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
Removing the 40% duty sharply lowers U.S. beef import costs on beef, coffee, fertilizer and fruit, and restores Brazil’s competitiveness during a period of tight domestic supply.
Row crop losses in 2025 are outpacing last year. With no disaster aid yet approved, many operations face a tough financial bridge to 2026 even as Farm Bill improvements remain a year away.
Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Jerry Cosgrove with American Farmland Trust explains why farmers and ranchers should start their estate planning now.
Elizabeth Strom of the American Society of Farm Managers & Rural Appraisers joined RFD-TV to provide the latest perspective on post-harvest business planning and cropland markets in the Midwest.
Dalton Henry, with U.S. Wheat Associates, joined RFD-TV to provide insight on what the pending trade frameworks may mean for American wheat growers.

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:

Retail competition and improved supplies are helping offset food inflation, pushing Thanksgiving meal costs modestly lower despite higher prices for beef, eggs, and dairy.
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
The ACRE Act modestly reduces farmland borrowing costs now, with more savings possible once federal guidance clarifies which loans qualify.
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.
USDA’s steady yields and heavy global stocks keep grains range-bound unless demand firms or South American weather becomes a real threat.