News

Rural bankers’ confidence level slips in August

The confidence of rural bankers, when it comes to the ag economy, slipped in August.

Concerns about drought conditions and agricultural trade were the factors behind the continued pessimistic outlook, according to Creighton University economist Ernie Goss, who compiles the monthly Rural Mainstreet Index. Goss says 58 percent of bank CEOs surveyed in a 10-state region reported drought conditions were having a negative impact on ag production in their area.

On the other hand, the bankers were a bit more optimistic about farmland values.

The farmland and ranchland price index for August rose to its highest level since July of 2014. On average bankers expect farmland prices to decline by another 3.5 percent over the next year.  But that’s an improvement over this time last year when bank CEOs, on average, projected a seven percent decline.

Asked about cash rents, bankers reported an average of 241 dollars per acre this year, compared to 252 dollars per acre last year.