Jan. survey of rural Midwest bankers shows strong economy but worries about inflation, supply-chain problems

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Rural bankers in 10 Midwestern states that rely on agriculture and energy saw the 14th straight month of positive economic growth in a monthly survey, though they voiced concerns about supply-chain problems and federal financial policy. The Rural Mainstreet Index polls bankers in about 200 rural places averaging 1,300 population in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.

"Solid grain prices, the Federal Reserve’s record-low short-term interest rates, and growing agricultural exports have underpinned the Rural Mainstreet Economy," said Creighton University economist Ernie Goss, who compiles the index.

The overall Rural Mainstreet Index fell to 61.1 from December's 66.7; anything over 50 is above growth-neutral. However, the confidence index, which measures predictions of the area's economy six months out, rose from 55.2 to 61.1.

Bankers cited rising farm input prices as the greatest threat to the economy this year, followed by delivery disruptions of farm inputs, rising interest rates, a drop in federal financial support, tariffs and trade restrictions, and disrupted delivery of farm products.