OMAHA, Neb. (RFD NEWS) — The rural economy remains under pressure, according to the latest survey from Creighton University, with new data showing continued weakness across farm country. The March Rural Main Street Index dropped to 40.9, well below the growth-neutral level of 50, marking one of the weakest readings since late 2025.
The report highlights several key pressures weighing on producers, including high input costs, low commodity prices, and continued volatility tied to global events.
The ongoing conflict in Iran is also adding uncertainty, particularly in equipment markets. Creighton’s survey shows farm equipment sales have now remained below growth-neutral levels for 31 straight months.
Farm income continues to lag behind other indicators. While farmland values showed some improvement in March, economists note they are holding up better than overall profitability.
Despite the downturn, bankers report that loan delinquencies have remained relatively stable, though concerns are growing about long-term financial stress in the sector.
Confidence in the rural economy also remains low. The survey’s confidence index fell sharply, reflecting ongoing concerns about weak grain prices, rising costs, and the potential for negative cash flow across farm operations.
The Rural Mainstreet Index surveys bank CEOs in a 10-state region heavily dependent on agriculture and energy, offering an early snapshot of economic conditions in rural America.
Economists say the data underscores what many producers are already feeling on the ground: a prolonged period of tight margins and economic uncertainty, with ripple effects extending beyond the farm gate into rural communities.
Dr. Ernie Goss, an economist at Creighton University, joined us on Monday’s Market Day Report to discuss the RMI, highlighting how ongoing challenges in agriculture are spilling over into small-town economies.
In his interview with RFD News, Dr. Goss discussed what led to the latest decline in the index, whether the reading came as a surprise, and shared his outlook for the ag economy moving forward and the indicators he is watching most closely.
“Weakness in farm commodity prices and elevated agriculture input costs are spilling over into the business community,” said Goss. “Approximately 27.2% of bankers reported that small businesses in their area were experiencing declines in business activity.”
Goss also addressed what bank CEOs expect regarding farmers’ cash flow and overall economic growth in rural areas, explained how current conditions are reflected in farm equipment sales, and highlighted key developments in ag trade.
