The Creighton University Rural Mainstreet Index for February fell but remained slightly above growth-neutral, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and energy. 

The overall index sank to 50.2 from January’s 51.5. This was the 11th time in the past 12 months the index has remained above growth-neutral. The index ranges between 0 and 100, with 50 representing growth-neutral. 

“Our surveys over the last several months indicate the Rural Mainstreet economy is expanding outside of agriculture,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton’s Heider College of Business.

However, the negative effects of tariffs and low agriculture commodity prices continue to weaken the farm sector. Meanwhile, the February RMI for Iowa sank to 49.3 from January’s 54.2. Iowa’s farmland-price index increased to 41.9 from January’s 37.8. Iowa’s new-hiring index for February expanded to 55.9 from 53.4 in January. Over the past 12 months, Iowa’s Rural Mainstreet economy added jobs at a zero percent pace, while urban areas in the state increased jobs by 1.8 percent. Bank CEOs projected a 6.1 percent decline in farm equipment sales over the next year, compared with a 6.9 percent reduction projected last February.

In addition, they said that weak farm income has pushed almost two-thirds of banks to increase collateral requirements on farm loans, with almost one-third of banks increasing the rate at which they reject farm loans due to anemic farm income.