By Hannah Nazarenus
More than half of rural bank CEOs across a 10-state region said that weak grain prices were the top factor in constraining farmers' financial conditions in their area, according to the May Rural Mainstreet Index.
The index created by Ernie Goss, an economist and professor at Creighton University, and Bill McQuillan, former chairman of the Independent Community Bankers of America, measures economic conditions in rural communities dependent on agriculture and energy.
Nebraska’s overall index fell to 51.4 in May from 53.9 in April. Regionally, the index dropped to 45.7 from 47.9, the fourth straight month it has fallen below the growth-neutral threshold of 50.
Goss said tariffs imposed by the Trump administration have drawn retaliation from trading partners, including new tariffs China has placed on Nebraska and U.S. products, along with other countries.
“We're seeing some restrictions on trade coming in. For example, steel and aluminum coming in from Canada. That has some negative impacts on the agricultural economy,” Goss said. “The agricultural equipment sales have been down now for 33 straight months. So that's certainly not good news.”
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