Area Bankers Report 2022 Farm Challenges
UNDATED -- For the fourth month in a row, a survey of rural bankers shows a decline in confidence.
The Rural Mainstreet Index is a monthly survey of rural bankers in ten agriculture or energy-dependent states. For July, the RMI dropped to 46, down from 49.8 in June. Any number below 50 indicates negative growth. It’s the fourth overall drop and the second below-neutral result in a row.
This month’s report is the worst back-to-back results since April/May 2020.
The surveyed bankers noted rising input prices, falling grain prices, and drought as the key risks facing farmers this year. However, even with the 2022 input cost increases, the bankers surveyed expect a ½-point decline in farm loan delinquencies.
The survey also reported farmland prices are expected to rise two percent in the next year.
To view the latest Rural Mainstreet Index, click here.