Bank CEOs: Rural economy slowed this month

The rural economy weakened this month amid relatively low commodity prices and lackluster export numbers, according to Creighton University’s monthly survey of bank CEOs in rural areas of a 10-state region. .The region’s rural mainstreet index fell below the growth neutral score of 50 for the first time in three months, to 47.9 from 52.0 in January. February’s confidence index increased nearly two points, to 45.8 from 44.0 in January. Creighton University Chair in Regional Economics Ernie Goss said confidence remains weighed down by lackluster grain prices and negative farm cash flows along with tariff retaliation concerns, despite $12 billion in federal farm support from the Trump administration to combat the impact from tariffs. The index tracking farm equipment sales fell below 50 for the 30th straight month, dropping to 16.7 from 18.8 in January. Goss said the drop shows the lack of impact on farm equipment sales from lower interest rates and federal dollars. The index tracking farmland prices also remained below growth-neutral, falling half a point to 45.5. Regional exports of agricultural goods and livestock fell 6.6 percent in the first 11 months of last year to $10.8 billion from $11.5 billion during the same period in 2024. “Pullbacks in farm exports for 2025 continue to undermine the regional farm economy,” Goss said. Farm loan delinquency rates remain at a relatively low rate of 1.5 percent, according to the report. Three of four bank CEOs called on Congress to offer more financial support to farmers. The survey includes CEOs in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. Other report findings included:The loan volume index fell to 54.3 from 62.0 in January, while the checking deposit index dropped five points to 60.9. The region’s index for certificates of deposits fell four points to 50.0. The new hiring index remained around growth-neutral, falling to 49.1 from 50.0 in January. “Job gains for non-farm rural employers have remained soft for the last several months,” Goss said. February’s home and retail sales index fell five points to 43.2, while regional retail sales dropped six points to 42.1.