Rural economy 'near growth'

The rural Midwest's economy is close to growing, according to a survey of bankers earlier this month.

The Rural MainStreet index, based on the survey, was 47.4 on a scale of zero to 100, the highest level in nearly two years. An index above 50 would indicate economic growth.

March was the sixth month out of the last seven that the index has increased, and it's more than double the 18.7 figure from the March 2009 survey, said Creighton University economist Ernie Goss.

The index was 36.6 in February and has been below 50 for 25 consecutive months.

"We can safely say that the negatives are getting decisively less negative as the farming and ranching economies improve," Goss said. "Even so, economic conditions are weaker in the rural areas than in the urban areas of the region as the softer 2009 farm economy continues to work through rural main street businesses in the region."

The bankers reported growth in farm and ranch land values and said loan volume was up, but the index for farm equipment sales slipped.

The biggest economic challenges, the bankers said, were in ethanol production and the availability of venture capital.

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