Rural Mainstreet Index Stays Below Growth Neutral

For the 13th consecutive month, the Rural Mainstreet Index sank below growth neutral.  That’s according to a September survey of rural bank CEO’s.  The reading sank from 40.9 in August to 37.5 in September.  That is the lowest level for the Rural Mainstreet Index since the COVID Pandemic began in spring 2020.  The index ranges from 0 to 100, with 50 representing growth neutral.

“Weak agriculture commodity prices, sinking agriculture equipment sales, and elevated input costs pushed the Index below growth neutral for the 13th straight month,” says Ernie Goss of Creighton University. For the fourth time in five months, farmland prices sank. The region’s farmland index fell to 43.8 from 45.5 in August.

"Only 4.2% of bank CEOs reported that farmland prices expanded from August levels,” Goss added. “One-fourth of the bankers anticipate a 10% to 20% downturn in prices next year.”

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