RMI Survey: Farmland Prices Climb to Record High

For the 12th straight month, the Creighton University Rural Mainstreet Index (RMI) remained above growth neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.        

Overall: The region’s overall reading for November rose to 67.7 from October’s 66.1. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Solid grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the rural mainstreet economy. USDA data show that 2021 year-to-date agriculture exports are more than 23.2% above that for the same period in 2020. This has been an important factor supporting the rural mainstreet economy,” says Creighton University’s Dr. Ernie Goss, PhD, who conducts the survey.

Farming and ranching: The region’s farmland price index improved to a very strong, and record high of 85.5 from October’s 81.5. October’s reading represented the 15th straight month that the index has moved above growth neutral. 

The November farm equipment-sales index slipped to a strong 62.1 from 64.8 in October.  Readings for farmland prices and equipment sales over the last several months represent the strongest consistent growth since 2012.

Confidence: The confidence index, which reflects bank CEO expectations for the economy six months out sank for the fifth straight month to 48.4, its lowest level since August of last year, and down from October’s 51.8.

The survey represents an early snapshot of the economy of rural agriculturally and energy-dependent portions of the nation. The RMI is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300.