- The overall index climbed for month, but remained below growth neutral.
- Approximately 57.6 percent of bankers reported drought conditions were having a negative impact on agriculture production in their area,
- Average yearly cash rents declined by 4.3 percent over the past year to $241 per acre.
- On average bankers expect farmland prices to decline by another 3.5 percent over the next year. In August 2016, bank CEOs projected a 6.9 percent decline for next year.
Overall: The index, which ranges between 0 and 100, increased to a weak. 42.2 from 40.7 in July which was the index’s lowest level since November of last year.
“We continue to record economic weakness stemming from low agriculture commodity prices and fallout from the drought in parts of the region. Approximately 57.6 percent of bankers reported drought conditions were having a negative impact on agriculture production in their area, “said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.
However there was significant variability regarding the impact of weather conditions. Bryan Grove, president of American State Bank in. Grygla, Minnesota, said, “Crop conditions overall in northwest Minnesota are good. Small grain harvest is just starting, with good results both in quality and quantity.”