Community Bankers of Iowa Monthly Banker Update August 2013 | Page 19

area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. Illinois: While the RMI for Illinois declined in July to 57.6 from June’s 61.6, it has remained above growth neutral for 10 straight months. Farmland prices sank to 49.1 from 49.4 in June. The state’s new-hiring index dipped to 54.3 from June’s 55.2. Iowa: The July RMI for Iowa expanded slightly to 62.3 from June’s 62.2. The farmland-price advanced to 54.6 from 49.6 in June. Iowa’s new-hiring index for July improved to 58.0 from June’s 55.3. As reported by Steven Lane, CEO of Security Savings Bank in Farnhamville, “Most of the crops in our area were planted late. It’s now up to mother nature to see if it amounts to much.” Minnesota: The July RMI for Minnesota tumbled to a 53.4 from June’s 59.7. Minnesota’s farmland-price index fell to 51.3 from 58.5 in June. The new-hiring index declined to 55.8 from last month’s 61.2. Pete Haddeland, CEO of the First National Bank in Mahnomen, said, “Our crops look great.”

Missouri: The July RMI for Missouri rocketed to regional high of 81.2 from 59.2 in June. The farmland-price index for July remained strong at 78.9, though it was down from June’s 81.5. Missouri’s new-hiring index rose to 84.2 from June’s 76.7. Nebraska: After moving below growth neutral for January, Nebraska’s Rural Mainstreet index has now moved above growth neutral for six straight months. The July RMI climbed to 58.0 from 56.5 in June. The farmland-price index for July fell to 48.5 from June’s 59.2. Nebraska’s new-hiring index stood at 53.9, down slightly from June’s 53.7. Weather remains a problem for some parts of the state. According to Bill McQuillan, president of CNB Community Bank of Greeley, “Pasture conditions continue to deteriorate because of the lack of moisture in the last 30 days.” South Dakota: The July RMI for South Dakota slipped to 59.9 from 60.5 in June. The farmland price index slumped to 50.8 from June’s 51.5. South Dakota’s new-hiring index for July decreased to 55.5 from June’s 56.5. As in other areas of the region, farm conditions are up significantly from last year. According to David Callies, CEO of Miner County Bank in Howard, “Crops are doing very well.”

Tables 1 and 2 summarize survey findings. This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focu