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RURAL MAINSTREET INDEX CLIMBS TO PRE-PANDEMIC LEVELS
Oct. 19, 2020
Source: Creighton University news release
To view the complete report, click here.
Omaha - Since falling to a record low in April of this year, the Creighton University Rural Mainstreet Index (RMI) has increased for six straight months. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index rose to its highest level since January, prior to the onset of COVID-19.
Overall: The overall index for October climbed above growth neutral 50.0 to 53.2 from September's 46.9. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.
"Recent improvements in agriculture commodity prices, federal farm support, and the Federal Reserve's record low interest rates have underpinned the Rural Mainstreet Economy. Still, more than one-third, or 35.5%, of bank CEOs reported their local economies were experiencing recessionary economic conditions," said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business.
Farming and ranching: For only the third time in the past 82 months, the farmland price index advanced above growth neutral for October. The October reading jumped to 50.6 from September's 45.0.
The October farm equipment-sales index increased to 37.9 from 32.1 in September. This marks the 85th straight month the reading has remained below growth neutral 50.0.
Bank CEOs estimated that farm equipment sales will fall by an additional 3.1% over the next 12 months.
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