Rural Mainstreet Index Falls as Farm Costs Climb
Rachel Tsukamoto graduated from the University of North Dakota with a degree in Business Administration and has spent five years reporting on local businesses in the area. She has previously written for the Grand Forks Herald, where she developed a keen insight into local economic trends.
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(NAFB.com) Economic conditions across the rural Midwest weakened in October, with the Rural Mainstreet Index falling to 42.5, its lowest reading since July. Any reading below 50 indicates economic contraction. The monthly survey of rural bank CEOs across 10 agriculture- and energy-dependent states showed the index declining from 44.7 in September. Creighton University economist Ernie Goss says supply chain disruptions tied to the Iran conflict have driven diesel and fertilizer prices to record highs, weighing on the rural economy. Nearly half of surveyed bankers supported federal farm assistance, including the recently announced $8 billion aid program. Farm and ranchland values offered a brighter spot, with that index edging up to 50.3, signaling modest growth. However, farm equipment sales remained weak. The equipment index rose to 36.8 but has stayed below growth-neutral for 38 consecutive months. Regional agricultural exports increased 3.6 percent from a year ago, reaching $7.6 bi