Community Bankers of Iowa Monthly Banker Update February 2014 | Page 17

(Rural Mainstreet continued from previous page)
S.D., said, “There is major concern for the coming year on ag
cash flow because of low corn prices and high corn inventory.”
Home and Retail Sales: The January home-sales index
fell below growth neutral to 49.3 from December’s 53.1 and
November’s even stronger 56.2. The January retail-sales index
sank to a fragile 46.2 from December’s much healthier 54.7.
“Higher mortgage rates and lower agriculture commodity prices
cooled rural housing and retail sales strength significantly,” said
Goss.
Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a
10-state 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. The survey is
supported by a grant from Security State Bank in Ansley, Neb.
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, focusing on approximately 200 rural
communities with an average population of 1,300. It gives the
most current real-time analysis of the rural economy. Goss and
Bill McQuillan, former chairman of the Independent Community
Banks of America, created the monthly economic survey in
2005.
Colorado: For the 16th straight month, Colorado’s Rural
Mainstreet Index (RMI) remained above 50.0, though it slipped
to 51.0 from 55.6 in December. The farmland and ranchlandprice index tumbled to 41.0 from December’s much stronger
69.4. Colorado’s hiring index for January fell to 51.4 from
December’s 58.7.
Illinois: After moving above growth neutral for 15 straight
months, the RMI for Illinois declined to 49.7 for January and was
down from December’s 54.1. The Illinois farmland-price index
plunged to 31.7 from December’s 47.3. The state’s new-hiring
index fell to 44.0 from 48.9 in December.
Iowa: The January RMI for Iowa declined to 50.8 from
December’s 55.3. The farmland-price index for January sank to
38.1 from December’s 52.3. Iowa’s new-hiring index for January
(Rural Mainstreet continued on next page)

Tables 1 and 2 summarize survey findings
Next month’s survey results will be released on the third Thursday of the month, Feb. 20.

Table 1: Rural Mainstreet Economy Last Two Months and One Year Ago:
(index > 50 indicates expansion)
January
2013

December
2013

January
2014

Area economic index

55.6

56.1

50.8

Loan volume

39.0

66.7

57.8

Checking deposits

78.1

66.0

68.2

Certificates of deposit and savin