Following on yesterday's "USDA predicts major drop in farm income for 2024".
From Creighton Uni.'s Heider College of Business, February 15:
February 2024 Survey Results at a Glance:
• For a sixth straight month, the overall Rural Mainstreet Index sank below growth neutral.
• Almost three-fourths of bank CEOs named low farm commodity prices as the biggest risk for farms in 2024.
• More than four of 10 bankers named falling farm commodity prices as the biggest risk for community banks in 2024.
• Approximately 44% of bankers indicated that the financial positions of farmers in their area had weakened over the past six months.
• Farmland prices expanded for the 51st straight month.
• The farm equipment sales index slumped below growth neutral for the eighth time in the past nine months.Creighton University Rural Mainstreet Index (RMI)
OMAHA, Neb. (February 15th, 2024) — For a sixth straight month, the overall Rural Mainstreet Index (RMI) sank below growth neutral, according to the February survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The region’s overall reading for February fell to 46.2 from 48.1 in January. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“Higher interest rates, weaker agriculture commodity prices and a credit squeeze are having a significant and negative impact on Rural Mainstreet businesses and on Rural Mainstreet farmers,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Jeff Bonnett, CEO of Havana National Bank in Havana, Ill., reported that, “Commodity prices that are $1.50 to $2.00 per bushel (corn) less than break-even are obviously not sustainable.”
Farming and ranching land prices: The region’s farmland price index fell to a still solid 57.7 from January’s 64.0. The farmland price index has remained above growth neutral for 51 consecutive months....
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