Rural Mainstreet Index Drops Again as Fuel and Fertilizer Costs Rise

The Rural Mainstreet Index, calculated by Creighton University after surveying rural bankers in Iowa and nine other Midwest states, has dropped for the fourth time in six months. The index's September reading is lower than August's, with a loss of one-and-a-half points. According to Ernie Goss, the Creighton University economist who compiles the report, rising fuel and fertilizer costs are causing uncertainty among farmers.

Fuel and fertilizer prices have increased significantly, said Goss. However, some positive trends are emerging in the rural economy, including higher corn and soybean prices. Corn prices have risen by over a dollar from last year's levels, while soybean prices are looking better due to China's return to buying Iowa-grown beans.

The Creighton report notes that exports of all Iowa farm commodities are up 9.1% compared to the same time last year. However, home sales in the region are down, and nearly 80% of surveyed rural bank executives say trade and tariffs have a negative impact on their agricultural customers.