According to the latest Rural Mainstreet Index, farm loan delinquency rates are decreasing instead of increasing despite the challenges faced by farmers due to low commodity prices and farm income. This is a surprising finding, as farmers have been hesitant to make purchases due to higher interest rates and uncertainty surrounding agricultural commodity prices. However, despite these challenges, farmers are still able to repay their loans on time, indicating resilience in the agricultural sector.
The April report also revealed that farm equipment sales continue to decline. This trend is likely due to a combination of factors such as higher interest rates and the uncertainty surrounding agricultural commodity prices. Despite this decline, however, farmland prices have been increasing for the 53rd consecutive month.
Creighton University economist Ernie Goss explained that the agricultural sector is currently struggling and that this is reflected in the survey results. He noted that rural economies are being impacted by these challenges. The findings of the April RMI survey paint a picture of a challenging environment for farmers and agricultural businesses in the surveyed states.