the Farm Capital Investment Index remained unchanged in April, despite an improved outlook for financial performance, according to the latest update from Purdue University’s Farm Economics Barometer.
“April’s investment index reading of 36 left the index at an all-time low, one point below the previous low reading seen in May 2019. Follow-up questions revealed that producers were somewhat less pessimistic in April about their purchase of machinery and new construction plans for the coming year compared to responses received in the March survey, but supply chain issues remain a key reasons why many producers feel that now is not the right time to invest heavily in their farm business,” the report states.
The percentage of producers planning to reduce their farm machinery purchases this year compared to 2021 stood at 57%, down from 62% in the previous update. The report states: “Once again, just over 40% of producers said their farm machinery purchase plans had been affected by low machinery inventories. The rising cost of all inputs, including machinery, buildings and grain silos, is probably another factor that has producers saying now is not the right time for big investments.”
The agricultural economy barometer itself rose 8 points to 121. Index of current conditions rose 7 points to a reading of 120 while the Future Expectations Index increased by 9 points to an index value of 122.