Ag-related Indicators Reach Five-Year Lows, Survey Says

Farm-related economic indicators hit a five-year low in a survey of rural Midwestern bankers, who expect further declines in coming months, the Omaha World-Herald reported.

Parts of the nation dependent on agriculture have had slow or no growth in recent months, Creighton University economist Ernie Goss said Thursday. His survey of bankers yielded a Rural Mainstreet Index of 50.1 for this month’s survey, up slightly from 48.4 in February, according to the World-Herald article. An index below 50 means economic decline. The farm and ranch land price index was 40.9, the lowest since March 2009, and the farm equipment sales index was 29.3, the lowest since May 2009.

Goss said sales are weak for equipment dealers, but manufacturers see healthy sales in other countries. He added that agriculture needs higher prices for farm commodities to return to the healthy growth trends of 2012-2013, and recent increases haven’t been enough to improve the rural economy.

The survey is based on responses from 182 bank executives in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. Their answers yielded a confidence index of 47.3, indicating they expect a declining economy over the coming six months.