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Farming and Rural Indexes Grow

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November 5th, 2012

The Rural Mainstreet Index put out by Creighton University climbed to its highest level since June of this year.  The index had been flat or lower due to the drought during the previous three months, but with the report released last month, it rose to a solid 56.6 from September’s weak 48.3.  It was the first time since June that it rose above the growth neutral 50 level.

The negative impacts of the drought are being more than offset by high crop prices, expected crop insurance proceeds and high energy price returns for landowners.

The farmland price index continues to soar higher.  The October reading was 71.7 which is the 33rd straight month above 50.  Bankers reported about 70% of crop yields lower this year while about 19% are indicated higher.

After expanding for seven straight months, the loan demand index dropped dramatically from September’s 70.2 to 44.2.

The hiring pace still remains very tepid at only 51.5 up from 50.9.  Bankers report uncertainty surrounding healthcare reform, the elections and the fiscal cliff are all restraining employers from much new hiring.

One in four bankers expect a recession in 2013, however, the elections seem to be clouding the outlook.

Paul Neiffer, CPA

Paul Neiffer

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation.

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    Sort of sad all of the orange groves that have been pulled out due to drought 2 days ago

    Traveling north of Bakersfield CA. Orange groves by the dozen 2 days ago

    When "bullish" corn reports lead to flat closes what is Mr. Market telling you. Be careful. 2 weeks ago

    2010 spring corn price was $3.99. Only four years ago. 3 weeks ago

    Two good days to lock in decent prices on corn and beans. Did you take advantage of the opportunity 3 weeks ago

    Very little change on corn intentions in key corn belt state. Almost all reductions in fringe states such as ND down 1 million acre 3 weeks ago

    North Dakota up 1 million Minnesota up 700k and Nebraska up 600k represent almost half of the 5 million increase in bean acres 3 weeks ago

    Just spoke for 45 minutes on new farm bill to a group of 100 Minnesota and Wisconsin Co-op board members. No one fell asleep. 4 weeks ago

    Hard to beat spring time in the Pacific Northwest. 4 weeks ago

    Kansas City can be windy this time of year. Just got done taping with a farm family. Check it out on #agday next Friday 1 month ago