Rural Economies Improve, Ag Lags

The Creighton University Rural Mainstreet Index for December indicated economic growth in rural areas economically dependent on agriculture or energy.

The overall index released in late December climbed to 54.2 from November’s 49.9. The index ranges between 0 and 100 with 50 representing growth neutral.

The December farm equipment-sales index increased to 37.1 from November’s 30.6.

The survey revealed that borrowing by farmers advanced for December. The borrowing index climbed to 72.2 from November’s loan-volume index of 60.6.

The confidence index, which reflects bank CEO expectations for the economy six months out, slumped to 44.3 from November’s 47.

The Rural Mainstreet Index covers 10 states and focuses on about 200 rural communities with an average population of 1,300. The survey includes bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

Ernie Goss, who is chairman of regional economics at Creighton University’s business college, said survey findings from 2018 suggest rural economies are expanding outside of agriculture. He said uncertainty around trade and commodity prices is contributing to the weakness.