Farmer sentiment drifted downward in June as the
"The impact of rising interest rates on their farm operations has become a bigger concern for producers in recent months," said
This month's Farm Capital Investment Index declined by 3 points to a reading of 32, just one point above its historical low. More producers indicated this month that it is not a favorable time for large investments compared to May, while the percentage of producers who viewed it as a good time remained the same.
The Short-Term Farmland Value Expectations Index remained steady at 115 for June. However, there was a notable shift in producers' longer-term outlook on farmland values, with the Long-Term Farmland Values Index dropping to 152, down 7 points from May. Fewer producers expect that farmland values will increase over the next five years, coinciding with a rise in those anticipating values holding steady. Among those expecting a long-term increase in farmland values, 57% attributed their confidence to nonfarm investor demand, while 16% cited inflation as a driving factor. June marked the third consecutive month to include "Energy Production" as a potential driver of farmland values, with 10% of optimistic respondents pointing to energy production as a key driver of farmland values.
This month's survey also explored respondents' interest in carbon capture and storage projects introduced by ethanol plants. Eight percent of respondents reported being approached about such projects, with the majority (93%) noting they received payment offers for less than