Rural Mainstreet Economy Falls Again in February
For the 17th time in the past 18 months, the overall Rural Mainstreet Index (RMI) sank below the 50.0 reading in February, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Farm equipment sales: The farm equipment sales index rose to a very weak 18.2 from January’s 17.4. “This is the 19th straight month that the index has fallen below growth neutral. High input prices, tighter credit conditions and weak farm grain prices are having a negative impact on the purchases of farm equipment,” Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Farming and ranch land prices: For the 8th time in the past nine months, farmland prices sank below growth neutral. The region’s farmland price index fell to 40.0, its lowest level since October 2024, and down from 42.0 in January.
Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. The February confidence index sank to 40.0 from January’s 42.3. “Weak grain prices and negative farm cash flows, combined with downturns in farm equipment sales over the past several months, continued to push banker confidence below growth neutral,” said Goss.
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