The Rural Mainstreet Index in June, rose above growth neutral for the month, to its highest level since May 2022. Bank CEO’s ranked Federal Reserve rate hikes as the greatest challenge in the 12 months ahead, with rising bank regulations a distant second. More than half of bankers reported that higher interest rates were impairing farm equipment purchases. Farm equipment sales declined for only the third time in the past 31 months. On average, bankers expect farm loan defaults to expand less than 1% over the next 12 months.
The region exported $13.3 billion of agriculture and livestock in 2022. This represented 26.5% growth from the previous year. Mexico was the chief destination, accounting for 55.2% of the region’s farm exports. The Kansas RMI for June dropped to 55.3 from May’s 57.9. The state exported $2.1 billion of agriculture and livestock in 2022. Mexico was the chief destination, capturing 72.5% of the state’s farm exports.
