- The overall index improved from September's reading, but remained below growth neutral.
- For the 47th straight month, average farmland prices declined across the 10-state region.
- For the 50th straight month, the agriculture equipment sales index fell below growth neutral.
- Almost one in 10 bankers expect farm foreclosures to be the greatest challenge to banking operations over the next five years.
- Almost one-half of bankers report that current corn prices are below break-even for cash renting farmers in their area.
Overall: The index, like all indices in the survey, ranges between 0 and 100, increased to 45.3 from 39.6 in September.
“As a result of weak farm income and low agriculture commodity prices, approximately 9.5 percent of bank CEOs expect farm loan foreclosures to pose the greatest threat to banking operations over the next five years,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.
Farming and Ranching: The farmland and ranchland-price index for October slipped to 39.3 from 39.6 in September. This is the 47th straight month the index has fallen below growth neutral 50.0.
Bankers were asked to compare current spot prices for a bushel of corn to break even. Only 2.4 percent of bankers indicated that prices between $3.50 and $3.75 were above break even. Approximately 45.2 percent reported current spot prices were below break even.