The May Rural Mainstreet Index fell below the growth-neutral reading of 50.0 for the 19th time in the past 20 months. The ten-state region covered by the Index came in at 44 during May, up from 40 in April. The index ranges between 0 and 100, with 50 representing growth neutral.
“According to the bank CEOs in our survey, the economic outlook for 2025 farm income remains weak,” said Ernie Goss of Creighton University. “Almost one in four bankers rate tariff retaliation from trading partners as the top risk facing farmers this year.”
Sixty-eight percent say lower commodity prices are the major risk for farmers. For the 12th time in 13 months, farmland prices sank below growth neutral. Farm equipment sales also dropped below growth neutral for the 21st straight month. Regarding the tax deliberations in Congress, 54 percent of the rural bank CEOs argue for extending the 2017 tax cuts.