Region Economy Survey Shows Dwindling Farmland Prices

Posted May 20, 2024

Creighton University released its Rural Mainstreet Index (RMI) report for April, showing a dip into negative territory for the ninth month in a row.

The region’s overall reading for May fell to 44.2 from 45.8 in April. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates, weaker agriculture commodity prices and higher grain storage costs pushed the overall reading below growth neutral for the ninth straight month,” Ernie Goss, Ph.D. at Creighton University said.

For the first time in more than four years, the region’s farmland prices slumped to 47.9 from April’s 56.5, while equipment sales sank below growth neutral for the 11th time in the past 12 months.

The survey recorded rural bankers registered average yearly cash rents for non-irrigated cropland in the region of $245 per acre. Year-to-date exports in 2024 for agricultural goods and livestock were down 9.5% compared to the same time in 2023, according to the International Trade Administration.

May Rural Mainstreet Reports by state:

Kansas

The Kansas RMI for May sank to 35.4 from April’s 36.0. The state’s farmland price index slumped to 49.2 from 52.6 in April. The new hiring index for Kansas fell to 45.9 from 51.9 in April. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were up 3.7% from the same period in 2023.

Missouri

The state’s May RMI plummeted to 51.2 from April’s 75.8. The farmland price index fell to 51.3 from 63.9 in April. The state’s new hiring gauge slipped to 65.2 from April’s 65.8. According to trade data from the International Trade Association, exports of agriculture goods and livestock for 2024 year-to-date were down 17.1% from the same period in 2023.