It seems as if many of us are obsessed with measurements -- metrics? -- that we can dissect to see if things are indeed getting better. One we look at is a monthly snapshot called the Rural Mainstreet Index.
It comes from the Creighton University Economist Ernie Goss, who also publishes the monthly Mid-America Index (see Market Matters on Oct. 2), and this one is compiled from a survey of rural bankers in the 11-state area.
The RMI gained one point in October, to 37.5. A reading of 50.0 is considered growth neutral, and it's been below that benchmark for 20 months now.
"The decline in farm income continues to weigh on the rural, agriculturally dependent economy with few signals that the economic downturn is coming to an end," Goss said in the news release.
The downturn in farm income has negatively affected both farmland prices and sales of farm equipment. The October farmland price index rose to a weak 43.0 from September's 41.1. This was the 12th straight month that the index moved below growth neutral. By comparison, the farmland price index in October 2008 was 60.5.
However, there are pockets of very strong farmland sales. As reported by Larry Rogers, CEO of the First Bank of Utica in Utica, Neb., farmland in his area recently sold for $6,650 per acre, indicating a very strong market for farmland.
By state, here's how the farmland price index looks:
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