Economic conditions in rural America continued to weaken in October, according to the Creighton University’s Rural Mainstreet Index. .The index, which tracks economic activity in 200 agriculturally- and energy-dependent communities across 10 states, fell to 34.6 — its lowest reading since May 2020 — down from 38.5 in September. Any reading below 50 on the 100-point scale signals economic contraction. The index has been below 50 for most of this year. “Weak commodity prices and economic uncertainty are continuing to dampen activity in rural communities, leaving farmers and local businesses under pressure,” said Ernie Goss, professor of economics at Creighton University Heider College of Business. Agricultural exports to China plummeted 85.7 percent compared with the first seven months of last year, while overall regional ag exports fell 10.3 percent. The index tracking farm equipment sales remained weak, with the index rising only to 18.8, continuing a 26-month streak below 50. “High input costs, tighter credit conditions, low farm commodity prices and market volatility from tariffs are having negative impacts on purchases of farm equipment,” Goss said. Farmers are facing severe pressure, according to the report, with farmland prices dropping to 37.0 from 45.8 in September, its 17th decline in the past 18 months. Farm loan delinquency rates also rose slightly, to 1.6 percent this month from 1.1 percent in June.Despite the impact farmers face from China’s decision to halt buying soybeans from the United States for the 2025-26 crop year amid escalating trade tensions, most bank CEOs supported Trump’s approach to the conflict. Seventy-two percent gauged his approach toward China as “about right,” identical to April. Most — 84.6 percent — also supported Trump’s proposed $10 billion in federal aid to farmers to counteract the impact from tariffs. Still, confidence in the regional economy remains low, with the confidence index steady at 32.7.Other report findings included:Retail and home sales also struggled. The home sales index fell to 40.0 from 48.0, while retail activity remained weak at 36.0. Hiring in nonfarm sectors remained soft, with the new hiring index slipping to 44.0.October’s loan volume index increased to 72.0 from 70.0 in September. The checking and deposit index fell to 52.0 from 54.0, while the index tracking certificates of deposits and other savings instruments fell 10 points to around 50. October’s new hiring index fell four points to 44.0 in October, as job gains for non-farm employers have been weak for the past several months.
