The rural economy moved narrowly back into positive territory during August, but financial pressure remains across farm country. Creighton University’s Rural Mainstreet Index climbed to 50.3, up sharply from 42.1 in July. A reading above 50 indicates economic growth. Despite the improvement, nearly half of rural bankers surveyed expect farm income to decline during the next year, while only about 16 percent expect an increase.

Farm and ranchland prices also slipped below growth-neutral, while the farm equipment sales index dropped to just 22.2. Equipment sales have now remained below growth-neutral for three straight years. Creighton economist Ernie Goss says high input costs, weak grain prices and uncertainty surrounding tariffs and the Iran conflict continue to pressure producers. Drought is also causing some ranchers to liquidate cattle, although nearly 54 percent of bankers say they have not tightened agricultural credit standards during the past three months.

By: NATHAN STUEDLEThe rural economy moved narrowly back into positive territory during August, but financial pressure remains across farm country. Creighton University’s Rural Mainstreet Index climbed to 50.3, up sharply from 42.1 in July. A reading above 50 indicates economic growth. Despite the improvement, nearly half of rural bankers surveyed expect farm income to decline during the next year, while only about 16 percent expect an increase.Farm and ranchland prices also slipped below growth-neutral, while the farm equipment sales index dropped to just 22.2. Equipment sales have now remained below growth-neutral for three straight years. Creighton economist Ernie Goss says high input costs, weak grain prices and uncertainty surrounding tariffs and the Iran conflict continue to pressure producers. Drought is also causing some ranchers to liquidate cattle, although nearly 54 percent of bankers say they have not tightened agricultural credit standards during the past three months.

Rural economy edges back into growth