Rural Mainstreet Results Reflect Tough Reality

The Creighton University Rural Mainstreet Index dipped in November from October’s reading and remained below growth neutral.   

The overall index, which ranges between 0 and 100, slipped to 44.7 from 45.3 in October.

The November farm equipment-sales index was 26.2; the October reading was 29.3.

The confidence index, which reflects expectations for the economy six months out, increased to 40.6 from October’s 37.0.

“Concerns about trade, especially current NAFTA negotiations, and low agriculture commodity prices impaired bankers’ economic outlook,” said Ernie Goss, regional chair in economics at Creighton University.

More than half of the bankers who responded to the survey said they’ve increased collateral requirements for farm loans. More than one in five indicated their bank had rejected a higher percent of farm loan applications. Nearly 35 percent, however, reported no change in farm loan terms and requirements.

Each month, community bank presidents and CEOs in non-urban agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities.

In November, Colorado, Missouri, and North Dakota saw improvements in surveys. Numbers dipped for Wyoming, South Dakota, Nebraska, Minnesota, Kansas, Iowa, and Illinois.