OMAHA, Neb. (AP) — The economy remains strong in rural parts of 10 Plains and Western states, but some of the bankers surveyed this month said they are worried about how inflation will affect farmers.
The overall index for the region slipped from November’s 67.7 reading but the report released Thursday said the index remained firmly in positive territory at 66.7 for December. Any score above 50 suggests a growing economy, while a score below 50 suggests a shrinking economy.
Creighton University economist Ernie Goss said the region continues to benefit from low interest rates and strong exports. The USDA estimates that agricultural exports are up 23% over last year.
But the persistently high inflation is a concern as land costs and the price of supplies farmers need are expected to keep growing next year.
“Inflation is real and affecting folks in our service area,” said Jeff Bonnett, CEO of Havana State Bank in Havana Illinois.
Yet the bank CEOs are optimistic about the next six months. The survey’s confidence index rose to 55.2 in December from November’s weak 48.4 reading.
Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming were surveyed.
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