Labor Inflation Keeps Pressure on Rural Main Street

For farm country, that caution can mean higher costs, slower service, and less local investment.

clifton-tn-antique-district_By-Austin-via-Adobe-Stock.png

The antique district in Clifton, Tennessee, was accredited by the Tennessee Main Street program in 2021 after their participation in the project. (Photo by Austin via Adobe Stock)

Photo by Austin via Adobe Stock

NASHVILLE, TENN. (RFD NEWS) — Small business optimism remained below average in April, and labor problems continue to weigh heavily on rural employers. The National Federation of Independent Business (NFIB) says its Small Business Optimism Index rose slightly to 95.9, still below its 52-year average of 98.0.

Labor quality ranked as the top concern, cited by 18 percent of small business owners. In rural communities, that problem often comes down to numbers. There are fewer people in the local workforce, which means an even smaller pool of skilled workers for repair shops, feed stores, implement dealers, trucking companies, and service businesses.

Inflation is adding more pressure. NFIB says 30 percent of owners raised average selling prices in April, while 27 percent plan to raise prices over the next three months.

Expansion plans remain weak. Only seven percent of owners said April was a good time to expand, the lowest reading since October 2024. Supply chain disruptions affected 64 percent of businesses to some degree.

For farm country, that caution can mean higher costs, slower service, and less local investment.

Farm-Level Takeaway: Rural labor shortages and inflation can reach the farm in the form of higher prices, longer wait times, and tighter service capacity.
Tony St. James, RFD News Markets Specialist
Related Stories
North Dakota Farmers Union (NDFU) President Mark Watne joined us Monday to share his perspective on the America First Trade Promotion Program and potential implications for producers.
Duane Simpson, CEO of the National Council of Farmer Cooperatives (NCFC), joined us in Monday’s Market Day Report to share his perspective on the USDA’s plan and potential impact on producers.
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
Secretary Rollins’ plan targets high costs, labor challenges, and export growth, delivering relief at home while building markets abroad.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

U.S. Farmers Face Shifting Harvest Pace, Basis, and Input Costs
Lewis Williamson with HTS Commodities joined RFD-TV’s Market Day Report to share insight into what’s happening on the ground and in the markets.
Expect choppier basis and wider bids — hedge earlier, keep logistics flexible, and watch Argentina and India headlines for near-term opportunities.
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
Treat storage as risk management and logistics, and budget to break even since export growth is unlikely to absorb bigger U.S. corn and soybean crops.
For rural borrowers, freeing up community-bank balance sheets could mean steadier home loans, operating lines, and ag real-estate financing as winter planning ramps up.