Labor Shortage Means Declining Optimism for Producers

WEST LAFAYETTE, IN – Labor concerns appear to be a contributing factor to the declining optimism in producer sentiment nationwide.

According to the latest Purdue University/CME Group Ag Economy Barometer released earlier this week. two-thirds of all respondents admitted to having either some or a lot of difficulty in hiring adequate labor: a two-fold increase over one year ago.

“Even as sentiment dipped in June, producers remained bullish on farmland values,” says Dr. Jim Mintert, director of the Center for Commercial Agriculture at Purdue.

The Short-Term Farmland Value Expectations Index declined nine points (148) in June, however that equals the third-highest reading for the index since data collection began in 2015. The Long-Term Farmland Value Expectations Index, based upon producers’ five-year outlook, declined 3 points (155) but is also the third-highest reading on record for that index.

Interest in leasing farmland for solar energy projects has risen sharply over the last couple of years, Mintert explains at one-third of farms are aware of solar leasing opportunities, though few have actually signed a solar lease to date. Of those who have had discussions with interested parties, solar lease rates vary from under $500 per acre to over $1000 per acre per year.
(SOURCE: All Ag News)