The January 2025 Rural Mainstreet Index fell below growth neutral for the 16th time in the past 17 months. For the eighth time in the past nine months, farmland prices took a tumble. On average, bank CEOs who responded to the monthly survey expect annual cash rents of $278 per acre of non-irrigated, non-pasture farmland. Farm equipment sales also dropped, making it 18 months in a row.
Also on the survey, bankers expect one in five grain farmers to experience a negative cash flow for 2025. Approximately one-third of bank CEOs recommend that the Federal Reserve leave short-term interest rates unchanged in 2025. Data from the International Trade Association says regional exports of agriculture goods and livestock for the first 11 months of 2024 rose by $673.4 million to $11.6 billion from the same period in 2023 for a 6.2 percent gain. Mexico was the top destination for 2024 ag exports.
(From the National Association of Farm Broadcasters)