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
Price volatility is driving shifts in demand and supply innovation.
Brandy Carroll with the Arkansas Farm Bureau shares an update on planting conditions and what producers are facing this season.
Rising diesel and energy costs are squeezing farmers and rural communities, increasing production expenses and raising concerns about consumer demand for beef even as U.S. meat exports regain the Australian market.
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.
Fertilizer relief may be limited despite the reopening of the Strait of Hormuz this week. AgriSompo’s Brooks York discusses marketing strategies, crop insurance considerations, and other tips for producers navigating volatility this planting season.
Reduced driver supply may increase freight costs this season.

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:

The Supreme Court’s ruling could affect pesticide warning claims well beyond Roundup. Richard Gupton with the Ag Retailers Association joins us to explain the importance of federal pesticide labeling standards and discuss the potential impact on the ag industry and supply chain.
Rural population growth supports long-term stability of the ag workforce.
Bridge payments are helping, but many producers still face losses and tight margins. AEM’s Curt Blades joins us to discuss how the current farm economy is pressuring equipment demand.
Rising ethanol stocks and softer gasoline demand bear watching, but stronger blending activity and exports offered some support.
Corn export demand remains supportive, but weak pork and rice sales show uneven global demand trends.
Rising poultry supply is pressuring prices despite steady demand.