Rural Economy Shows Strength

The rural economy showed strength in a survey of bankers in 10 Midwestern states this month, pushing the Rural Mainstreet Index to its highest point since May 2014.

Creighton University economist Ernie Goss said he was surprised by the reading—54.8 on a scale from zero to 100. Numbers above 50 show economic growth. The January index was 46.8.

Goss said weak agricultural commodity prices continue to hold back rural incomes. Fewer than one-fourth of the 168 bankers surveyed reported economic growth in non-urban areas of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

Four out of 10 bankers said they have raised collateral requirements for farm loans. Nevertheless, the bankers’ outlook for the coming six months also improved, raising the survey’s confidence index to 52.4 from 46.7 in January.

The land price index also rose to 46.3 from 42.2. It was the highest index since July 2014.

Farm equipment sales registered the 54th straight month of decline, and most bankers surveyed said they expect slower equipment sales in 2018 by an average of about 7 percent.

Hiring in rural areas was strong, with an index of 58.8.

Source: Omaha World Herald