For the 13th consecutive month, the Rural Mainstreet Index sank below growth neutral. That’s according to a September survey of bank CEO’s in rural areas of a ten-state region dependent on agriculture and-or energy. The region’s reading in September sank from 40.9 in August to 37.5. It is the lowest level since COVID began in spring 2020. The index ranges from 0 to 100, with 50.0 representing growth neutral.
“Weak agriculture commodity prices, sinking agriculture equipment sales, and elevated input costs pushed the Index below growth neutral for the 13th straight month,” says Ernie Goss of Creighton University. For the fourth time in five months, farmland prices sank. The region’s farmland index fell to 43.8 from 45.5 in August. “Only 4.2 percent of bank CEOs reported that farmland prices expanded from August levels,” Goss adds. “One-fourth of the bankers anticipate a 10 to 20 percent downturn in prices over the coming year.”
-NAFB