The latest Rural Mainstreet Index has been in negative territory for eight consecutive months, according to the April survey. Creighton University economist Ernie Goss attributed this decline to the struggling agricultural sector, which is reflected in the survey results. The index is compiled monthly by surveying agricultural bankers in 10 states, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota.
In a surprising turn of events, the April report showed a decrease in farm loan delinquency rates, despite the challenges facing farmers with low commodity prices and farm income. Farmers were still able to repay loans on time, even though farm equipment sales continued to decline. Higher interest rates and market uncertainties have led farmers to hold off on major purchases until they see improvement in agricultural commodity prices.
Goss noted that farmland prices have been on the rise for the 53rd consecutive month. This indicates that there is still confidence in the value of agricultural land, despite the challenges facing the industry. The overall outlook for the rural economy remains uncertain, with many farmers cautious about making significant investments until market conditions improve.