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
USDA Chief Economist Justin Benavidez says the cattle industry may be nearing a turning point that could gradually reshape supply, prices, and profitability in the years ahead.
Purdue University’s Dr. Michael Langemeier joins us to break down the latest read on farmer sentiment in the April Ag Economy Barometer, and growing concerns about the impact of global conflict on farm inputs and income.
Federal officials are signaling a more aggressive push on beef packer concentration, but any direct market impact will depend on what the investigation actually finds.
The USDA’s annual report leaves dairy producers with a mixed picture. Output and herd size expanded, but weaker prices kept income from rising with production.
Higher freight rates and potential service disruptions are key concerns for agriculture, which relies heavily on rail to move commodities.
DOJ and USDA investigate beef industry concentration, with Big Four packers under scrutiny and a major settlement announcement expected later this week.
