Rural Mainstreet Index Pt 1
From the Ag Information Network, I’m Bob Larson. The Rural Mainstreet Index for August dipped lower for the fifth-straight month, but the August index also broached a couple of FIRST-TIME topics with ag bankers.
Creighton University economics professor, Dr. Ernie Goss says Chinese ownership of American farmland AND food processing plants is becoming a big concern …
GOSS … “We asked if there was a concern about the Chinese purchases of not just farmland but also food processing facilities. And they have been buyers of food processing in the U.S., they have been buyers of farmland, and nine out of ten reported concerns about it. Now, of those, a good one-fifth of the entire survey reported significant concerns about the Chinese purchase of farmland and food processing.”
The recently signed Inflation Reduction Act is another concern with some saying they’re worried it may have the reverse effect …
GOSS … “More than half said they expect it to increase inflation and add to the deficit, two things that it was supposed to address. And what the bankers see out there is, like most government programs, federal programs, that is, you get to spend increase, but the tax increases don't become effective or they're not effective.
Dr. Goss says despite looming challenges, ag bankers say they expect farmer default rates on loans will stay low.
Tune in tomorrow for more.
