Rural bankers are growing more concerned about the farm economy as higher fuel and fertilizer costs squeeze producers. Creighton University’s September Rural Mainstreet Index fell to 44.7, down from 50.3 in August. Any reading below 50 signals economic contraction. Economist Ernie Goss says higher input costs are outweighing optimism over stronger grain prices.

About 53 percent of bankers identified fertilizer costs as a major concern, while 47 percent pointed to higher fuel prices. Farm equipment sales also remain weak. The equipment index fell to 25, marking the 37th straight month below growth-neutral. Meanwhile, 79 percent of bankers said tariffs are hurting their local agriculture and livestock economies. The six-month economic confidence index fell to just 26.3.

By: NATHAN STUEDLERural bankers are growing more concerned about the farm economy as higher fuel and fertilizer costs squeeze producers. Creighton University’s September Rural Mainstreet Index fell to 44.7, down from 50.3 in August. Any reading below 50 signals economic contraction. Economist Ernie Goss says higher input costs are outweighing optimism over stronger grain prices.About 53 percent of bankers identified fertilizer costs as a major concern, while 47 percent pointed to higher fuel prices. Farm equipment sales also remain weak. The equipment index fell to 25, marking the 37th straight month below growth-neutral. Meanwhile, 79 percent of bankers said tariffs are hurting their local agriculture and livestock economies. The six-month economic confidence index fell to just 26.3.

Rural mainstreet index falls on farm cost concerns