The September Purdue University/CME Group Ag Economy Barometer continues to show a decline in farmer sentiment, with producers feeling less optimistic about current and future economic conditions. Part of that decline is due to rising input costs. “This month, more than one-third of survey participants expect to see farm input prices rise by 12 percent or more over the next year,” said Jim Mintert, director, Purdue University’s Center for Commercial Agriculture. “If you compare that to prior months, it was a big jump.” There is a lot of concern about a future cost-price squeeze in agriculture. It’s not only the cost of seed, chemicals and fertilizer that will make a difference, but increases in farm rental rates, too. “About half of the corn and soybean farmers in our survey expect that to rise, some believe more than ten percent from the last year.”
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