Rural Economy Growth Continues

The rural economy continues to grow with farmland prices and equipment sales climbing, according to a survey of Midwest Bankers. Creighton University says the bankers see economic expansion for February but the pace of growth has slowed down somewhat.

The Rural Mainstreet Index (RMI) which ranges from zero to 100, declined to 55 in February from 59 in January, but still signifies growth. It compares to a much weaker reading of 36 in February 2010.

Creighton economist Ernie Goss credits global economic expansion, a cheap dollar and alternative energy production for pushing “the Rural Mainstreet economy into territory not experienced since the early 1970s.”

However, some of the bankers expect a correction and say higher input costs this year could mean overall growth for 2011 won’t be as good as 2010. Because of heavy cash flows, farmers have reduced their borrowing.

Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.

Ernie Goss will be our Keynote Speaker for upcoming Spring Management Clinic in Tampa, March 31-April 2.

A very limited number of rooms are still available, contact the Association office at (314) 878-2304 or visit FarmEquip.org for more info and online registration. ◆