The latest Rural Mainstreet Index shows continued economic weakness across agriculture-dependent communities.
According to Creighton University’s monthly survey of rural bank CEOs, the overall index for a 10-state region dropped to 40.9 in March, down from 47.9 in February and well below the growth-neutral mark of 50.
Economist Ernie Goss with Creighton University says weak farm commodity prices and high input costs continue to weigh on rural economies, with more than 27% of bankers reporting declines in small business activity.
In Iowa, the Rural Mainstreet Index fell to 39.7 in March from 46.5 in February, also below growth neutral.
Despite that, Iowa farmland values showed some resilience, with the state’s farm and ranchland price index rising to 51.0. Hiring remained soft, with Iowa’s hiring index at 48.7.
There were some positive signs in trade, as Iowa exports of agricultural goods and livestock jumped more than 108% compared to a year ago and were up more than 44% from 2024 levels.
Bankers remain cautious moving forward, however, as overall confidence in the rural economy dropped sharply in March amid continued pressure on farm incomes.
