Community Bankers of Iowa Monthly Banker Update July 2014 | Page 13

(Rural Mainstreet continued from previous page)
55.5 from last month’s 51.6. “Despite international tensions
and rising oil prices, higher agriculture commodity prices,
especially for beef and pork, pushed the outlook higher for the
month.”
Home and Retail Sales: The June home-sales index climbed
to 66.1 from 63.9 in May. The June retail-sales index increased
only slightly to 51.8 from 51.7 in May. “Improving weather
encouraged an upturn in home purchases. However, retail
sales are down from this time last year,” 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,
Nebraska.

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: After moving below growth neutral for February,
Colorado’s Rural Mainstreet Index (RMI) remained above the
50.0 threshold for the fourth straight month, though it dipped to
54.4 from May’s 56.3. The farmland and ranchland-price index
declined to 54.8 from 55.4 in May. Colorado’s hiring index for
June decreased to a healthy 67.3 from 70.1 in May.
Illinois: After increasing for two straight months Illinois’ RMI
fell, moving to 53.9 from May’s 55.8. The Illinois farmland-price
index rose to 46.6 from 42.3 in May. The state’s new-hiring
index improved to 60.8 from May’s 59.6.
Iowa: The June RMI for Iowa expanded to 56.8 from May’s
(Rural Mainstreet continued on next page)

This survey represents an early snapshot of the economy

Tables 1 and 2 summarize survey findings
Next month’s survey results will be released on the third Thursday of the month, July 17.

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

May
2014

June
2014

Area economic index

60.5

55.6

53.6

Loan volume

66.7

75.4

74.6

Checking deposits

48.5

54.8

50.9

Certificates of deposit and savings instruments

33.6

40.3

39.4

Farmland prices

58.4

46.7

49.1

Farm equipment sales

53.2

33.6

35.0

Home sales

78.1

63.9

66.1

Hiring

61.4

64.0

63.2

Retail business

53.9

51.7

51.8

Confidence index (area economy six months out)

60.0

51.6

55.5

Table 2: The Rural Mainstreet Economy, June 2014
Percentage of bankers reporting
Less
Than 5%

What percent of farmland purchases in your area
do you estimate are cash sales (not financed)?

10%
To 19%

20%
To 32%

33%
To 75%

13.0%

35.2%

31.5%

13.0%

7.5%

Less
Than 5%

For 2014, what percent of farmland sales in your
area have been to nonfarm investors?

5%
To 10%

5%
To 10%

10%
To 19%

20%
To 32%

33%
To 75%

14.7%

14.8%

16.7%

27.8%

26.0%

Little or no impact:
No producers
How have recent high prices of beef and pork
affected economic activity in your area?

Little or no impact:
Low inventories

Increased overall
economic activity

23.6%

29.1%

47.3%

CBI BANKER UPDATE | JULY 2014

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