After six straight months of below Growth Neutral readings, the Creighton University Rural Mainstreet Index, or RMI climbed above the Growth Neutral threshold, 50.0, according to the monthly survey of bank CEO’s in rural areas of a 10-state region dependent on agriculture and/or energy. The index rose to 50.1.
However, the region’s farmland price index declined to 65.4 from November’s 68.2. This was the 27th straight month that the index has climbed above 50.0.
Nearly 35% of bankers say that higher interest rates are not impacting sales of farm equipment, saying that higher farm input costs, greater farm equipment sales and drought conditions in portions of the region supported strong borrowing from farmers. At the same time, higher interest rates encouraged greater CD purchases by farmers. The Kansas RMI for December expanded to a weak 49.9 from 43.7 in November.
