Negative Cash Flows for One-Fifth of Livestock Farmers

The Creighton University Rural Mainstreet Index remained weak with a reading again below growth neutral for the 15th straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The index, which ranges between 0 and 100 rose to 36.6 from October’s 31.8. Farm commodity prices continue to slam Rural Mainstreet economies. Over the past 12 months, livestock commodity prices have tumbled by 27.2 percent and grain commodity prices have slumped by 16.6 percent. The economic fallout from this price weakness continues to push growth into negative territory for seven of 10 states in the region. On average, bankers expect one of five livestock producers, or 20.7 percent, to experience 2016 cash ex-penses greater than cash revenues. This is approximately the share of grain farmers with expected negative cash flows for the year.