What is in this article?:
- Farmland Price Growth Slows; Bankers Cautiously Optimistic
- State-by-state outlook
While growth for the rural mainstreet economy remains healthy, it slowed a bit in July.
Here’s a state-by-state rundown of rural mainstreet economic conditions:
Colorado: For a 10th straight month, Colorado’s rural mainstreet index (RMI) remained above 50.0, as July RMI declined to a still robust 70.5 from June’s 81.2. FPI declined to a strong 75.5 from June’s 80.3. Colorado’s NHI for July slipped to 73.0 from June’s 75.7. Bankers reported problems for certain segments of the rural economy. According to Fred Bauer, CEO of Farmers Bank in Ault, “Dairies are still struggling with (high) feed costs.”
Illinois: While RMI declined in July to 57.6 from June’s 61.6, it’s remained above growth neutral for 10 straight months. FPI sank to 49.1 from 49.4 in June, while NHI dipped to 54.3 from 55.2.
Iowa: July RMI expanded slightly to 62.3 from June’s 62.2, and FPI advanced to 54.6 from 49.6 in June. July NHI improved to 58.0 from June’s 55.3. As reported by Steven Lane, CEO of Security Savings Bank in Farnhamville, “Most of the crops in our area were planted late. It’s now up to Mother Nature to see if it amounts to much.”
Kansas: RMI decreased to 59.2 from June’s 60.5, while FPI sank to 46.6 from June’s 49.6, and NHI decreased to 52.7 from June’s 56.7. Kansas bankers remain hopeful but cautious on the farm economy.
Minnesota: RMI tumbled to a 53.4 from June’s 59.7. FPI fell to 51.3 from 58.5 in June, while NHI declined to 55.8 from last month’s 61.2. Pete Haddeland, CEO of the First National Bank in Mahnomen, says the crops look great.
Missouri: RMI rocketed to a regional high of 81.2 from June’s 59.2, while FPI remained strong at 78.9, but down from June’s 81.5. NHI rose to 84.2 from June’s 76.7.
Nebraska: After moving below growth neutral for January, RMI has moved above growth neutral for six straight months. RMI climbed to 58.0 from 56.5 in June, while FPI fell to 48.5 from June’s 59.2. NHI dipped to 53.9 from June’s 53.7. Weather remains a problem for some parts of the state. Bill McQuillan, president of CNB Community Bank of Greeley, says, “Pasture conditions continue to deteriorate because of the lack of moisture in the last 30 days.”
North Dakota: RMI dipped to a 78.4 from June’s 81.8, and FPI declined to 82.4 from June’s 87.6. NHI declined to a still very strong 76.5 from June’s 80.6.
South Dakota: RMI slipped to 59.9 from 60.5 in June, while FPI slumped to 50.8 from June’s 51.5, and NHI decreased to 55.5 from June’s 56.5. As in other areas of the region, farm conditions are up significantly from last year. David Callies, CEO of Miner County Bank in Howard, reports that crops are doing very well.
Wyoming: RMI rose to 53.0 from June’s 52.6, while FPI grew to 41.9 from June’s 40.8, and NHI to 49.6 from June’s 49.4.
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