(OMAHA, NE) — Rural bankers are growing more concerned about the farm economy as higher fuel and fertilizer costs weigh on producers. Creighton University’s September Rural Mainstreet Index fell to 44.7, down from 50.3 in August. Readings below 50 indicate economic contraction.
“Pessimism from higher fuel and fertilizer costs exceeded the optimism stemming from higher grain prices, according to bankers across the 10-state region,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Bankers identified fertilizer and fuel as the biggest financial pressures facing agricultural customers. About 53 percent cited higher fertilizer costs, while 47 percent pointed to soaring fuel prices. Farm equipment sales also remain weak. The September index came in at just 25, marking the 37th consecutive month below growth-neutral. Meanwhile, 79 percent of bankers said tariffs are negatively affecting their local agriculture and livestock economies. Goss says rural bankers remain pessimistic about the next six months, with the economic confidence index falling to 26.3 in September.
Read more of the Rural Mainstreet Index here: https://www.creighton.edu/economicoutlook/mainstreeteconomy
SOURCE: Rural Mainstreet Index and NAFB News Service
