by CBI Lobbyist Jeff Boeyink - Partner, LS2 Group Overview / Major Events The Iowa General Assembly concluded its business on Saturday evening, May 5, with House passage of SF 2417, the final version of tax reform / reduction. House, Senate, and Governor agree on tax reform and reduction Late last week the House, Senate, and Governor reached final agreement on the details of their tax reform and reduction effort. That agreement became SF 2417 and it was the last bill to clear the Legislature before they headed home to face the voters. Here are the highlights of SF 2417:
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March Survey Results at a Glance:
OMAHA, Neb. (March 15, 2018) – The Creighton University Rural Mainstreet Index slipped in March, but remained above growth neutral for a second straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. This is the first time since the middle of 2015 that we have recorded two straight months of overall indices above growth neutral.
Overall: The overall index dipped slightly to a solid 54.7 from 54.8 in February. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Surveys over the past several months indicate that the Rural Mainstreet economy is trending upward with improving, but slow economic growth. However, weak agriculture commodity prices continue to weigh on the rural economy,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Jim Eckert, president of Anchor State Bank in Anchor, Illinois, reported, “Recent commodity price increases have helped the mood of our farmers. Our area is somewhat dry and good spring rains will be essential for a good 2018 crop.” Farming and Ranching: The farmland and ranchland-price index for March dropped to 42.7 from February’s 46.3. This is the 52nd straight month the index has fallen below growth neutral 50.0. February Survey Results at a Glance:
OMAHA, Neb. (Feb. 15, 2018) – The Creighton University Rural Mainstreet Index sprang higher in February from January’s below growth neutral reading. This is the first time since July 2015 the overall index has advanced above 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 overall index soared to 54.8 from 46.8 in January, the highest reading for the overall index since May 2014. The index ranges between 0 and 100 with 50.0 representing growth neutral. “Given that fewer than one in four, or 23.9 percent, of bankers reported economic growth in their area, the solid February reading surprised me. However, weak agriculture commodity prices continue to weigh on the rural economy,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Jim Eckert, president of Anchor State Bank in Anchor, Illinois, reported, “We are seeing farmers with somewhat reduced income and moderate operating loan carryovers. However, without rain prior to planting, 2018 could be a bad year.” Farming and Ranching: The farmland and ranchland-price index for February rose to 46.3 from 42.2 for January. This is the highest reading since July 2014, but it is the 51st straight month the index has fallen below growth neutral 50.0.
January Survey Results at a Glance:
OMAHA, Neb. (Jan. 18, 2018) – The Creighton University Rural Mainstreet Index declined slightly in January from December’s weak reading, remaining 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 with 50.0 representing growth neutral, fell to 46.8 from 47.8 in December. Though the overall index remained below growth neutral, it is significantly higher than the reading for January 2017. “While the overall Rural Mainstreet Index (RMI) for January declined and remained below growth neutral, year-over-year indices are trending higher. Clearly, based on our recent surveys, the negatives are getting less negative,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. When asked to name the greatest 2018 economic challenge for their banks, four in 10 bankers reported that loan defaults represented the biggest challenges for the year ahead. This is well ahead of the second ranked challenge of competition from Farm Credit coming in at 15.6 percent. Farming and Ranching: The farmland and ranchland-price index for January rose to 42.2 from 39.8 in December. This is the 50th straight month the index has fallen below growth neutral 50.0. December Survey Results at a Glance:
OMAHA, Neb. (Dec. 21, 2017) – The Creighton University Rural Mainstreet Index improved from November’s weak 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 with 50.0 representing growth neutral, expanded to 47.8 from 44.7 in November. While the overall index remained below growth neutral, it is up approximately 11.4 percent from December, 2016. “While the overall Rural Mainstreet Index (RMI) for December remained below growth neutral, this is the highest December reading that we have recorded since 2014. Clearly, based on our recent surveys, the negatives are getting less negative,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Only one-fifth, or 20.4 percent, of bank CEOs reported that their local economy was expanding. While this indicator remains bearish, it is well up from the 8.7 percent reporting an expanding local economy in February 2016.
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.” |
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