June Survey Results at a Glance:
- The overall index slipped slightly to growth neutral.
- More than three-fourths of bank CEOs reported a shortage of qualified or skilled workers was having a negative impact on economic growth.
- On average, bankers project farmland prices will decline by another 3 percent over the next 12 months.
- Due to weak farm income, almost one fourth of bankers reported rejecting a higher percentage of farmer loan applications and approximately 60.9 percent reported boosting collateral on farm loans.
- Kansas, North Dakota, South Dakota, and Wyoming below growth neutral for month.
OMAHA, Neb. (June 15, 2017) – After dropping below growth neutral for 20 straight months, the Creighton University Rural Mainstreet Index remained above the 50.0 threshold for May and June according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, dipped to 50.0 from 50.1 in May. Prior to May, the last time the overall index was at or above growth neutral was August 2015.
“Stabilizing and slightly improving farm commodity prices helped push the overall index at or above growth neutral for the last two months,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Though grain prices remain below breakeven for most farmers, recent improvements in cattle and hog prices have boosted the overall index for Rural Mainstreet Economy to growth neutral.”
One bank CEO reported the recent rally in cattle prices, has been a positive with early contracts.
Jim Eckert, president of Anchor State Bank in Anchor, Illinois, said, “Crops in Central Illinois are looking better than in other areas of the state, but the area is much dryer than north or south and there is not much prospect of rain in the immediate future.”
Overall: The index, which ranges between 0 and 100, dipped to 50.0 from 50.1 in May. Prior to May, the last time the overall index was at or above growth neutral was August 2015.
“Stabilizing and slightly improving farm commodity prices helped push the overall index at or above growth neutral for the last two months,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Though grain prices remain below breakeven for most farmers, recent improvements in cattle and hog prices have boosted the overall index for Rural Mainstreet Economy to growth neutral.”
One bank CEO reported the recent rally in cattle prices, has been a positive with early contracts.
Jim Eckert, president of Anchor State Bank in Anchor, Illinois, said, “Crops in Central Illinois are looking better than in other areas of the state, but the area is much dryer than north or south and there is not much prospect of rain in the immediate future.”
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