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Rural Mainstreet Index is up despite flooding, low commodity prices

The Rural Mainstreet Index for March shows the rural economy is expanding even though the ag industry continues to face challenges.  

“Agriculture continues to limp along,” he says. “It has a lot to do with trade agreements and agriculture commodity prices continue to be weaker than we’d like to see.”

Ernie Goss with Creighton University in Nebraska says recent floods negatively influenced the economic outlook of ag bankers surveyed even though the survey occurred before most of the negative impacts of flooding were known.

“About 25 percent said flooding had a significant negative or catastrophic impact and a lot of that is centered in Nebraska, Iowa, and in Missouri,” he says.

He tells Brownfield he anticipates the full impact of flooding will be reflected in the next survey.

Goss says although the survey was stronger this month, the crop insurance program will be very important going forward.

“Crops in the ground are covered but what about crops in the bins- those are not covered by crop insurance so I think that’s where the disaster relief programs will come into play,” he says.

The Rural Mainstreet Index is a survey of ag bankers in 10 states including: Illinois, Iowa, Minnesota, Missouri, and South Dakota.

The index for March was 52.9, its highest level since December. The index ranges between 0 and 100 with 50 representing neutral growth.  

Audio: Ernie Goss, Creighton University

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