The Rural Mainstreet Index Creighton University calculates after surveying rural bankers in Iowa and nine other Midwest states has dropped for the fourth time in the past six months. Iowa’s index was in negative territory in August and it has dropped another point-and-a-half this month.
“We asked the bankers about the number one cost factor facing the farmers out there and they said: ‘The two Fs — fuel and fertilizer, up significantly,” said Creighton University economist Ernie Goss, “so that’s causing some real uncertainty and not good for the farmer and not good for the rural communities.”
Goss said rising corn and soybean prices are a bright spot in the rural economy. “Look at the corn prices, probably up about a buck from this time last year — over a buck,” Goss said. “Soybean prices now, those are looking better. China’s returned to buying soybeans from Iowa. That’s darned good (but) still not where we want to be.”
But Goss said operating costs for farmers are rising faster than grain prices, “and of course what’s driving it is the uncertainty driving the global economy.”
Creighton’s Rural Mainstreet Index report for September notes exports of all Iowa farm commodies are up 9.1% compared to a year ago. “We’re still down from 2024, but we are moving back in a positive direction,” Goss said. “It doesn’t help the problems we’re having with Canada or they’re having with us, whichever way you want to say it.”
The report’s year-to-year comparisons show home sales are down in the 10 state region and nearly 80% of the rural bank executives surveyed said trade and tariffs are having a negative impact on their ag customers.
