Farmland prices, equipment sales in Midwest continue to fall; grain prices down 29.4 percent

The Rural Mainstreet Index—based on a survey of bankers in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming—declined for the fourth straight month and reached its lowest level in more than two years, Steve Jordon reports for the Omaha World-Herald. Farmland prices dropped for the 10th consecutive month, while equipment sales hit a record low.

The index dropped from 48.3 to 48.2 and is down from 60.5 in June, 2013, Jordon writes. Anything below 50 indicates economic decline, while figures above 50 show growth. Equipment sales are expected to decline 13.8 percent for the year, with some dealers forced to go out of business.

Grain prices are the biggest concern, Jordon writes. Prices are down 29.4 percent from this time a year ago, and with low prices farmers are not recouping their costs, said economist Ernie Goss of Creighton University, which produces the index. Goss told Jordon, “This huge decline has had a significant negative influence on most of the factors from our surveys over the last several months.” (Read more)