The majority of responses in a survey of bankers from 10 farm states said that the Federal Reserve should reduce or taper its $85 billion per month bond buying program, according to Ernie Goss' Mainstreet Economy Report for September.
A total of 56.1 percent of bankers surveyed before the Fed decision was announced Wednesday, said they believe the Fed should reduce or taper its monthly bond buying. Another 22.8 percent said the Fed should continue the program until the unemployment rate is less than 7 percent, and 15.8 percent said the program should be stopped by the end of the year.
The Federal Reserve announced yesterday that it will not reduce the purchases at this point.
The majority - 56 percent - of bankers also said that between 10 and 32 percent of agricultural land sales in their area over the past year have been made to non-farmer investors. A total of 88.3 percent said that their major competitor in agricultural lending was Farm Credit.
The Rural Mainstreet Index was 55.8, down from July's number of 57.3, but ahead of the number a year ago, 47.1 The index ranges from 0 to 100, with 50 representing growth-neutral conditions.
Goss is the Jack A. MacAllister Chair in Regional Economics at Creighton University. The index covers Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Colorado and Wyoming.