mainly due to a shift in sentiment among farmers regarding their income prospects for the upcoming year compared to 2023.
Concerns about lower crop and livestock prices emerged as a top worry among farmers, with 28 percent expressing apprehension, matching the percentage of farmers concerned about rising input costs.
Unsurprisingly, given producers’ concern about farm incomes, the Farm Capital Investment Index fell to 35, 8 points lower than in December. While fewer farmers are attributing rising interest rates to their belief that now is a bad time to invest, they’re pointing toward the rising cost of farm machinery and equipment.