Community Bankers of Iowa Monthly Banker Update October 2013 | Page 15
nesota, Missouri, Nebraska, North Dakota, South Dakota and
Wyoming are included.
within a few miles of Grygla, depending on earlier timely rains.
Some areas to our south have had little moisture since early
July.” Compared to its pre-recession level, Rural Mainstreet employment in Minnesota is currently down by 2.7 percent.
Illinois: The RMI for Illinois advanced to 52.2 from growth
neutral 50.0 in August. The state’s RMI has now remained at or
above growth neutral for 12 straight months. Farmland prices
slumped to 46.2 from 51.2 in August. The state’s new-hiring index dipped to 47.7 from August’s 52.4. However good weather
is boosting the outlook. According to Jim Ashworth, vice chairman of CNB Bank & Trust in Carlinville, “I am expecting good
corn and bean yields. Precipitation for the growing season was
generally “normal” for first time in five years.” Compared to its
pre-recession level, Rural Mainstreet employment in Illinois is
currently down by 4.6 percent.
Missouri: The September RMI for Missouri declined to a still
solid 56.8 from August’s 61.4. The farmland-price index for September declined to a regional high of 81.0 from 85.2 in August.
Missouri’s new-hiring index sank to 71.3 from August’s 78.4.
Compared to its pre-recession level, Rural Mainstreet employment in Missouri is currently down by 9.3 percent.
Iowa: The August RMI for Iowa sank to 53.4 from 56.9 in August. The farmland-price index for September was unchanged
from August’s 53.2. Iowa’s new-hiring index for rose to 52.7 from
August’s 52.4. Compared to its pre-recession level, Rural Mainstreet employment in Iowa is currently down by 2.1 percent.
Nebraska: After moving below growth neutral for January, Nebraska’s Rural Mainstreet Index has been above growth neutral
for eight straight months. However, the September RMI declined
to 53.0 from 56.2 in August. The farmland-price index for September rose to 48.1 from August’s 47.7. Nebraska’s new-hiring
index stood at 49.3, down from 53.4 in August. Compared to its
pre-recession level, Rural Mainstreet employment in Nebraska
is currently down by 1.3 percent.
Minnesota: The September RMI for Minnesota fell to 51.8 from
August’s 54.8. Minnesota’s farmland-price index sank to 39.5
from 40.7 in August. The new-hiring index declined to 43.6 from
48.7 in August. Some portions of the state are being negatively
affected by the drought. For example, Pete Haddeland, CEO
of First National Bank in Mahnomen, said, “Some crops in our
area have been affected by the drought.” Bryan Grove, CEO of
American State Bank in Grygla, summarized what many bankers reported for the month, “Soybeans and corn appear stressed
South Dakota: The September RMI for South Dakota slipped
to 53.8 from August’s 56.8. The farmland-price index for the
state increased to 52.2 from August’s 51.2. South Dakota’s newhiring index for September sank to 52.2 from 55.7 in August.
Compared to its pre-recession level, Rural Mainstreet employment in South Dakota is currently up by 1.2 percent. Drought
conditions are hurting some areas of the state. According to
David Callies, CEO of Miner County Bank in Howard, “Dry
weather has hurt crop yields in our area.”
Tables 1 and 2 summarize survey
findings.
Table 1: Rural Mainstreet Economy Last Two Months and One Year Ago:
(index > 50 indicates expansion)
September
2012
August
2013
September
2013
Area economic index
48.3
55.8
52.4
Loan volume
70.2
70.5
73.5
Checking deposits
48.3
51.7
56.3
Certificates of deposit and savings instruments
38.4
43.5
43.8
Farmland prices
61.6
55.8
54.0
Farm equipment sales
50.0
49.2
48.3
Home sales
58.8
72.5
60.2
Hiring
50.9
59.2
53.2
Retail business
42.9
52.6
49.2
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
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