USDA’s annual Rural America at a Glance Report series usually contains a specific topic of focus, along with traditional offerings about population, income, and economics.
Tracey Farrigan, a research geographer with the Economic Research Service, says for this year’s edition, debt-to-income in rural areas was studied, which she pointed out is another measure associated with buying power, similar to income itself.
She looked at what the rural debt-to-income trend over the two-plus decades indicates.
“Rural areas have consistently had relatively low debt-to-income ratios, as measured by the share of rural counties that have low debt-to-income relative to the share that have high debt-to-income.”
That trend is opposite in urban areas, which is a positive thing for rural America.
“Part of that is that if you have low debt-to-income, it can impact things like access to credit, which can allow households to smooth economic shocks. Credit, not just for the sake of credit, but also to build assets over time and enhance financial standing. And when you look at it as an aggregate measure for the county as a whole, it can suggest similar things for an entire area. For instance, a lower overall debt-to-income ratio may make rural counties more resilient to economic shocks and stresses, such as those brought about by the COVID-19 pandemic.”