note: The $3.5 trillion bill is the budget resolution. The 'infrastructure'* bill is a separate $1.2 billion bill.
From Creighton's Heider College of Business, August 19:
August Survey Results at a Glance:
- Overall index remains in a range indicating strong growth for the month.
- Approximately 15.6% of bankers reported that continuing drought conditions are the greatest threat to banking operations over the next 12 months.
- Due to strong farm financial positions, 40.6% of bank CEOs see low loan demand as their bank’s greatest challenge over the next 12 months.
- Only 9.4% of bankers support passage of the $3.5 trillion infrastructure bill currently before Congress.
- Home sales climbed to a record high for the month.
OMAHA, Neb. (August 19, 2021) – For the ninth straight month, the Creighton University Rural Mainstreet Index (RMI) remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The overall index for August fell slightly to 65.3 from July’s 65.6. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.
Approximately, 34.4% of bank CEOs reported that their local economy expanded between July and August.
“Solid grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet Economy. USDA data show that 2021 year-to-date agriculture exports are more than 25% above that for the same period in 2020. This has been a prime factor supporting the Rural Mainstreet economy,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Farming and ranching: For an 11th straight month, the farmland price index advanced significantly above growth neutral. The August reading expanded to 76.6 from July’s 71.0. This is the first time since 2012-2013 that Creighton’s survey has recorded 11 straight months of farmland prices above growth neutral.
Approximately 15.6% of bankers reported that continuing drought conditions were the greatest threat to their banking operations over the next 12 months.
The August farm equipment-sales index declined to 64.7 from 67.2 in July. Readings over the last several months represent the strongest consistent growth since 2012.
Banking: The August loan volume index was unchanged from July’s 53.0. The checking-deposit index rose to 68.8 from July’s 67.7, while the index for certificates of deposit, and other savings instruments increased to 34.4 from 32.3 in July.
Due to strong farm finances, 40.6% of bank CEOs see low loan demand as their bank’s greatest challenge over the next 12 months.
Almost one third, or 31.3%, of bankers support immediately beginning the reduction (taper) of Federal Reserve buying of U.S. Treasury bonds and mortgage-backed securities. Another 25% think the Fed should begin the reduction or taper in the fourth quarter of 2021.
Hiring: The new hiring index rose to 70.3 from 67.6 in July. However, labor shortages continue to be a significant issue for Rural Mainstreet businesses....
Long title: An act to authorize funds for Federal-aid highways, highway safety programs, and transit programs, and for other purposes.
