Farmland Prices, Equipment Sales, Decline in Monthly Index
Farmland prices and farm equipment sales declined in the August Creighton University Rural Mainstreet Index. The overall index fell for the fifth straight month, for August slumped to 44.0 from 46.0 in July. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. The region’s farmland price index for August declined to 60.0 from July’s 66.0, marking the 23rd straight month that the index has moved above growth neutral. August’s solid reading was the lowest index since February 2021.
The August farm equipment-sales index sank to 45.9 from 56.5 in July. After 20 straight months of advancing above growth neutral, the index unexpectedly dropped below the threshold to its lowest level since November 2020.
Index organizer Ernie Goss said, “Farmers and bankers are bracing for escalating interest rates and falling farm commodity prices.” However, bankers expect to record a 1.7% decline in farm loan delinquencies over the next 12 months.
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