Farming in Trouble: Rural Mainstreet Index Shows Decline in Agricultural Sector for 8 Months

The agricultural sector is currently facing tough times, as reflected in the latest Rural Mainstreet Index which has fallen below growth neutral for eight consecutive months, according to the April survey. Despite this, farmers are still able to repay their loans on time, a surprising development noted by Creighton University economist Ernie Goss.

However, farm equipment sales continue to decline, with farmers hesitant to make purchases due to higher interest rates and uncertainty surrounding agricultural commodity prices. The survey also showed that farmland prices have been increasing for the 53rd consecutive month. Goss highlighted the ongoing struggles in the agricultural sector and its impact on rural economies.

The RMI survey is a monthly report of agricultural bankers in 10 states, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota. The findings of this report paint a picture of a challenging environment for farmers and agricultural businesses in these areas.