Midwest Rural Economy Continues To Grow

The Omaha World-Herald recently reported that a survey of rural Midwestern bankers indicated the region’s non-urban economy grew for the fifth straight month, with a pickup in housing sales to go along with strong farmland prices and farm equipment sales.

The index, based on a survey of 162 bankers in ten states, yielded an index of 56.7 on a scale of 100. Indexes above 50 indicate economic growth. A year ago, the index was 47.4, indicating a declining rural economy in the states.

The survey was taken after the earthquake and tsunami in Japan. Since then, some economists have expressed concern that the disaster could slow sales of farm goods to Japan in the short term.

The survey’s index for Iowa in March was 57.3, up slightly from 57.2 in February. Nebraska’s index was 58.7 in March, up from 57.2 in February. The other states in the survey were Colorado, Illinois, Kansas, Minnesota, Missouri, North Dakota, South Dakota and Wyoming.

The survey indicated that rural areas were adding jobs for the fourth straight month, with an index of 56 compared with 45.7 in March 2010. The survey also found that rural areas are outpacing urban areas in job growth, although the states’ rural areas have 206,000 fewer workers, a 4.4% decline, than before the recession. ◆