Iowa's Rural Mainstreet Index Drops Again Amid Fuel and Fertilizer Cost Concerns

The Rural Mainstreet Index in Iowa has dropped for the fourth time in six months. The index, calculated by Creighton University after surveying rural bankers in Iowa and nine other Midwest states, is now in negative territory.

Iowa's September index was down a point-and-a-half from August. According to Creighton economist Ernie Goss, rising fuel and fertilizer costs are the main concerns for farmers in the region.

Goss noted that while corn prices have increased by over a dollar since last year, soybean prices have also improved due to China's return to buying soybeans from Iowa.

Exports of all Iowa farm commodities are up 9.1% compared to last year, but home sales in the region are down, and nearly 80% of rural bank executives surveyed said trade and tariffs are having a negative impact on their ag customers.