- Overall index remains above growth neutral for the 11th time in past 12 months.
- Bank CEOs project a 6.1 percent decline in farm equipment sales over the next year compared to a 6.9 percent reduction last February.
- Weak farm income has pushed almost two-thirds of banks to increase collateral requirements on farm loans.
- Almost one-third of banks have increased the farm loan rejection rate due to anemic farm income.
Overall: The overall index sank to 50.2 from January’s 51.5. This was the 11th time in the past 12 months the index has remained above growth neutral. The index ranges between 0 and 100 with 50.0 representing growth neutral.
“Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture. However, the negative impacts of tariffs and low agriculture commodity prices continue to weaken the farm sector,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.