Rural Mainstreet Economy Edges Back Into Growth, Farm Concerns Persist

The Rural Mainstreet Index edged back above growth-neutral in August, but the latest survey still shows significant financial pressure across farm country.

Creighton University’s index rose to 50.3, up sharply from 42.1 in July. However, nearly half of surveyed bankers expect farm income to decline over the next year, while only about 16 percent expect an increase. Farm and ranchland prices also slipped below growth-neutral, with the index falling to 47.2.

Farm equipment sales remained especially weak, dropping to 22.2 for the 36th consecutive month below 50. Creighton economist Ernie Goss says higher input costs, weak grain prices, and uncertainty surrounding tariffs and the Iran conflict are weighing on producers. Bankers also report signs of stress in cattle country, with drought prompting some ranchers to begin liquidating herds.

Despite weaker cash flows, almost 54 percent of bankers say they haven’t yet tightened credit standards in the last three months.