OMAHA, Neb. – More farm loan applications are being rejected in rural parts of 10 Plains and Western states in reaction to weak farm commodity prices and income.
The latest Rural Mainstreet survey says nearly one-third of bank CEOs reported rejecting a higher percentage of farm loans, while nearly 55 percent indicated their banks had raised collateral requirements in the face of weak farm prices and income.
The region’s economic index rose to 54.8 in August from 53.8 in July. That score still suggests growth because it is above 50, while any score below 50 indicates a shrinking economy.
Creighton University economist Ernie Goss says the recent trade disputes have weakened “already anemic grain prices.”
Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming were surveyed.