Farmer sentiments declined for the second month in a row in September thanks to weakening crop prices and high production costs.
The Ag Economy Barometer index fell nine points as producers expressed concern about their current and future prospects of their farms.
Of the 400 farmers surveyed, one-third said high input costs remained their top concern. A fourth chose rising interest rates and lower crop and livestock prices.
Read more: Farmer sentiment dips in August
Interest rates are a particularly important factor in the agriculture industry, as many farmers rely on business loans to maintain and purchase new equipment and farmland. Three-fourths of respondents believe now is a bad time for large investments.
Producers remain relatively optimistic about farmland values, with those who expect values to rise over the next five years pointing to non-farm investor demand for farmland as well as inflation as key indicators.
The September survey included several questions posed to corn and soybean growers to learn more about their perspective on cover crops. Just over half of corn/soybean growers said they currently plant cover crops on a portion of their acreage and noted improvements to soil health and erosion control.
Farmers who tried planting cover crops but ultimately chose to discontinue their use cited low profitability, lowered crop yields, insufficient soil benefits, and a lack of resources to plant cover crops.
