In recent months, the Rural Mainstreet Index has shown a consistent decline in growth. This slowdown is mainly attributed to the agricultural and energy sectors, according to economist Ernie Goss from Creighton University. A clear indicator of the economic challenges faced by these industries is the recent layoffs announced by John Deere.
The index is based on a monthly survey of agricultural bankers in states such as Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota. Goss also points out that uncertainty surrounding the 2024 Presidential Election is adding to the issues faced by the rural economy. Discussions of trade restrictions, tariffs, and other policies by the presidential candidates are causing concerns among those in the agricultural sector.
Furthermore, the index has reported a 4.1% decrease in regional agricultural exports compared to the same period in 2023. Overall, it seems that various factors are contributing to this decline in rural economy growth. These include ongoing challenges in the agricultural and energy sectors as well as political uncertainties that are impacting rural economies in surveyed states.
