News

Survey: Rural economy continues to strengthen

The strength of the farm economy—and the positive impact it is having on the Midwest economy in general—are reflected in the latest Rural Mainstreet bankers’ survey from Creighton University economist Ernie Goss.

In fact, the farming index in that survey rose to a record high of 84-point-one in December, compared with 75-point-four in November. 

The index uses a scale of one to 100.

The overall Rural Mainstreet Index rose to 59-point-seven, its highest level since June 2007.  A rating above 50 indicates the economy will grow. 

Goss describes the Rural Mainstreet economy as “very healthy” and says the economic gap between urban and rural areas is widening.

However, Goss also warns that Europe’s economic problems could slow the growth in agriculture and energy because of a strengthening dollar and weaker exports.  He says that could push agriculture and energy commodity prices lower in the first half of 2012.

The survey covers bankers in 10 Midwest and Great Plains states—Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.