(OMAHA, NE) — For the eighth time this year, the overall Rural Mainstreet Index sank below a growth-neutral score of 50.0. That’s according to the monthly survey of bank CEOs in rural areas of a ten-state region dependent on agriculture and energy. The region’s overall reading was 34.6 in October, the lowest level since May 2020. That’s down from 38.5 in September.
“Weak agriculture commodity prices for grain producers continue to dampen economic activity in the ten-state region,” said Dr. Ernie Goss of Creighton University. “While tariffs are producing higher economic volatility, 72 percent of bank CEOs say President Trump’s approach toward Chinese trade is ‘about right.’ This is almost unchanged from April when the same question was asked.”
For the 17th time in the past 18 months, farmland prices slumped below growth-neutral. The region’s farmland price index dropped to 37.0 from 45.8 in September. Farm loan delinquency rates rose from a very low 1.1 percent in June of this year to 1.6 percent this month.
Rural bankers remain pessimistic about economic growth for their area over the next six months. The October confidence index increased to 32.7 from 27.8 in September. “Weak grain prices and negative farm cash flows, combined with tariff retaliation concerns, pushed banker confidence lower,” said Goss.
According to Jeff Bonnett, President of Havana National Bank in Havana, Illinois, “We are definitely experiencing the pains of the ag crisis (defined as “a time of intense difficulty, trouble or danger”).”
Read more of the Rural Mainstreet Index here: https://www.creighton.edu/economicoutlook/mainstreeteconomy
