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

This month bankers were also asked to gauge the impact of
partial federal government shutdown on the area economy. Approximately 25.9 percent assessed that the impact was negative
while the remaining 74.1 percent reported little or no impact from
the shutdown.

from 51.8 in September. Minnesota’s farmland-price index rose
to a weak 48.3 from September’s 39.5. The new-hiring index
expanded to 46.3 from September’s 43.6. According to Pete
Haddeland, CEO of First National Bank in Mahnomen, “Crops
look good but yields are down a little. Good harvest.”

Home and retail sales: The October home-sales index declined
to a still solid 58.0 from September’s 60.2. The October retailsales index rose to 52.6 from 49.2 in September.
“With the uncertainty surrounding the Washington Congressional
deliberations, I was surprised to see retail sales move higher.
The Rural Mainstreet housing market continues to rebound at a
healthy pace,” said Goss.

Missouri: The October RMI for Missouri declined to a still solid
55.4 from September’s 56.8. The farmland-price index for October sank to 63.2 from September’s 81.0. Missouri’s new-hiring
index expanded to 73.9 from September’s 71.3.

Illinois: The RMI for Illinois advanced to 54.1 from September’s
52.2. The RMI has now remained at or above growth neutral for
13 straight months. Farmland prices slumped to 43.1 from 46.2
in September. The state’s new-hiring index rose to 50.4 from
September’s 47.7. According to Jim Ashworth, vice chairman of
CNB Bank & Trust in Carlinville, “Grain crop yields are still being
reported as ‘good’, although the corn did not dry down as far as
desired due to a relatively cool growing season.”
Iowa: The September RMI for Iowa climbed to 55.3 from September’s 53.4. The farmland-price index for October fell to 50.6
from 53.2 in September. Iowa’s new-hiring index for October
rose to 55.4 from September’s 52.7.
Minnesota: The October RMI for Minnesota expanded to 53.7

Nebraska: After moving below growth neutral for January, Nebraska’s Rural Mainstreet Index has been above growth neutral
for nine straight months. The October RMI increased to 54.9
from 53.0 in September. The farmland-price index for October
dipped to 45.5 from September’s 48.1. Nebraska’s new-hiring
index stood at 51.9, which was up from 49.3 in September. Bill
McQuillan, president of CNB Community Bank in Greeley, said,
“The Early 2013 soybean harvest yields are 10 to 15% above
historical averages. Local cattle prices continue to be very, very
strong and positive for our local producers.”
South Dakota: The October RMI for South Dakota sank to 48.7
from September’s 55.7. The farmland-price index for the state
for October was unchanged from September’s 49.8. South Dakota’s new-hiring index for October expanded to 54.8 from 52.2
in September. According to David Callies, CEO of Miner County
Bank in Howard, “Harvest is going well with yields about average. Government shut down continues to be a big problem.”

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

Tables 1 and 2 summarize survey
findings.

September
2013

October 2013

Area economic index

56.6

52.4

54.3

Loan volume

44.2

73.5

64.7

Checking deposits

66.7

56.3

48.3

Certificates of deposit and savings instruments

42.0

43.8

35.4

Farmland prices

71.7

54.0

50.9

Farm equipment sales

60.5

48.3

44.6

Home sales

59.8

60.2

58.0

Hiring

51.5

53.2

56.1

Retail business

48.6

49.2

52.6

Confidence index (area economy six months out)

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, CEO of
CNB Community Bank of Greeley, Neb., created the monthly economic survey in 2005.

October
2012

50.7

46.1

44.7

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