Rural Small Businesses See Modest Optimism Despite Labor Strain

Rural employers are slightly more optimistic, but labor shortages and renewed price pressures continue to limit growth across farm country according to a

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-TV) — Rural and agriculture-adjacent small businesses saw a slight boost in confidence in November as the NFIB Small Business Optimism Index edged up to 99.0. Still, labor shortages and rising costs continue to pressure farm-country employers. The largest driver of the gain was stronger expectations for real sales, even as owners reported more uncertainty about future capital spending.

Labor quality remained the most pressing challenge across rural Main Street. One-third of small firms still cannot fill open positions, and 89 percent of those hiring report that qualified applicants are scarce — a persistent constraint for ag retailers, equipment shops, grain handlers, and service providers that rely heavily on skilled labor. Inflation pressures also resurfaced: 34 percent of owners raised selling prices, the sharpest monthly jump in more than two decades.

Supply chain disruptions intensified for 64 percent of firms, while capital outlays weakened, suggesting producers and rural businesses remain cautious heading into 2026.

Related Stories
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
With core input inflation still hovering high, growers and retailers should plan pricing and promotions with tighter margins in mind — target early sales, leverage bundle deals, and secure logistics ahead of peak Halloween demand.
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
While there has been an increase in outbreaks of Highly Pathogenic Avian Influenza (HPAI) this migration season, the CDC says the public health risk is low.
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
The idea of buying more beef from Argentina does not sit well with much of farm country, raising some questions from analysts and producers.

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:

Industry leaders representing more than 40 nations gathered to discuss the future of ethanol and other corn-based products.
Farmers display a unique optimism — planting with the expectation that weather, basis, and prices will improve by harvest — asserting that the profession is an identity, not just a job.
Imported lean beef continues to play a critical role in U.S. hamburger and ground-beef production, with any added volume from Argentina serving as a supplement — not a market overhaul.
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.
Stay alert for trade announcements—especially border reopening timelines, tariff threats, and developments in Brazil’s export flows.
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.