What is in this article?:
- Rural Economy Remains Below Growth Neutral
- State-by-state outlook
While farm income appears to be holding strong, businesses linked to agriculture continue to experience pullbacks in economic activity.
Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.
This survey represents an early snapshot of the economy of rural, agriculture and energy-dependent portions of the nation. The RMI is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300.
Colorado: For a second straight month, Colorado’s RMI was below growth neutral, rising to 45.2 from 25.2 in August. The FPI and ranchland price index (RPI) increased to 48.4 from 44.2. Colorado’s September NHI was 39.8, which was down from 43.0 in August.
Illinois: For a fourth straight month, the RMI for Illinois remains below growth neutral. September climbed to a weak 48.0 from 34.4 in August. Farmland prices bounced back above growth neutral to 54.6 from August’s 45.3. The state’s NHI increased to 44.0 from August’s 43.7.
Iowa: RMI slipped to 48.7 from August’s 49.2, while FPI advanced to 62.8 from August’s 57.2. NHI for September dipped to 49.4 from 51.6 in August.
Kansas:RMI slipped to 49.5 from 50.1 in August, and FPI rose to 62.8 from August’s 53.2. The state’s NHI increased slightly to 49.1 from August’s 48.9.
Minnesota: September RMI fell to 51.7 from August’s 52.9, while FPI jumped to 71.1 from August’s 60.3. NHI rose to 54.9 from August’s 53.7.
Missouri: RMI rose from August’s 39.8 to a regional low of 41.6, while FPI increased to 50.2 from August’s 44.6. NHI advanced to 48.1 from 31.6 in August.
Nebraska: For a third straight month, growth in Nebraska’s rural economy remained in negative territory. RMI rose to 48.8 from 44.1 in August, FPI advanced to 59.2 from August’s 48.9, and NHI expanded to a weak 47.0 from 46.0 in August.Cameron Mathis with Tilden Bank in Creighton, says the harvest is progressing with yields on dryland better than expected and corn yields on irrigated land very good.
North Dakota: RMI declined, but remained strong with a regional high of 60.5, down from 72.1 in August. FPI was unchanged from August’s 68.9, and NHI rose slightly to 68.0 from August’s 67.8.
South Dakota: RMI dipped to 48.3 from 52.2 in August, while FPI climbed to 58.1 from August’s 49.3, and NHI was unchanged from August’s 46.3.
Wyoming: RMI expanded to 46.9 from August’s 36.7, while the September FPI and RPI expanded to 52.9 from August’s 49.5. NHI remained below growth neutral with a September reading of 42.9, down from 46.4 in August.