The Rural Mainstreet Index (RMI) increased slightly this month as bankers are optimistic about the agriculture environment with historically early planting and above average crop conditions. The farmland price index declined in May, indicating slower growth in values, but remained above growth neutral for the 28th consecutive month.
According to Creighton University economist Ernie Goss, "Even though downturns in energy prices are a positive for the Rural Mainstreet economy, I expect softer agricultural commodity prices and slower global economic growth to restrain growth in the months ahead."
Bankers were asked this month in regards to the trends in financing of farmland in the past year. 34% indicated that farmland purchases using financing had declined in the past year and only 11% said it had increased. "Very strong farm income has allowed farmers to pay cash for their farmland purchases," said Goss.
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