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| Creighton University chart; click on the image to enlarge it. |
According to the July Rural Mainstreet Index, the rural economy is still growing this month, but not as much as last month. The index rose above growth neutral this month, the sixth time in the past seven months it has done so, reports Creighton University economist Ernie Goss, who compiles the index via a monthly survey of small-bank CEOs in a 10-state region where agriculture and energy are critical to the economy: Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.
Higher agriculture commodity prices and rebuilding efforts from recent flooding have helped rural economies, but nearly 9 out of 10 bankers surveyed said the trade war with China had hurt the economy--up from 8 in 10 who said the same thing in September. However, 69.4% of them support raising or continuing current tariffs, Goss reports.
The farmland and ranchland-price index rose slightly from June to July, from 41.2 to 44.8, though it remained below 50 (growth neutral) for the 67th straight month. Farm equipment sales also rose some in the past month, from 31.3 to 35.7, marking the 70th straight month it has been below growth neutral, Goss reports.
The confidence index, which measures expectations for the economy six months from now, dropped from 53.3 in June to 51.5 this month, marking a positive but anemic outlook among bankers, Goss reports.
In regional news: land values are up in Colorado because of demand for hemp and marijuana production. Illinois bankers say planting is still significantly behind in some areas of the state. Iowa bankers noted that farmers will get a great price on their corn this year, if they were able to plant it. Minnesota bankers noted that some areas had not experienced the extensive flooding seen by the rest of the Corn Belt, and that their farmers were looking to have a good year, Goss reports.
from The Rural Blog https://ift.tt/2Z7TElA Rural Midwestern bankers say rural economy helped by high ag prices and flood rebuilding, but hurt by trade war - Entrepreneur Generations
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