North Dakota's Agricultural Economy Shines in Midwest Survey

North Dakota stands out as a strong performer in the Midwest region, according to the latest findings from the ongoing Rural Mainstreet Survey. The survey, which covers 10 states and assesses approximately 200 rural communities, provides real-time analysis of the rural economy. Creighton University's Heider College of Business compiles the index.

The Rural Mainstreet Index (RMI) for North Dakota in June showed a significant improvement, reaching 56.8 compared to May's 54.8. The state's farmland-price index also saw a notable rise, climbing to 57.9 from 54.8 in May. Additionally, North Dakota's new-hiring index increased to 64.3 from 62.5 in the previous month.

On a scale of 0 to 100, with 50 indicating neutral growth, North Dakota's positive RMI reflects a flourishing rural economy. The report highlights that the state recorded $891 million in agriculture and livestock exports in 2022, marking a substantial growth of 10.9% compared to the previous year. Canada emerged as the primary destination, accounting for 51.3% of North Dakota's farm exports.

Bank CEOs in the broader 10-state region identified Federal Reserve rate hikes as the greatest challenge in the coming 12 months, followed by concerns about rising bank regulations. Higher interest rates were reported to have a negative impact on farm equipment purchases, resulting in a decline in sales, which occurred only three times in the past 31 months. However, bankers anticipate that farm loan defaults will rise by less than 1% over the next year.

In terms of regional performance, the 10 states collectively exported $13.3 billion worth of agriculture and livestock in 2022, demonstrating a notable growth of 26.5% from the previous year. Mexico emerged as the dominant destination, accounting for 55.2% of the region's farm exports.

The monthly report surveyed the following states: North Dakota, South Dakota, Minnesota, Wyoming, Colorado, Illinois, Iowa, Kansas, Missouri, and Nebraska. The positive indicators for North Dakota's agricultural economy provide optimism for the region's economic outlook.

 

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