According to the latest Rural Mainstreet Index, the rural economy is facing a slowdown for the tenth consecutive month. This index is a monthly survey of agricultural bankers in 10 states, including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska and South Dakota. The drop below the growth neutral point indicates that the rural economy is experiencing a decline.
Economist Ernie Goss from Creighton University attributes this slowdown to several factors. One of these factors is the agricultural and energy sectors. He points to recent layoff announcements by John Deere as evidence of this economic slowdown. Another factor that Goss highlights is uncertainty surrounding the 2024 Presidential Election. The discussion around trade restrictions and tariffs by the presidential candidates has made those in the agricultural sector nervous.
Goss also mentioned 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. In a recent interview with Brownfield, Goss emphasized the challenges facing the rural economy in this current economic climate.
Overall, these factors are causing a decline in growth and uncertainty for rural communities across these states.
As we move forward into this new year, it will be important for policymakers and industry leaders to address these challenges head-on if we want to see sustained growth and prosperity for our rural economies.
