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The Rural Mainstreet Economy Index reports the region sank in economic growth for the sixth month in a row. Photo Credit: Shutterstock (IZZUANROSLAN)
Posted February 15, 2024
Creighton University released its Rural Mainstreet Index for February and reported that 44 percent of bankers consider farmers’ financial conditions to be worsening.
The overall Rural Mainstreet Index (RMI), ranging from 0 and 100 with a reading of 50 representing growth neutral, dipped to 46.2 from 48.1 in January. This is the sixth straight month of below growth neutral for the region.
The farmland price index fell to 57.7 from January’s 64.0, This is still an above-growth neutral figure and is expected to stay at a score of above 50.0, however, farmland prices are on the rise with 19.2 percent of bankers reporting farmland prices expanded from January levels, according to Ernie Goss, Ph.D. at Creighton University. Almost three-fourths of bank CEOs named low farm commodity prices as the biggest risk for farms in 2024, according to te survey.
“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,” Goss said.
The regional exports of agricultural goods and livestock for 2023 were $12.1 billion, down 8.7 percent from $13.3 billion in 2022, according to the International Trade Association.
Kansas
The Kansas RMI for February sank to 37.9 from January’s 41.9. The state’s farmland price index fell to 54.1 from 60.7 in January. The new hiring index for Kansas dipped to 45.4 from 46.3 in January.
International Trade Association shows exports of agricultural goods and livestock for 2023 were $1.4 billion, down 36.6 percent from $2.1 billion in 2022.
Missouri
Missouri’s February RMI increased to 37.3 from January’s regional low of 31.6. The farmland price index declined to 54.0 from 57.7 in January. The state’s new hiring gauge rose to 45.2 from 42.7 in January.
According to trade data from the International Trade Association, exports of agricultural goods and livestock for 2023 were $1.23 billion, up 1.65 percent from $1.21 billion in 2022.
