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Rural Mainstreet Index Falls for April: More Than One-Fifth of Bankers Expect Flood Loan Defaults

4/23/2019

April Survey Results at a Glance:

For the fifth straight month the overall index has remained at or above 50.0.
More than one-fifth of bankers, or 21.9 percent, expect an increase in farm loan defaults stemming from recent floods.
Farm loans soared to their highest level since initiation of survey in 2006.
Approximately 43.8 percent of bankers reported that recent floods have had a negative impact on the local economy.

OMAHA, Neb. (April 18, 2019) – The Creighton University Rural Mainstreet Index (RMI) for April stood at growth neutral for the month. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the RMI has now remained at, or above, growth neutral 50.0 for five straight months.

Overall: The overall index slipped to 50.0 from 52.9 in March. Since falling below growth neutral in November of last year, the overall RMI has risen above the growth neutral value. The index ranges between 0 and 100 with 50.0 representing growth neutral.

“Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, this month, 43.8 percent of bank CEOs indicated that the recent floods were having a negative impact on their local economy,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

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Government Affairs Weekly Report - Week 14: Apr. 15-18, 2019

4/19/2019

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by CBI Lobbyist Jeff Boeyink - Partner, LS2 Group

Overview / Major Events
Leaders of the House and Senate made major progress on budget negotiations and announced they had agreed on a global budget number. While details of how that number will be divided remain, the agreement on the size of the FY20 budget removes a major obstacle to an on-time adjournment. In fact, there is a growing belief that Session could conceivably adjourn by late next week or into that weekend (which would be a week early). However, it will not take much of a hiccup to move the timetable back to the original schedule.

Bi-Partisan Deal Reached on Sports Betting
This week a bi-partisan deal was reached on legislation that would allow existing Iowa casinos to operate sports betting operations in both their physical facilities and through the use of mobile applications. The deal also included the respective leaders of the House and Senate—meaning passage in both Chambers looks a near certainty.

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Rural Mainstreet Index Rises for March: Almost Half Report Negative Flood Impacts

4/16/2019

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March Survey Results at a Glance:

Overall index moves above growth neutral and to its highest level since December of last year.
More than half of supply managers reported negative economic impacts from flooding.
Approximately 82.9 percent of bankers reported that the number one reaction to farmer financial stress has been restructuring loans.
On average, bankers expect approximately 18 percent of grain farmers to experience expenses to exceed revenue for 2019. Up only slightly from March 2018.

OMAHA, Neb. (March. 21, 2019) – The Creighton University Rural Mainstreet Index for March rose to its highest level since December of last year according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. A large share of survey responses occurred before most of the negative impacts of the recent floods became widely known.

Overall: The overall index expanded to 52.9 from 50.2 in February. This is highest reading since December of last year, and the eleventh time in the past twelve months that the index has moved above growth neutral. The index ranges between 0 and 100 with 50.0 representing growth neutral.

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Rural Mainstreet Index Falls for February: Almost Two-Thirds of Banks Raised Farm Loan Collateral Requirements

4/16/2019

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February Survey Results at a Glance:

Overall index remains above growth neutral for the 11th time in past 12 months.
Bank CEOs project a 6.1 percent decline in farm equipment sales over the next year compared to a 6.9 percent reduction last February.
Weak farm income has pushed almost two-thirds of banks to increase collateral requirements on farm loans.
Almost one-third of banks have increased the farm loan rejection rate due to anemic farm income.

OMAHA, Neb. (Feb. 21, 2019) – The Creighton University Rural Mainstreet Index for February fell, but remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The overall index sank to 50.2 from January’s 51.5. This was the 11th time in the past 12 months the index has remained above growth neutral. The index ranges between 0 and 100 with 50.0 representing growth neutral.

“Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

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Government Affairs Weekly Report - Week 13: Apr. 8-11, 2019

4/11/2019

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by CBI Lobbyist Jeff Boeyink - Partner, LS2 Group

Overview / Major Events
With this first week post the 2nd funnel, the House and Senate began the process of closing the loop on numerous policy bills and starting floor work on the 10 bills that will constitute the state budget.

A reminder to readers that the 110th and final day of Session (final, in the sense that all Per Diem expenses end on this date) is May 3rd – leaving just three weeks remaining to complete work.

Senate Confirmations
The window for Senate confirmation of gubernatorial appointees extends from March 1 (the date the nominations must be delivered to the Senate) through April 15. Thus, this week saw daily action in the Senate to review, debate, and vote on the hundreds of individuals nominated by Governor Reynolds to lead state agencies and serve on dozens of state boards and commissions.

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Government Affairs Weekly Report - Week 12: Apr. 1-4, 2019

4/5/2019

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by CBI Lobbyist Jeff Boeyink - Partner, LS2 Group

Overview / Major Events
This week marked the arrival of the 2nd funnel and the end of the work of the various policy standing committees. Here forward the only significant work will be in Appropriations and Ways and Means Committees (and this will continue until the end of Session).

With roughly four to five weeks left in the Session, work will now shift to the respective House and Senate floors as they begin to clear the calendar of the remaining policy bills and dig deep into the appropriations process.

What’s Alive or Dead?
Among the big items that have cleared all funnel hurdles and will be eligible for the duration are bills to legalize sports betting in Iowa, a proposed constitutional amendment to embed gun rights in the Iowa Constitution, legislation to require pharmacy benefit managers to share drug discounts with patients, and a proposal to change the nomination process for judges at the Appeals and Supreme Court levels.

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Rural Mainstreet Index Falls for April: More Than One-Fifth of Bankers Expect Flood Loan Defaults

Government Affairs Weekly Report - Week 14: Apr. 15-18, 2019

Rural Mainstreet Index Rises for March: Almost Half Report Negative Flood Impacts

Rural Mainstreet Index Falls for February: Almost Two-Thirds of Banks Raised Farm Loan Collateral Requirements

Government Affairs Weekly Report - Week 13: Apr. 8-11, 2019

Government Affairs Weekly Report - Week 12: Apr. 1-4, 2019

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