Farmer sentiment took a downturn at the start of 2024 as the January Purdue University-CME Group Ag Economy Barometer Index fell to a reading of 106.

In its most recent update, Purdue University and CME Group's Ag Economy Barometer rose by 2 points to a reading of 123, primarily due to farmers' improved perception of current conditions. 

The investment index fell 6 points compared to a month earlier, pushing it down to 37, its lowest reading since last November. 

In a reversal from last month, more respondents chose rising equipment and construction costs (39%) than rising interest rates (33%) as a top reason for this being a poor time for large investments.

Rising interest rates have become a leading reason for growers to not buy farm equipment, according to the latest update to the Ag Economy Barometer.

The March update to the Ag Economy Barometer from Purdue University and CME Group saw the farm capital investment index rise 1 point in February to a reading of 43.

The Purdue University-CME Group Ag Economy Barometer Index rose again in January, to a reading of 130, 4 points above its 2022 year-end index value.