The Purdue University/CME Group Ag Economy Barometer Farmer sentiment indicated an erosion of farmer sentiment in June. The reading fell three points to 105. The Index of Future Expectations dropped five points to 112. The June current Conditions Index increased one point from May at a reading of 90. The survey took place from June 17 to 21.

James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture, shared that rising interest rates have become a more significant concern for producers in recent months. This is compounded by concerns that crop and livestock prices could weaken in the face of higher breakeven prices.

Farmers indicated it is not a favorable time for large investments. The Farm Capital Investment Index fell by three points to a reading of 32. This is only one point above the index’s historical low.

While farmers remained steady on the outlook for farmland values, fewer producers expected land values to increase over the next five years.

Read more results from the Purdue University/CME Group Ag Economy Barometer here.