Declining values in cash rent, farm fuels and farm products signals those servicing the livestock area to get busy helping clients make money to avoid being looked at as an expense. Creighton University released its Rural Mainstreet Index (RMI) for April 2016, and the monthly survey of bank CEOs in a 10-state Midwest region showed a downward trend of several things, including cash rents, equipment sales and farmland prices.
Source: Drovers CattleNetwork, April 22, 2016.
Cash flow is king and will continue to be the difference-maker for producers,” says Jeffery Gerhart, chairman of Bank of Newman Grove in Nebraska. “Those who manage it well will benefit, [and] those who don’t manage it well will not.”
Also see: Agricultural Economist Evaluates Rural Economy, AgWeb, April 25, 2016.
Creighton University’s March Rural Mainstreet Index remains below growth-neutral for the seventh straight month, showing the struggles the rural economy is facing.