A recent survey of Midwest bankers shows a significant increase in farm loan rejections. Creighton University professor Ernie Goss surveys the presidents and Ceos of rural banks in Midwest states. He found nearly 43 percent of initial farm loan applications had been rejected as bankers react to weak farm income. The financial pinch will be compounded this fall according to Goss who expects the Federal Reserve to raise interest rates.

Goss says the overall Midwest economy is growing but concerns about trade skirmishes are slowing that growth. Goss predicts farm equipment sales may soon take a hit.

Prices remain below break even for a large share of grain farmers and Goss’s survey indicates there’s been a slight slump in checking account deposits in rural banks. Two thirds of the bankers he surveyed indicated their bank has increased collateral requirements on farm loans.