Category: Energy

Rural Mainstreet Economy Slumps to a 2023 Low in October: Checking Deposits Declined Again

10/23/2023

October 2023 Survey Results at a Glance:

For a second straight month, the overall Rural Mainstreet Index sank below growth neutral to a 2023 low.
For the fourth time in the past five months, farm equipment sales declined.
Approximately 26.9% of bankers have tightened credit standards for farm borrowers.
Approximately 34.5% of bank CEOs have tightened credit standards for business borrowers.
Roughly 44.4% of bankers named low or falling crop prices as their top concern regarding farm profitability in the next 12 months.
Rising or high interest rates were identified by 22.2% of bank CEOs as the greatest concern regarding farm profitability in the next 12 months.
Checking deposits fell to their lowest level since May of this year.

OMAHA, Neb. (October 19, 2023) — For a second straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral according to the October 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 October fell to 44.4 from September’s 49.5. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“This is the weakest recorded reading for 2023 and points to weaker farm and non-farm economies. Despite this weakness, only 26.8% of banks reported tightening credit standards for farmers while 34.5% indicated that their bank had tightened credits standards for businesses in their area,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

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Rural Mainstreet Economy Slows in September: Half of Bankers Expect Economic Conditions to Worsen

9/25/2023

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September 2023 Survey Results at a Glance:

For the first time since March of this year, the overall Rural Mainstreet Index sank below growth neutral.
Approximately half of bankers expect economic conditions to worsen in the next six months.
A downturn in farm income was registered by bank CEOs as the No. 1 challenge to banking profitability for the next 12 months.
For the fifth time in the past 12 months, farming equipment sales declined.
Fewer than 4% of bankers reported an upturn in farm loan delinquencies over the past six months.
Bank CEOs expect rising interest rates to represent the second greatest challenge to banking operations over the next 12 months.
Approximately 46.4% of bankers indicated that they expect another banking crisis in 2023.
The region’s agriculture exports, including processed foods, fell from $19.95 billion in the first seven months of 2022 to $18.45 billion for the same period in 2023, for a 7.4% slump.

OMAHA, Neb. (September 21, 2023) — For the first time since March of this year, the overall Rural Mainstreet Index (RMI) sank below growth neutral for September, 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 for September fell to 49.5 from August’s 50.0. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“This is the weakest recorded reading since March of this year. Bankers indicated that the biggest challenge to community bank profitability over the next 12 months will be a downturn in farm income,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

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

2/20/2023

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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.

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

1/23/2023

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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.

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Iowa Legislature Update – Week Ending Feb. 7, 2020

2/7/2020

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by Charlotte Eby - Managing Director of Government Affairs, LS2group

View the Iowa Legislative Bill Tracker

Overview/Major Events
Iowa presidential caucuses under fire after results delayed for days
Results of Iowa’s first-in-the-nation presidential caucuses were marred Monday night with delays and technical errors, with no definitive winner declared after months of intense campaigning. The caucuses came under a harsh national spotlight when networks that had come to Iowa to broadcast results had no winner to report on caucus night. One news outlet described the night as an “epic meltdown.” By Thursday morning, Democrats Pete Buttigieg and Bernie Sanders were locked in a dead heat as results trickled in from the last precincts.

The Iowa Democratic Party, which administers the caucuses, blamed the delays on a faulty phone app that precincts were supposed to use to report results. Instead, many of the local officials chose to report their results by phone, jamming phone lines for hours.

None of the large field of candidates got the type of media bounce a caucus winner typically enjoys. Soon after the caucuses were over, candidates and their campaigns already were headed to New Hampshire, which holds its presidential primary on Feb. 11.

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Rural Mainstreet Economy Slumps to a 2023 Low in October: Checking Deposits Declined Again

Rural Mainstreet Economy Slows in September: Half of Bankers Expect Economic Conditions to Worsen

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

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

Iowa Legislature Update – Week Ending Feb. 7, 2020

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