by CBI Lobbyist Jeff Boeyink - Partner, LS2 Group The second week of Session contained very little news regarding forthcoming major initiatives but did see a great deal of activity as subcommittees were meeting at a fever pitch as there is clearly a sense of urgency in the Chambers and in the lobby regarding the need to move quickly. That said, there are two significant issues that will likely be introduced in the next seven to 10 days that will have major implications for the telecommunications and energy sectors in Iowa:
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October Survey Results at a Glance:
OMAHA, Neb. (Oct. 19, 2017) – The Creighton University Rural Mainstreet Index rose from September’s reading, but remained below growth neutral, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, like all indices in the survey, ranges between 0 and 100, increased to 45.3 from 39.6 in September. “As a result of weak farm income and low agriculture commodity prices, approximately 9.5 percent of bank CEOs expect farm loan foreclosures to pose the greatest threat to banking operations over the next five years,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. Farming and Ranching: The farmland and ranchland-price index for October slipped to 39.3 from 39.6 in September. This is the 47th straight month the index has fallen below growth neutral 50.0. Bankers were asked to compare current spot prices for a bushel of corn to break even. Only 2.4 percent of bankers indicated that prices between $3.50 and $3.75 were above break even. Approximately 45.2 percent reported current spot prices were below break even. September Rural Mainstreet Index Reaches 2017 Low: More than Half of Bankers Restructured Farm Loans11/15/2017 September Survey Results at a Glance:
OMAHA, Neb. (Sept. 21, 2017) – The Creighton University Rural Mainstreet Index fell to its lowest level for 2017, and remained below growth neutral for September, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, slumped to 39.6, its lowest level since December 2016, and down from 42.2 in August. “As a result of weak farm income, more than one-half, or 51.2 percent of bankers, reported restructuring farm loans while approximately 18.6 percent indicated their bank had increased collateral requirements. Despite weak farm income bank CEOs reported a low 2.1 percent increase in farm loan defaults, and a 4.1 percent rise in farm loan delinquencies,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. August Survey Results at a Glance:
OMAHA, Neb. (Aug. 17, 2017) – After plummeting in July, the Creighton University Rural Mainstreet Index increased slightly for August, but remained below the 50.0 threshold according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, increased to a weak. 42.2 from 40.7 in July which was the index’s lowest level since November of last year. “We continue to record economic weakness stemming from low agriculture commodity prices and fallout from the drought in parts of the region. Approximately 57.6 percent of bankers reported drought conditions were having a negative impact on agriculture production in their area, “said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. However there was significant variability regarding the impact of weather conditions. Bryan Grove, president of American State Bank in. Grygla, Minnesota, said, “Crop conditions overall in northwest Minnesota are good. Small grain harvest is just starting, with good results both in quality and quantity.” July Survey Results at a Glance:
OMAHA, Neb. (July 20, 2017) – After rising to growth neutral for two straight months, the Creighton University Rural Mainstreet Index fell below the 50.0 threshold for July according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, tumbled to 40.7, its lowest level since November of last year, and down from 50.0 in June. “This is the largest one-month decline we have recorded since November 2008, or in the middle of the national recession, “said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Drought conditions in portions of the region, combined with weak grain prices, negatively affected economic conditions, and the economic outlook for a large share of bank CEOs this month.” Scott Tewksbury, president of Heartland State Bank in Edgeley, North Dakota, reported, “As of July 15, this is the third driest year since 1901. Crop conditions are poor and economic activity is weaker than it would be otherwise.” But in neighboring Minnesota, Pete Haddeland, CEO of the First National Bank in Mahnomen, said, “Our crops look good here. The wheat is great.” June Survey Results at a Glance:
OMAHA, Neb. (June 15, 2017) – After dropping below growth neutral for 20 straight months, the Creighton University Rural Mainstreet Index remained above the 50.0 threshold for May and June according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, dipped to 50.0 from 50.1 in May. Prior to May, the last time the overall index was at or above growth neutral was August 2015. “Stabilizing and slightly improving farm commodity prices helped push the overall index at or above growth neutral for the last two months,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “Though grain prices remain below breakeven for most farmers, recent improvements in cattle and hog prices have boosted the overall index for Rural Mainstreet Economy to growth neutral.” One bank CEO reported the recent rally in cattle prices, has been a positive with early contracts. Jim Eckert, president of Anchor State Bank in Anchor, Illinois, said, “Crops in Central Illinois are looking better than in other areas of the state, but the area is much dryer than north or south and there is not much prospect of rain in the immediate future.” by Lisa M. Smith, President & CEO IBA Securities - Division of Broker Dealer Financial Services Corp. The Future is Fiduciary - This rule applies to Wealth Management, Bank Investment Centers, and any bank offering retirement accounts.
Acting as a fiduciary carries a greater level of responsibility. Fiduciaries are bound to act in their clients' best interests. The regulatory framework around fiduciary status has been the subject of much attention and uncertainty in recent years. Adhering to a fiduciary standard gives your investment recommendations a greater weight and level of accountability. This standard requires you to take into account your clients' entire financial circumstances, making holistic wealth management services even more important. The new DOL Fiduciary Rule makes one a fiduciary when a recommendation is made with respect to rollovers, transfers, or distributions from a Qualified Retirement Plan (including 401ks) or IRA -- which is collectively known as "retirement asset movement" -- and is paid a fee or other compensation as a result. In addition, the DOL Fiduciary Rule also includes existing retirement accounts for which you are advising. The retirement asset movement must be in the client's best interest. The advice regarding retirement asset movement and reasons why it is in the clients' best interest will need to be documented and maintained. As a result, one needs a number of processes and resources in place by June 9, 2017, when the rule goes into effect. May Survey Results at a Glance:
OMAHA, Neb. (May 18, 2017) – After dropping below growth neutral for 20 straight months, the Creighton University Rural Mainstreet Index moved above the 50.0 threshold for May according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, climbed to 50.1 from 44.6 in April. May’s reading was the highest recorded reading since July 2015. The last time the overall index was at or above growth neutral was August 2015. “Stabilizing and slightly improving farm commodity prices helped push the overall index into a weak but above growth neutral for May,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. “The U.S. Department of Agriculture is projecting that net U.S. farm income will sink by 8.7 percent to $62.3 billion for 2017, the fourth consecutive year of declines after reaching a record high in 2013. This downward trend has weighted on our survey results for almost two years.” This month, and in May 2016, bank CEOs were asked to name the biggest economic challenge to their banking operations over the next five years. The largest share of bankers, or 28.9 percent, named rising regulatory costs as the top challenge or risk. This is almost the same percent as 2016. More than one in five, or 26.7 percent, detailed government subsidized competition from Farm Credit and credit unions as the greatest challenge, or almost double the 13.6 percent reported in May 2016. April Survey Results at a Glance:
OMAHA, Neb. (April 20, 2017) – The Creighton University Rural Mainstreet Index remained weak with a reading below growth neutral for the 20th straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The index, which ranges between 0 and 100, slipped to 44.6 from 45.3 in March. The last time the overall index was at or above growth neutral was August 2015. “Weak farm commodity prices continue to squeeze Rural Mainstreet economies. Over the last 12 months, livestock commodity prices have tumbled by 5.8 percent and grain commodity prices have slumped by 4.5 percent. The U.S. Department of Agriculture is estimating 2017 will mark the fourth consecutive year that farm income has declined. This downward trend has pushed our survey results into negative territory,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. |
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