MITCHELL, SD (Mitchell Now) — Nearly a third of small community bankers across the region say their local economy has slipped into recession, citing prolonged low grain prices and rising input costs that continue to erode farm income.
Creighton University economist Dr. Ernie Goss said many grain farmers are tallying losses rather than profits this year. He noted that while commodities remain weak, production expenses continue to rise, creating deeper financial pressure for producers.
Goss said the combination of “agricultural commodity prices hovering at low levels” and increasing costs is pushing more operations into negative cash flow. He added that the estimated number of farmers likely to end the year “under water” has risen sharply.
While grain producers face tightening margins, livestock prices—particularly in the cattle sector—are performing better and providing some offset within the broader agricultural economy.
The report underscores ongoing challenges for rural lending institutions, which remain closely tied to the financial health of farm operations and local ag businesses.