Region Economy Remains Negative, Farmland Prices Index Drops

Posted January 18, 2024

Creighton University released its Rural Mainstreet Index (RMI) report for January, indicating moderate growth in the region but still failing to achieve an above-average rating.

The region’s overall reading for January rose to 48.1 from 41.7 in December. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates, weaker agriculture commodity prices and a credit squeeze are having a significant and negative impact on Rural Mainstreet businesses and on Rural Mainstreet farmers,” Ernie Goss, Ph.D. at Creighton University said.

Farmland prices rose for the month while the region’s farmland price fell to a still strong 64.0 from December’s 67.2.

“Creighton’s survey continues to point to solid, but slowing, growth in farmland prices. Approximately, 28.0% of bankers reported that farmland prices expanded from December levels,” said Goss.

Rural bankers remain doubtful regarding economic growth over the next six months.

Kansas

The Kansas RMI for January rose to 41.9 from December’s 38.3.

Kansas farmland price index fell to 60.7 from 64.0 in December. The new hiring index for Kansas dipped to 46.3 from December’s 46.8. U.S. Bureau of Labor Statistics data indicate that over the past 12 months, the state’s Rural Mainstreet economy expanded employment by 0.7 percent, while the state’s urban areas grew employment by a much higher 1.5 percent.

Missouri

Missouri’s January RMI decreased to a regional low of 31.6 from December’s 41.2.

The farmland price index declined to 57.7 from 59.6 in December. The new hiring gauge rose to 42.7 from 41.3 in December. U.S. Bureau of Labor Statistics data indicate that over the past 12 months, the state’s Rural Mainstreet economy expanded employment by 1.0 percent, while the state’s urban areas grew employment by a much higher 1.5 percent.