News

Rural Mainstreet Index remains weak

For the eighth straight month, Creighton University’s Rural Mainstreet Index fell below growth neutral.  The survey represents a snapshot of the economy in parts of the country that are dependent on agriculture and energy sectors.

Fifty is considered neutral growth and the overall index dropped to 38.2 this month, down from March’s 40.2.

Ernie Goss, professor of economics at Creighton University conducts the survey.  He says April’s downturn was slightly unexpected.  “It had been improving for two straight months,” he says.  “Improving might be too strong of word, but the indexes had gotten higher, although still below growth neutral.  So it was surprising to see that.”

Goss says the survey shows cash rents are declining. “It’s not at a real fast pace,” he says.  “And land prices, depending on the area, but overall – along with cash rents – according to our survey of bank CEO’s is moving down 6 to 7 percent.”

He tells Brownfield there are a few factors that could help the index.  “I think there is a lot to be said for opening up trade,” he says. “That would of course be good and a weaker dollar would also be helpful.”

The farm and ranchland price index from April increased to 26.8; up from 20.2 in March.  He says this is the 29^th consecutive month that the index has been below growth neutral.

AUDIO: Ernie Goss, Rural Mainstreet Index, Creighton University