Although the farm income in the rural Midwest is projected to be lower this year, overall the Midwest economy is looking up.
The Omaha World Herald reports the rural Midwest economy is growing “at a healthy pace.” On the bankers’ economic outlook index for Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming, the region scored 57.3 out of 100, with numbers over 50 signaling growth. This is nearly a 10-point increase over last year.
Although the increased moisture this year is helping crop production in some of the states, the lower prices for commodities have resulted in lower projections for farm income, choking the increase in land prices.
The Midwest’s economic increase, in part, is thanks to energy production. Wind generators across Nebraska and Iowa compensate for the region’s lack of oil and coal supplies.