OMAHA, NE (KELO.com) — Yet another month in negative territory. That’s the outcome of Creighton University’s monthly survey of small community bankers in our ten-state region. Economist Ernie Goss says high interest rates and low farm commodity prices are to blame.
Bankers in the survey say they’re very pessimistic about the prospects of economic growth for the next six months. The survey revealed a record amount of borrowing in farm country. Goss says the high level of borrowing is an indicator of economic stress for farmers.
High interest rates are cutting into farm profits. Those rates are likely to remain high because of excess government spending that is pushing inflation higher. The survey also revealed farm equipment sales slumping yet again this month. Despite that, Goss says other readings point to a brighter long-term outlook on the regional farm economy.
Farmland prices have increased in the region for 53 straight months – even with higher interest rates. The Rural Mainstreet Index is a survey of community bank CEO’s in our ten-state region.
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