Wednesday, May 27, 2015

U.S. Farmland Sees 18th Monthly Price Decline As Rural Economy Shows Slight Uptick

From Creighton University:

Mainstreet Economy

Rural Mainstreet Economy Slows:
Some Bankers Reported Negative Impacts from Bird Flu

May Survey Results at a Glance:

• The Rural Mainstreet Index improved, but remained below growth neutral for May signaling slight pullbacks in economic activity.      
• Farmland prices declined for the 18th straight month, but with wide variations across the region
• Almost one in five bankers reported negative fallout from the avian flu outbreak.
• Agriculture equipment-sales index dropped to a record low level. 
• Bankers identified rising regulatory costs as the top economic challenge to bank profitability for the next five years.
For Immediate Release:  May 21, 2015
OMAHA, Neb. – The Creighton University Rural Mainstreet Index for May rose slightly from April’s weak reading, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.   
Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100, climbed to 49.0 from 46.0 in April. 

“The stronger U.S. dollar continues to be a drag on the Rural Mainstreet economy. The strong U.S. dollar has made U.S. goods, especially agriculture and energy products, less competitively priced abroad. This has dampened farm income and the Rural Mainstreet economy," said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.

Farming and ranching: The farmland and ranchland-price index for May climbed to 39.7 from April’s 33.4. “However, this is the 18th straight month the index has moved below growth neutral. But according to banker comments, there is great deal of variation across the region with many areas continuing to experience strong demand for farmland with little deterioration in farmland prices,” said Goss....MUCH MORE