(Omaha) For the 17th time in the last 18 months, the overall Rural Mainstreet Index (RMI) dropped below 50.0 in February, as reported in the monthly survey of bank CEOs across a 10-state region reliant on agriculture and energy.
The index fell to a concerning 38.0 in February, down from 42.3 in January. The RMI ranges from 0 to 100, where a score of 50.0 indicates a neutral growth status.
Only 9% of bankers anticipate positive outcomes for Rural Mainstreet resulting from President Trump’s tariff policies.
Jim Eckert, CEO of Anchor State Bank in Anchor, Illinois, commented, “The ‘jury is still out’ on the changes from the Trump administration, but our customers largely support efforts to secure the border and deport illegal aliens, as well as initiatives to eliminate government waste and reduce the size of the federal government.”
Jeffrey Gerhart, Chairman of the Bank of Newman Grove and a former Chairman of the Independent Community Bankers of America, remarked, “We have established strong relationships with Mexico and Canada over the years. Collaborative efforts with these trading partners would be more beneficial than imposing tariffs.”
“The economic outlook for grain farmers looks bleak for 2025. While there has been a recent uptick in grain prices, it’s not sufficient for many to achieve profitability. Conversely, regional livestock producers are experiencing good prices, with only 9.3% of bankers predicting negative cash flow for ranchers in 2025,” stated Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Other comments from bankers in February:
• Jim Eckert, CEO of Anchor State Bank in Anchor, Illinois, said, “Area farmers are somewhat optimistic going into the 2025 crop. Our area is somewhat “dry”, but the situation is not serious yet.”
• According to Jeffrey Gerhart, Chairman of the Bank of Newman Grove and former Chairman of the Independent Community of Bankers, “The fallout from the actual tariffs remains to be played out, but I don’t believe that it will be good for the folks down on the farm.”
