Creighton University’s Rural Mainstreet Index for Iowa rose to 53.5 in December from November’s 52.5.

The survey of bank CEOs in the Midwest produces an index in which anything over 50 suggests growth. In Iowa, the farmland price index was up sharply at 52.5, up from November’s 39.7. The state’s new-hiring index for December fell to 48.7 from November’s 57.1. 

Over the past 12 months, rural areas in Iowa have shown a growth rate of 0.2% in jobs, losing ground, while urban areas in the state gained 1.1%.

Over the 10-state region, the index remained above growth-neutral for the fourth straight month and for the 10th time in the past 12 months, though barely. The index fell to 50.2 from 54.2 in November. 

“Federal agriculture crop support payments and somewhat higher grain prices have boosted the Rural Mainstreet Index above growth-neutral for the month,” Creighton economist Ernie Goss said. “Bank CEOs, on average, expect approximately 12.4% of grain farmers to experience financial losses for 2020. However, this is down from last year at this time, when bankers projected 15.3% of grain farmers to experience negative cash flows for 2019.” 

Jeff Bonnett, president of Havana National Bank in Havana, Ill., told Creighton, “If grain prices remain where they are today, we will have a small percentage of our ag borrowers struggle with cash flow.”