MITCHELL S.D. (MITCHELLNOW) The Rural Mainstreet Index, an economics survey of small community bankers across a ten-state region, has found that the ag economy is weakening. For the first time in nearly four and a half years, regional farm prices dropped last month.
The strong dollar makes US exports more expensive vis-a-vis foreign agricultural products which is hurting US exports of ag products. High interest rates are also raising input costs for farmers and ranchers.
Cash rents have also trended lower, which is another indicator that the farm economy is facing difficulties.