Farmland Prices Fall Below Growth Neutral for Second Consecutive Month in Rural Mainstreet Index

Aug 01, 2024

For the 10th consecutive month, the Rural Mainstreet Index (RMI) has fallen below the neutral growth threshold. This downturn is accompanied by a notable decline in farmland prices and a continued slump in farm equipment sales, as revealed by the latest survey results from Creighton University.

The RMI, a key measure of economic activity in nonurban, agriculturally and energy-dependent regions across 10 states, has remained under the growth neutral mark of 50.0. The index, which tracks conditions in approximately 200 rural communities, reflects ongoing economic stress or growth in these areas, according to Creighton.

The June 2024 survey revealed that farmland prices have fallen for the second month in a row after being above growth neutral for 53 consecutive months. The peak for farmland prices this year was in January, where it was at 64.0, indicating a significant downturn from earlier in the year.

Farm equipment sales also experienced a decline, dropping below growth neutral for the 12th time in the past 13 months. The last period of growth neutral or higher farm equipment sales was in July 2023. Since then, sales have struggled, with February marking the peak of farm equipment sales for this year at 49.5.

Delinquency rates for farm and business loans have remained relatively stable over the past six months, according to Creighton’s survey. However, there have been some changes in loan policies: 8.7% of bankers reported increasing farm loan rejection rates, while 13.0% and 4.3% adjusted their loan-to-value ratios by restructuring and reducing them, respectively.

Trade data from the International Trade Assn. reveals a 4.1% decline in regional exports of agricultural goods and livestock for 2024 year-to-date compared to the same period in 2023. This drop in exports adds another layer of difficulty for the rural economy, already strained by falling prices and sluggish equipment sales.

Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are the 10 states included in the data.

Source : Farm Equipment

Video: New Solution Powers Efficient Pork Growth

Alltech has introduced Olerix, an innovative phytogenic blend created to promote growth and feed efficiency in pigs. Through a proprietary coating process, the bioactive blend of phytogenic compounds used in Olerix is designed to outlast the manufacturing process, ensuring consistent outcomes from feed to finish. The result is a high-impact efficiency solution that provides consistent support for gut health, feed efficiency, immune function and growth performance. Olerix is backed by validated trials conducted under modern pork production conditions.

“As the industry searches for technology to drive profitability forward in a more sustainable manner, we’re thrilled to join that effort with our Olerix technology,” said Mark Hulsebus, general manager for U.S. pork at Alltech. “Our work in this phytogenic space is yielding very encouraging results, and we’re excited to make this new opportunity available to pork producers focused on optimizing feed efficiency and growth rates.”

“Olerix represents the next generation of phytogenic technology — combining feed efficiency, livability and immune support into a practical commercial solution producers can implement today,” said Andy Rash, U.S. monogastric director at Alltech.