In a surprising turn of events, the latest Rural Mainstreet Index has fallen below growth neutral for the eighth consecutive month, according to the April RMI survey. Despite facing challenges such as low commodity prices and farm income, farmers are still able to repay their loans on time. However, this does not mean that they are without financial strain. Farm equipment sales continue to decline, with farmers hesitant to make purchases due to higher interest rates and uncertainty surrounding agricultural commodity prices.
The agricultural sector is currently struggling, which is reflected in the survey results. Creighton University economist Ernie Goss noted that this is having a significant impact on rural economies in the surveyed states. The index is a monthly survey of agricultural bankers in 10 states, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota.
One bright spot for farmers is that farmland prices have been increasing for the 53rd consecutive month. Goss highlighted the ongoing struggles in the agricultural sector and urged policymakers to take action to address these issues. The findings of the April RMI survey paint a picture of a challenging environment for farmers and agricultural businesses in the surveyed states.