After advancing above growth neutral in November for the first time since 2023, the overall Rural Mainstreet Index sank below the 50.0 reading in December.  That’s according to the monthly survey of bank CEOs in rural areas of a ten-state region dependent on agriculture or energy.  The index fell from 50.2 in November, to just 39.6 this month.  That marks the 11th time this year that the overall reading was below growth neutral.  The index range is 0 to 100, with 50.0 representing growth neutral.

 

“In retrospect, there appears to have been a significant November upturn resulting from the surprising Trump election results,” said Creighton University's Dr. Ernie Goss.  “The positive bump disappeared in December.”  

 

Roughly one in four bankers reported their local economy was either in a recession or would enter a downturn in 2025.  The remaining three out of the four bankers expect slow growth but no recession next year. 

 

A few other notes from this month’s report:  

  • For the 7th time in the past eight months, farmland prices sank
  • Farm equipment sales dropped for the 17th straight month
  • On average, farm loan delinquency rates rose by only 1.2% over the past six months
  • According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date rose to $9.98 billion from $9.71 billion from the same period in 2023 for a 2.8% gain
  • Roughly, 21.7% of bankers indicated that their bank had raised credit standards over the past 12 months.

 

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com  

More From PNW Ag Network