June Survey Results at a Glance:
- For a fifth straight month the overall index rose above growth neutral.
- In reaction to weak farm income, the percentage of banks increasing farm loan rejection rates expanded from 23.9 percent to 42.9 percent over the past year.
- Almost two-thirds of bankers indicated their banks had increased collateral requirements on farm loans in reaction to weak farm income.
- On average, bankers expect farmland prices to decline by 2.1 percent over the next 12 months. This is less than the 3.1 percent projected fall recorded last year at this time.
OMAHA, Neb. (June 21, 2018) – The Creighton University Rural Mainstreet Index climbed above growth neutral in June for a fifth straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. This is the first time since July 2015 the survey has recorded five straight months of overall indices above growth neutral.
Overall: The overall index slid slightly 56.1 from 56.3 in May. The index ranges between 0 and 100 with 50.0 representing growth neutral.
“Surveys over the past several months indicate the Rural Mainstreet economy is trending upward with improving, and positive economic growth. However, the negative impacts of recent trade skirmishes has yet to show up in our survey results. While agriculture commodity prices have improved recently, prices remain below breakeven for a large share of grain farmers,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Overall: The overall index slid slightly 56.1 from 56.3 in May. The index ranges between 0 and 100 with 50.0 representing growth neutral.
“Surveys over the past several months indicate the Rural Mainstreet economy is trending upward with improving, and positive economic growth. However, the negative impacts of recent trade skirmishes has yet to show up in our survey results. While agriculture commodity prices have improved recently, prices remain below breakeven for a large share of grain farmers,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
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