Farmland Prices Fall for First Time in Almost Five Years
May 2024 Survey Results at a Glance:
- For a ninth straight month, the overall Rural Mainstreet Index sank below growth neutral.
- The farmland price index dropped below growth neutral after 53 straight months above the 50.0 threshold.
- Farm equipment sales sank below growth neutral for the 11th time in the past 12 months.
- Bankers registered average yearly cash rents of $245 per acre for non-irrigated crop land in the region.
- According to trade data from the International Trade Association, regional exports of agriculture goods and livestock for 2024 year-to-date were down 9.5% from the same period in 2023.
OMAHA, Neb. (May 16, 2024) — For a ninth straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the May survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The region’s overall reading for May fell to 44.2 from 45.8 in April. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“Higher interest rates, weaker agriculture commodity prices and higher grain storage costs pushed the overall reading below growth neutral for the ninth straight month,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Overall: The region’s overall reading for May fell to 44.2 from 45.8 in April. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“Higher interest rates, weaker agriculture commodity prices and higher grain storage costs pushed the overall reading below growth neutral for the ninth straight month,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
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