Community Banking News Blog | Community Bankers of Iowa (CBI)

Rural Mainstreet Economy Records Slow Growth for February: Nine of Ten Bankers Gauge Ethanol as Important to Economy

2/20/2023

February 2023 Survey Results at a Glance:

For a third straight month, the region’s overall economic reading hovered slightly above growth neutral, indicating slow growth.
Farmland prices have now advanced for 29 straight months.
Farmers have expanded their purchases of farm equipment for 25 of the past 27 months.
In 2022, the 10-state region accounted for approximately three-fourths of all U.S. ethanol production.
- Roughly 91.3% of bankers with an ethanol plant in their economy indicated that it was an important industry for their local economy.
- Only 7.7% of bankers surveyed have an ethanol plant in their economy and rank it as a relatively unimportant industry in their area.
Approximately 63.0% of bank CEOs support capture and sequestration of CO2 from ethanol plants in their area provided farmers receive adequate compensation for pipelines crossing their farmland.

OMAHA, Neb. (Feb. 16, 2023) -- For a third straight month, the Creighton University Rural Mainstreet Index (RMI) climbed above the growth neutral threshold, 50.0, 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 region’s overall reading in February remained above the growth neutral threshold. The February index declined to 50.1 from 53.8 in January. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

Rural Mainstreet Economy Begins 2023 on Solid Note: Bank CEOs Rank Higher Input Prices as Greatest Farm Threat

1/23/2023

January 2023 Survey Results at a Glance:

After six consecutive months of below growth neutral readings, the region’s overall economic reading rose above the growth neutral threshold for a second straight month.
In terms of 2023 threats to farms in their area, bank CEOs ranked higher input prices as the greatest threat, followed by higher interest rates.
In terms of 2023 threats to rural bankers, bank CEOs ranked low loan demand as the greatest threat to rural banks, followed by rising regulatory costs.
Farmland prices continued to expand.
Despite higher interest rates, solid farm income pushed farm equipment sales higher.

OMAHA, Neb. (Jan. 19, 2023) -- After six straight months of below growth neutral readings, the Creighton University Rural Mainstreet Index (RMI) climbed above the growth neutral threshold, 50.0, for a second consecutive month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in January rose above the growth neutral threshold. The January index climbed to 53.8 from 50.1 in December. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

Community Bank Index (QCBI) State Performance Trends: 2022Q3

11/18/2022

compiled by CBI Endorsed Member QwickRate

STATE OF THE STATE: IA 3rd Quarter 2022
Key industry trends for the "true" community bank.

Click each image to view larger, or download the entire report (PDF, 1MB)

Download Full Report
File Size:	995 kb
File Type:	pdf

Community Bank Index (QCBI) State Performance Trends: 2022Q2

8/15/2022

compiled by CBI Endorsed Member QwickRate

STATE OF THE STATE: IA 2nd Quarter 2022
Key industry trends for the "true" community bank.

Click each image to view larger, or download the entire report (PDF, 1MB)

Download Full Report.
File Size:	997 kb
File Type:	pdf

Find Answers to Your Ag Questions at Bell Bank's AgViews Live!

6/21/2022

Learn how to manage what you can, while preparing for unexpected bumps and potholes, as you journey along agriculture’s rocky road at Bell Bank's 6th AgViews Live, a FREE agricultural seminar being held July 25 in Fargo, ND, July 26 in Sioux Falls, SD, and July 27 in Wisconsin Dells, WI.

Find out more here: https://bit.ly/3N8h7er

Contact Kelly Hegney at 701-451-7536 or khegney@bell.bank to register by July 12!

Fixed Income Market Brief: June 13, 2022

6/13/2022

While the Consumer Price Index rose faster than expected in May, the 6% year-over-year increase in the core CPI was lower than in both March and April, according to the latest Fixed Income Market Brief by Stifel, exclusive broker of CBI Endorsed Member ICBA Securities.

This week’s video also covers student-loan forgiveness proposals, declining consumer confidence, and reductions in the Fed’s balance sheet. | Watch the video.

Community Bank Index (QCBI) State Performance Trends: 2021Q2

8/24/2021

compiled by CBI Endorsed Member QwickRate

STATE OF THE STATE: IA 2nd Quarter 2021
Key industry trends for the "true" community bank.

Download Full Report.
File Size:	989 kb
File Type:	pdf

Click each image to view larger, or download the entire report (PDF, 1MB)

Rural Mainstreet Index Soars to Record High: 90% of Bankers Report Labor Shortages Restraining Growth

5/24/2021

May Survey Results at a Glance:

Overall index rocketed to a record high.
Approximately, 60.6% of bank CEOs reported that their local economy expanded between April and May.
Almost nine of 10 bank CEOs indicated that hiring at their bank and in the area was restraining growth.
For the first time since 2013, the regional farmland prices expanded for eight straight months.
On average, bankers reported annual cash rent per acre of $228, which represented growth of 7.3% over the past 12 months.

OMAHA, Neb. (May 20, 2021) – For the sixth straight month, the Creighton University Rural Mainstreet Index (RMI) climbed 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 for May jumped to a record high of 78.8 from April’s very healthy 69.0. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

Approximately, 60.6% of bank CEOs reported that their local economy expanded between April and May.

Iowa Legislature Update: Week Ending May 13, 2021

5/14/2021

View the Iowa Legislative Bill Tracker

Iowa lawmakers inch toward adjournment
Legislative leaders worked mostly behind the scenes this week crafting a massive tax relief package, setting the stage for adjourning the 2021 session potentially as early as next week.

House and Senate GOP leaders have been at odds over their must-do items on tax policy. The latest Senate bill, SF619, is a sweeping proposal that includes many of the priorities leaders from both chambers have wanted to include in tax reform this year. Among the bill’s chief provisions:

Fully implementing income tax cuts passed in 2018 in SF2417, which reduces rates and the number of tax brackets.
The tax changes were set to go into effect only if revenue targets were met.
Eliminating what is known as “federal deductibility,” which allows taxpayers to deduct what they pay in federal taxes from their Iowa tax bill
Shifting mental health services funding from local property taxes to the state
Expanding the childcare tax credit to apply to taxpayers making up to $90,000. Currently, only those making up to $45,000 qualify for the credit.
Phases out the inheritance tax over three years, with a full repeal in 2024
Requires health insurers to pay providers the same rate for telehealth mental health services as they pay for an in-person visit
Creates an Energy Infrastructure Revolving Loan Program to develop energy infrastructure.

Iowa Legislature Update: Week Ending April 29, 2021

4/30/2021

View the Iowa Legislative Bill Tracker

Census results show Iowa keeping all four congressional seats
Iowa will retain all four of its seats in the U.S. House after preliminary data from the 2020 Census show Iowa with modest population growth of 3.6 %.

As more detailed Census data is released, Iowa lawmakers will be required to vote on new congressional and legislative districts that become effective for the 2022 election. Iowa has an often-praised, nonpartisan process for drawing new political maps. Most of the work is left to computers, which will draw new district lines to create 50 Iowa Senate and 100 Iowa House seats, along with four districts for U.S. Congress.

The Des Moines and Iowa City metro areas had the fastest growth in population and are expected to gain new legislative seats, while most rural parts of the state continue to lose residents.