Community Bankers of Iowa Monthly Banker Update May 2014 | Page 16

Creighton

Main Street
Economic Survey

U N I V E R S I T Y

Ernie Goss

Rural Mainstreet Economy for April Strengthens:
Regulations Sink Rural Home Lending

April Survey Results at a Glance:
•
•
•

•

Rural Mainstreet Index rises for a second straight month
indicating modest growth for the month.
Bank CEOs estimated a $4.30 per bushel break-even price
for corn.
Approximately one-fourth of bankers reported that due to
greater regulation, they no longer make owner-occupied
home loans.
A significant number of bankers reported that their bank
would discontinue making residential real estate loans.

For Immediate Release: Apr. 17, 2014
OMAHA, Neb. – After moving below growth neutral in February,
the Rural Mainstreet economy has moved above the 50.0
threshold for two straight months according to today’s April
survey of bank CEOs in a 10-state area.
Overall: The Rural Mainstreet Index (RMI), which ranges
between 0 and 100, with 50.0 representing growth neutral,
increased to 53.2 from 50.1 in March and 48.4 in February.
“The overall index for the Rural Mainstreet Economy indicates
that the areas of the nation highly dependent on agriculture and
energy are experiencing much slower growth than for the same
period in 2013. However, recent boosts to agriculture commodity
prices should boost the economy in the months ahead,”
said Ernie Goss, the Jack A. MacAllister Chair in Regional
Economics at Creighton University Heider College of Business.
This month bankers were asked to name the biggest challenge
for farmers for this year’s planting season. Almost one-third,
or 31.5 percent reported that low agriculture-commodity prices
were the greatest threat to farming profitability. Approximately
27.8 named lack of adequate moisture and 27.6 indicated
high input prices were the biggest challenges for crop farm
operations. Another 13.0 percent indicated high cash rents
represented the greatest 2014 challenge for crop farmers,”
Farming and Ranching: The farmland and ranchland-price
index for April increased slightly to 42.9 from X\