A brand new month-to-month survey of bankers in elements of 10 Plains and Western states exhibits the area’s rural economic system stays sturdy
OMAHA, Neb. (AP) – The economic system in rural elements of 10 Plains and Western states stays sturdy, in keeping with a brand new month-to-month survey of bankers within the area launched Thursday, however these bankers stated they’ve rising considerations in regards to the rising prices related to operating farms.
The general Rural Mainstreet financial index fell in January to 61.1 from December’s 66.7. Any rating above 50 suggests a rising economic system, whereas a rating beneath 50 suggests a shrinking economic system.
“Strong grain costs, the Federal Reserve’s record-low short-term rates of interest, and rising agricultural exports have underpinned the Rural Mainstreet Financial system,” Creighton College economist Ernie Goss, who oversees the survey, stated.
Bankers surveyed listed their prime concern for farmers in 2022 as rising inflation that is driving up the costs of farm provides, from gasoline to fertilizer. Disruptions of the supply of farm provides ranked second amongst bankers’ considerations, and rising rates of interest ranked third.
“Inflation is a major problem right here,” Jim Eckert, president of the Anchor State Financial institution in Anchor, Illinois, stated for the report. “Gasoline costs have almost doubled since November 2020.”
Jim Brown, CEO of Hardin County Financial savings Financial institution in Eldora, Iowa, stated that rising prices “have raised our common farmer break-even factors,” however that present commodity costs nonetheless have most farmers displaying average positive aspects.
Regardless of the considerations, financial institution CEOs are optimistic in regards to the subsequent six months. The survey’s confidence index rose to 61.1 from December’s 55.2.
Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming had been surveyed.