Farmers’ outlooks on the agricultural economy took a downturn at the start of 2024, according to the Ag Economy Barometer.
The index dropped eight points compared to December due to weakened prices of commodities and an anticipation of lower farm incomes.
For example, there was an 11 percent increase in the proportion of producers who anticipated a decline in financial performance this year. At the same time, the percentage of those expecting income levels to remain stable decreased 10 percent.
Additionally, a shift occurred as fewer producers attributed their hesitation to make large investments to rising interest rates. Instead, they said that high machinery costs and construction prices were the primary reasons to defer investments.
The survey also included a segment on gauging interest in carbon capture. Eight percent reported they were in ongoing discussions about carbon contracts. Among those, 61 percent were offered payment rates below 10 dollars per metric ton, and 12 percent we offered 30 dollars or more per ton.
Read more: Farmer sentiment remains stable as fears of inflation subside
