Iowa’s rural economy moved back into contraction territory in February, according to the latest Rural Mainstreet Index survey of bank CEOs in a 10-state region dependent on agriculture and energy.
The overall index fell to 47.9 from 52.0 in January. A reading below 50.0 indicates contraction.
In Iowa, the index dropped to 46.5 from 52.7. The state’s farm and ranchland price index declined to 44.4 from 46.1, and the new hiring index slipped to 47.9 from 49.0.
Ernie Goss, an economist at Creighton University who oversees the survey, says weakness in the farm economy, especially grain, continues to weigh on rural communities. About 75% of bankers support additional congressional aid for agriculture.
Farm equipment sales remain a concern. The regional index fell to 16.7, marking the 30th straight month below growth neutral.
According to International Trade Association data, Iowa agricultural exports rose 32.5%, totaling $1.7 billion for the first 11 months of 2025, compared to $1.3 billion a year earlier.
