MITCHELL, SD (Mitchell Now) — The regional farm economy showed modest signs of improvement last month, but overall conditions remain weak, according to the latest Rural Mainstreet Index from Creighton University.
The monthly index is based on a survey of community bankers across a 10-state region stretching from Minnesota and the Dakotas south to Arkansas and Oklahoma. Economist Dr. Ernie Goss, who compiles the report, said low grain prices continue to weigh heavily on producers.
“Prices, agricultural commodity prices, hovering at low levels and at the same time cost increasing,” Goss said. “And of course, that’s putting a pinch on the farm income.”
Nearly one-third of surveyed bankers reported their local economies were currently in recession.
South Dakota’s numbers showed some improvement within the broader regional downturn. The state saw exports rise more than 10 percent compared to last year, providing a rare bright spot in an otherwise challenging economic landscape for farmers and rural communities.
The Rural Mainstreet Index tracks farmland prices, hiring, retail sales, and other indicators tied to agricultural and small-town economic health.