TOPEKA, Kan.- Conditions in the Kansas rural economy sank this month, according to the latest economic report from Creighton University.
The Kansas Rural Mainstreet Index for March fell to 30.2 from February’s 37.9. A score of 50 is considered growth neutral, while anything below 50 is considered contraction.
“Higher interest rates, weaker agriculture commodity prices and higher grain storage costs pushed the overall reading to its lowest level since the early months of the pandemic,” said economics professor Ernie Goss of March’s report.
Individual Indicators
The state’s farmland price index fell to 52.1 in March, down from 54.1 in February.
The new hiring index for Kansas increased to 47.7 from 45.4 in February. Over the past 12 months, U.S. Bureau of Labor Statistics data indicate that the state Rural Mainstreet Economy lost 0.3% of its jobs compared to a gain of 0.8% for urban areas of the state.
Regional Numbers
The region’s overall reading for March fell to 38.0, its lowest level since June 2020, and down from 46.2 in February. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
Almost one in three bankers surveyed in the region indicated their bank had tightened credit standards on farm loans. Farmland prices expanded for the 52nd straight month.
The report analyzes data from a state region including Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, and Wyoming.
