Last week, Creighton University released the April Rural Mainstreet Survey. The April suggested that the Midwest economy remains weak, but there are also signs it may soon improve.

The good news is the overall Rural Mainstreet Index is up for the second consecutive month to 21.7 from last month’s 18.7, but the Farm Equipment Sales Index hit a new record low. “While the Rural Mainstreet Index (RMI) remains weak, I think it has bottomed out. Since February of last year, the RMI has trended downward” said Creighton University economist Ernie Goss. Could this mean a recovery of the Rural Mainstreet Economy? Progress will be slow, but a recovery none the less.

The next big change came in farmland price. The Farmland Price Index rose to 41.2; the first increase since last November when it finally fell below 50 (below 50 represents negative growth and over 50 is positive growth). We said last month, farmland prices may have bottomed out. We see this as an excellent time to get into farmland.



The Confidence Index, which is the bank presidents estimate of the economy six months from now, increased by 10 points to 45.6. Gross commented “This is further evidence that the Rural Mainstreet Index has bottomed out.  However, I do expect any recovery to be as much as six months out.”

The Loan Volume Index rose to 50.6, the first time above 50 since October of 2008. It joins the Checking Deposits Index at 66.7 and the Certificates of Deposits Index at 61.0 as the only indexes showing positive growth by being above 50.

Interestingly enough, the Homes Sales Index rose from a weak 24.6 in March to 30.8 in April. The survey noted, “This month, bankers were asked to compare April 2009 housing prices to April 2008. More than one-fourth or 25.5 percent of the bankers reported that prices had declined by more than 10 percent, while 56.9 percent indicated that housing prices declined by less than 10 percent.”

These indexes are comprised of bank CEOs and presidents of a 10-state area. There are about 1,300 bankers surveyed each month.