Rural economy growth remains healthy, but slowing

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

A monthly report shows rural economy continues to expand, but the rate of growth is slowing and rural bankers are expecting farm income to decline from the previous year.

The Rural Mainstreet Index is a monthly survey of bank CEOs in a 10-state area mostly spread across the Midwest released by Creighton University. The survey reveals the economic index fell 1.5 from July to 55.8 in August, however the current month’s index figure is 8.7 above year-ago levels.

According to the report, the index ranges from 0 to 100, an index above 50% indicates expansion.

Creighton University economist Ernie Goss says last year’s index was greatly hampered by the drought. Lower agriculture commodity prices this summer continue to weigh on farm economy and businesses tied to agriculture.

The survey also shows farm land price increases are slowing and farm equipment sales are lower for the first time in three years.

The Omaha World-Herald reports non-farm investors aren’t bidding as aggressively for farmland as only 20 percent of farmland sales are purchased by non-farm investors.

Other categories showing slowed growth include a 5.2 percent drop in loan volume and a 1.5 percent decline in rural hiring.

The Associated Press reports survey participants remain positive about the economy, but are losing enthusiasm. The confidence index, rating expectations for the economy over the next six months, moved 3.2 points lower in August to 53.4%.

The August index is based on a survey of 188 rural and small-town bank executives in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

Tube Series (TS) Conveyors

USC’s Tube Series Conveyors combine the gentleness of the signature Seed Series with the traditional stability of a tube-style conveyor, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form