Small Business Optimism Dips; Rural Signals Turn Mixed

Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.

NASHVILLE, Tenn. (RFD-TV) — The September NFIB Small Business Optimism Index slipped to 98.8 after three months of gains, while the Uncertainty Index jumped to 100 — one of the highest readings in decades.

For rural America, where farm supply dealers, repair shops, haulers, and service businesses anchor local economies, softer sentiment and higher uncertainty can translate into tighter margins, cautious hiring, and more selective inventory buying as harvest cash flows move through towns.

Price pressure remains a headwind. A net 24 percent of owners raised prices, and 31 percent plan to do so in the next three months; 14 percent named inflation as their top problem.

Supply chain effects touched 64 percent of firms, up 10 points. Inventory readings swung sharply, with a net negative 7% calling stocks “too low” — the largest monthly decline on record.

Labor stayed tight: 32 percent reported unfilled openings; among those hiring, 88 percent saw few or no qualified applicants. Compensation rose at a net 31 percent of firms, with 19 percent planning increases.

Credit and investment conditions are steady but not strong. A net 7 percent said their last loan was harder to get, and the average short-term rate rose to 8.8 percent. Capital outlays held flat, and sales trends stayed negative on net — signals that rural main streets may lean conservative on equipment, vehicles, and expansion through winter.

Farm-Level Takeaway: Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
Related Stories
National Farmers Union (NFU) President Rob Larew discusses the urgent need for aid as farm families face mounting input costs and long-term market uncertainty.
The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.
Large carryover stocks continue to put pressure on commodity prices, creating uncertainty for growers looking to market their grain.
Support policies that keep U.S. biofuels at the table—marine demand could materially lift corn grind, crush margins, and rural jobs.
China is not one of our top suppliers of cooking oil, according to USDA ERS data, but does export a lot of used cooking oil to the U.S. for biofuel production.
Industry leaders say $11 billion in new investments could turn the tide as dairy producers face shrinking margins and growing uncertainty.
Export Inspections In Bushels Show Mixed Momentum Patterns
U.S. Farmers Face Shifting Harvest Pace, Basis, and Input Costs
Lewis Williamson with HTS Commodities joined RFD-TV’s Market Day Report to share insight into what’s happening on the ground and in the markets.