The barometer of the agricultural economy is collapsing and land prices remain high

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The barometer of the agricultural economy is collapsing and land prices remain high

From the Ag Information Network, I’m Bob Larson with Agribusiness Update.

** Agriculture Secretary Tom Vilsack vows to transform America’s food system, saying the pandemic and supply chain disruptions have presented a “litany of challenges.”

He described a new USDA framework for a transformed system to stock store shelves and “provide a better deal for farmers, ranchers, growers and consumers.”

Senator John Boozman, a senior member of the Senate Agriculture Committee, said the USDA plan “fails to respond to the moment.”

** The Purdue University-CME Group Agricultural Economics Barometer fell in May to a reading of just 99, the lowest since April 2020.

The May barometer marked only the ninth time, since data collection began in 2015, that the overall measure of farmer sentiment has fallen below 100.

The current conditions index fell 26 points to a reading of 94, while the future expectations index fell 21 points to 101 in May.

** Higher land prices at the end of 2021 continued to rise throughout the first half of 2022.

After a calm and steady start to the year, prices surged on the back of the outbreak of war in Ukraine and lingering inflation fears.

Farmers saw commodity prices rise and investors wanted a low-risk hedge investment against inflation, which together propelled competition for good cropland.

Prices for good quality cropland have increased by 20% in some areas since the start of the year.

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