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
Strong exports and production support ongoing corn demand.
Strong consumer demand supports livestock market outlook.
Strike risk adds volatility to already tight markets.
Strong corn demand and cotton shipments support export outlook.
Hurd joined this week’s Champions of Rural America to review the proposed Farm Bill moving through the House and discuss its potential impact on rural communities and farmers across the country.
Big oils-and-fats volumes can support crush demand, but fuel markets can quickly tighten supplies.

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. Agriculture Faces Mixed Weather, Market Pressures
Farm legal expert Roger McEowen discusses a new rail antitrust case in Kansas and its potential implications for farmers as rail upgrades signal continued export-driven demand for logistics.
Surging energy markets are quickly becoming a cost story for U.S. agriculture as crude oil climbs on supply fears tied to the Middle East conflict.
Technology-driven lending decisions may shape the future availability of farm credit.
Logistics remain firm, but freight costs continue to rise.
Fertilizer investigation may impact input costs and margins.