The last question on each month’s survey provides respondents with an open-ended question asking them to share what’s on their minds. Figure 3 is a “word cloud” representation of responses received in the October survey. Unsurprisingly politics was mentioned quite often, with the elections looming just a few weeks into the future. Perhaps more importantly, it’s clear many producers were thinking about possible policy shifts that could impact their farms and the agricultural economy. Mentions of regulation, environment and taxes were featured prominently, along with concerns about prices.
When asked explicitly about their biggest concerns for the upcoming year, producers still point to increased input costs and reduced output prices as their biggest concerns. The trend continued this month of fewer producers citing interest rates as an important concern. Just 15 percent of producers, a decrease from as much as 26 percent of producers in late 2023, chose interest rates as one of their biggest concerns in October.
One of the biggest surprises from this month’s survey was the increase in the Farm Financial Performance Index. The index is based upon a question that says, “As of today, do you expect your farm’s financial performance in the next 12 months to be better than, worse than or about the same as in the past 12 months?” The October reading of 90 jumped to 22 points more than September’s and was just 2 points less than a year earlier.
Larger fall crop yields and a stress-free fall harvest season in the Corn Belt and Plains states likely contributed to the index’s increase. But those two factors alone don’t account for the index’s sharp increase. The index’s improvement provides another indication that farmer optimism about the future shifted in October, leading to an expectation of better financial performance in 2025 than in 2024. Coincident with the increase in the financial index was a modest improvement in the Farm Capital Investment Index, which at 42 was 7 points more than in September. That’s another signal that producers in October might be viewing 2024’s weak income prospects as transitory.
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