The latest Rural Mainstreet Index has dropped below the growth neutral point for the tenth consecutive month, indicating a slowdown in the rural economy. According to economist Ernie Goss from Creighton University, this slowdown can be attributed to the agricultural and energy sectors. He pointed to recent layoff announcements by John Deere as evidence of the economic slowdown.
The Rural Mainstreet Index is a monthly survey of agricultural bankers in 10 states, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota. Goss mentioned that uncertainty surrounding the 2024 Presidential Election is also impacting the rural economy. The discussion around trade restrictions and tariffs by the presidential candidates has made those in the agricultural sector nervous.
Additionally, the index revealed that regional agricultural exports were down by 4.1% compared to the same period in 2023. This decline in exports is contributing to the overall slowdown in the rural economy. Goss highlighted these factors in a recent interview with Brownfield, emphasizing the challenges facing the rural economy in the current economic climate.