(Omaha) — One of KMAland’s leading indicators still shows the region’s economy stuck in the mud.
Creighton University’s Rural Mainstreet Index report sank below growth neutral for the 11th straight month. The survey of bank CEOs in a 10-state region–including Iowa, Nebraska and Missouri–show July’s overall reading at 41.3–down from 41.7 in June, and lowest reading since November, 2023. Speaking on KMA’s “Morning Line” program Monday morning, Creighton University Economist Dr. Ernie Goss says weak agricultural commodity prices are the main culprit behind the continued economic doldrums.
“For example, corn now for most areas of the region is probably below break even,” said Goss. “So, these farmers with their input costs increasing, but with the costs of their bushels of corn down–and wheat and soybeans, as well–it’s not very good. Of course, livestock’s doing somewhat better. The area’s more dependent on livestock, but generally speaking, most farmers do both. They have livestock and grain. It hasn’t been good.
“We ask about agricultural farm prices. There again, the expectations are down for the next 12 months, as well,” he added.
Goss says regional exports are another drag on the rural economy. Data from the International Trade Association shows exports of agricultural goods and livestock are down by $198 million, or 3.6% from this time last year. Goss blames decreased exports from China and other countries.
“China can’t get out of its own way,” said Goss. “Of course, that mainly means they’re exporting a lot less than their agricultural goods. Some of that’s been replaced with what’s going on in Brazil and other agricultural nations.”
Additionally, farm equipment sales sank for the 12th straight month. July’s equipment sale index plummeted from 31.8 in June to 19.0 this month. You can hear the full interview with Dr. Ernie Goss here:
Creighton University Professor Dr. Ernie Goss analyzes July’s Rural Mainstreet Index report, a survey of bank CEOS in a 10-state region.