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
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.
NCBA CEO Colin Woodall says more conversations need to occur with stakeholders present surrounding President Trump’s proposal to lower consumer beef prices with Argentinian imports.
The new AFBF Women in Agriculture survey is accepting responses from women in the industry across the United States now through March 31.
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
The USDA’s latest Hogs and Pigs Report caught some analysts off guard. Inventories came in lower than expected, signaling tighter supplies ahead, even as producers return to profitability this year.
Southern farms are deepening online engagement for cost savings and market access, while higher-cost precision technologies face renewed scrutiny amid tight budgets.
Slightly higher output amid softer gasoline pull points to steady corn grind — watch regional stocks and export pace for basis clues.
Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.

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 DOJ’s new antitrust probe could reshape beef-packer behavior, with potential impacts on fed-cattle prices, processor margins, and long-term competition across the supply chain.
The Senate has cleared a path to reopen USDA, but full restoration of services depends on House approval and the President’s signature.
Verified U.S. data show real leather’s carbon footprint is lower than advertised — an edge for the American cattle industry in both marketing and byproduct value.
Stagger buys and diversifies fertilizer sources — watch CBAM, India’s tenders, and Brazil’s import pace to time urea, phosphate, and potash purchases.
Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
Distillers dried grains (DDG) values follow corn and soybean meal trends, with ethanol grind and feed demand shaping costs into early 2026.