The Midwest rural economy improved this month, according to Creighton University’s monthly survey of bank CEOs. .Creighton’s Rural Mainstreet Index increased six points to 50.1 in December, just over the growth-neutral score of 50. The index has been above growth-neutral only twice this year, according to the report. Despite the improvement, lackluster commodity prices and higher-than-average input costs continue to weigh on farm-dependent economies, said Ernie Goss, regional economist at Creighton University. Bankers cited trade policy as a key factor restraining growth, with about half identifying reduced tariffs and trade restrictions as the most effective way to boost farm income.The index tracking farmland values stabilized, with the related price index increasing to 52.5, its highest level since April 2024. Bankers reported farm loan delinquencies increased modestly over the past six months, though roughly one-third of banks have tightened credit standards due to prolonged weakness in the farm economy.Agricultural exports declined 3.6 percent during the first nine months of 2025 compared with the same period a year earlier, according to federal trade data. Exports to Mexico increased slightly, while shipments to China dropped sharply.Farm equipment sales remained low, with the sales index holding near historic lows for the 28th straight month. Lower interest rates have yet to spark significant purchasing activity.Banking indicators improved in December, with stronger loan demand and deposit growth, though hiring slowed and bankers remained pessimistic. The confidence index, while eight points higher than November, remained well below growth neutral at 40.9 amid concerns over grain prices, farm cash flows and ongoing trade tensions.Housing activity stayed weak, dropping one point to 42.9, while retail sales rebounded into expansion territory, increasing 13 points to 54.8. Bankers noted that higher insurance costs, property taxes and borrowing rates continue to pressure both farmers and rural households.The Rural Mainstreet Index surveys bank CEOs across approximately 200 rural communities and provides a monthly snapshot of economic conditions in agriculturally and energy-dependent regions of the country.
