OMAHA, Neb. (AP) — The agricultural economic system in components of 10 Plains and Western states continues to develop, however rural financial institution CEOs say their greatest fears for the 2021 economic system are extreme inflation and better long-term rates of interest, in accordance with a brand new month-to-month survey of bankers.
The general index of the Rural Mainstreet Survey improved to 52.0 in January from December’s 51.6 — the very best studying since earlier than the onset final 12 months of the coronavirus pandemic.
Any rating above 50 suggests a rising economic system, whereas a rating beneath 50 suggests a shrinking economic system.
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Creighton College economist Ernie Goss, who oversees the survey, reiterated that enhancements in agriculture commodity costs, federal farm help funds and the Federal Reserve’s file low short-term rates of interest have underpinned the area’s economic system. However rural bankers proceed to fret that fewer farmers taking out loans will damage their establishments.
“Roughly 44% of financial institution CEOs anticipate low mortgage demand to be the best concern going through their banks for 2021,” Goss stated. “That is up from 7% that recorded this as a high concern final 12 months at the moment.”
Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming have been surveyed.