Omaha, Nebraska (RI) — Bankers in Iowa and nine other states who responded to the latest “Rural Mainstreet” survey predict many Midwest grain farmers will have more expenses than profits this year. Creighton University (Omaha) economist Ernie Goss conducts the monthly survey.
The USDA predicts Iowa farmers will harvest the largest ever corn crop this fall, and that bumper crop means lower prices — projected to be around $3.60 per bushel. Goss says there are other troublesome economic signals in the farm economy.
Goss says urban areas are doing much better, but Midwest economies rely heavily on the performance of the ag sector. A weaker U.S. dollar may eventually boost overseas grain sales, according to Goss, and he says there may at least be a short-term break for borrowers if the Federal Reserve cuts interest rates in September.
