Creighton University’s Rural Mainstreet Index for Iowa and nine other states is in negative territory for the fifth time in the past six months.
Creighton economist Ernie Goss said the rural bank CEOs surveyed cited supply chain disruptions due to the war in Iran. “Pushing up diesel prices, for example, of course and also fertilizer, two really prime inputs for the agricultural economy,” Goss said. “And that’s really having some significant and negative impacts.”
Goss said the retaliation from trading partners due to U.S. tariffs is another blow. “For example, we’re still 60% down in our exports to China of livestock and agricultural goods,” Goss said.
The survey indicates farm equipment sales remain sluggish and 28% of the rural bankers surveyed indicated local dealers are the businesses bearing the greatest financial stress in rural areas. “Farmers are relying on used equipment, repairing the old equipment and not buying new equipment,” Goss said. “And, of course, that spills over into the broader economy of Iowa where you’ve got a large sector of manufacturing those goods as well.”
Over half of the bankers surveyed supported the diesel relief fund the Trump Administration announced this week. “The question becomes where does the president find $8 billion when you have a $40 trillion debt and a $2 trillion deficit?” Goss asked rhetorically.
Iowa’s overall Rural Mainstreet Index rose three points in October and was the third highest in the 10-state region, but still below what Goss calls growth neutral. Missouri had the region’s lowest score.
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