The latest Rural Mainstreet Index from Creighton University shows farmland prices are declining while farmer borrowing is growing.
The overall index for May increased to 12.5 from April’s record low 12.1, but down significantly from March’s weak 35.5. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. Farmland prices continue to slide as May’s reading fell to 39.7 from April’s 40.9.
This is the 77th time in the past 78 months the index has been below growth neutral. The May farm equipment-sales index increased slightly to 21.9 from 20.0 in April. This marks the 80th straight month that the reading has remained below growth neutral 50.0.
Borrowing by farmers expanded for May, but at a slower pace than in April. The borrowing index slipped to 72.2 from April’s 75.8. The checking-deposit index soared to 86.1 from April’s 65.6, while the index for certificates of deposit and other savings instruments increased to 48.6 from 48.4 in April.