In recent news, the Rural Mainstreet Index has fallen below growth neutral for the eighth straight month, according to the April survey. Creighton University economist Ernie Goss attributed this to the struggling agricultural sector, which is reflected in the survey results. The index is a monthly survey of agricultural bankers in 10 states, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska and South Dakota.
Despite facing challenges such as low commodity prices and farm income, a surprising trend emerged in the April report – farm loan delinquency rates are actually decreasing instead of increasing. Goss explained that farmers are still able to repay their loans on time despite the current economic climate. However, farm equipment sales continue to decline with farmers hesitant to make purchases due to higher interest rates and uncertainty surrounding agricultural commodity prices.
Moreover, the survey showed that farmland prices have been increasing for the 53rd consecutive month. Goss highlighted the ongoing struggles in the agricultural sector and how it is impacting rural economies. Overall, the findings of the April RMI survey paint a picture of a challenging environment for farmers and agricultural businesses in the surveyed states.
