Rural Mainstreet Economy Remains Weak for June: Bankers Tighten Farm Loans

Survey Results at a Glance: • For a tenth straight month, the Rural Mainstreet Index fell below growth neutral. • Farmland prices remained below growth neutral for the 31st straight month. • Due to the weak agriculture economy, 73.5 percent of bankers increased collateral requirements, half boosted interest rates, and 35.3 percent rejected a higher percentage of farm loans. • Rural Mainstreet businesses boosted hiring for the month. While remaining very fragile, the Rural Mainstreet Index (RMI) has increased four of the last five months. The index, which ranges between 0 and 100, rose to 43.9 from May’s 40.9.