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Midwestern Rural Mainstreet Index Remains Weak

field, farmWhile the Creighton University Rural Mainstreet Index rose for February, it remains weak, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture. Overall, the Index, which ranges between 0 and 100, increased to 37.0 from January’s 34.8. This is the sixth straight month the overall index has moved below growth neutral. Organizer Ernie Goss says recent declines are “the result of lower agriculture and energy commodity prices and downturns in manufacturing.” The farmland and ranchland price index for February climbed to 29.8 from January’s 23.9. This is the 27th straight month the index has moved below growth neutral. Bank CEOs reported average annual cash rent for farmland, excluding pastureland, of $221. This is down by approximately 15 percent from July 2015. The February farm equipment-sales index climbed to 11.3 from January’s record low 7.0. Finally, the confidence index, which reflects expectations for the economy six months out, moved slightly higher to 30.4 from 29.4 in January, indicating a very pessimistic outlook among bankers.

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