The Creighton University Rural Mainstreet Index (RMI), that was released on Thursday, climbed above the growth neutral threshold, 50.0, for a second consecutive month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Economist Ernie Goss said that the ag sector has actually done fairly well lately. … Farmers generally are doing pretty well cash wise, which is good news for them, but not necessarily for the bankers that the survey covers, but as conditions soften, Goss sees use of credit by farmers as more likely soon. “That’s going to probably turn upward in the weeks and months ahead, probably as input prices do increase a bit,” Goss said. “Some of the agricultural commodity prices will likely come down somewhat. That will be prices of corn, soybeans and others. We are seeing an opening up of China, which is good, more of an opening up. That’s a good market for agricultural commodities from this part of the country.” The expiring farm bill and how its renewal shakes out could mean a lot to rural main street by year’s end.
Source: Hays Post
