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Growers' Investment Plans Remain Down on Equipment Price Increases

Farmers' sentiment toward making large investments remains down, with many saying it's due to the rising costs of machinery and construction.

After dipping to a new record low last month, the Farm Capital Investment Index improved to a reading of 38. The rise in the investment index was driven by a reduction in the percentage of producers who said now is a bad time to make large investments.

When producers who view this as a bad time for large investments were asked to identify their primary reason, increasing costs of farm machinery and new construction remained the top reasons with 40% choosing that option, though this was down from 46% in the previous survey. The percentage of growers choosing rising interest rates fell slightly to 20% from 21%, and the percentage choosing uncertainty about farm profitability rose from 13% to 17%.

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