The farm economy remained weak this month amid low commodity prices and falling exports, according to the Creighton University Rural Mainstreet Index. .The monthly index dropped to 48.1 in August from 50.6 in July. Any reading above 50 indicates bank CEOs see growth in the local economy. The index tracking confidence among rural bankers dropped to 27.8 from 36.0 in July. “Weak grain prices and negative farm cash flows, combined with tariff retaliation concerns, pushed banker confidence lower,” said Ernie Goss, chair in regional economics at Creighton University’s Heider College of Business.The farm equipment sales index slumped to a weak 14.6, marking its 24th consecutive month of being below growth neutral. Farmland prices fell below growth-neutral for the 15th time in the past 16 months. Exports also weakened: Agriculture goods and livestock sales dropped 12.7 percent in the first half of 2025 compared to the same period in 2024, according to trade data. Mexico remained the region’s top export destination.The farmland prices index also fell, dropping to 46.2 in August — the 15th time in the past 16 months the measure has landed below growth neutral. The relatively low reading was attributed to higher interest rates, increased input costs and tariff-related volatility.Bankers reported minimal change in farm loan delinquencies or bankruptcies, which rose only 1.2 percent over the past six months. Loan volumes fell but remained strong, while savings and certificates of deposit indexes stayed above growth neutral. Hiring increased modestly, with the index rising to 56.0 in August.August’s loan volume index decreased to 82.7 from last month’s record 87.5, while the checking deposit index increased to 63.5 from 45.8 in July. The certificates of deposits and savings instruments index increased to 59.6 from 56.3 in July. This month’s new hiring index increased six points to 56.0. “Job gains for non-farm employers have been positive, but soft for the last several months,” according to the report.
