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Regional Economist Points To New Signs Of Downturns In Rural Sector

August 01, 2024 Steve Schwaller

(Undated)– The rural economy is showing further indications of decline. Creighton University Economist Ernie Goss conducts the Rural Mainstreet Index…

“Farmland prices now have begun to at least move sideways to a bit down. We asked the bankers about looking forward in the next 12 months about farmland. They expect it to come down by three to four percentage points.”

Goss says there are also some signs consumers are pulling back…

“Now in that upper income I’d say that’s the top 20 percent. They’re purchasing and their retail sales are remaining fairly solid but it’s that other 80 percent that we’ve got to worry about.”

Goss blames lower commodity prices for the overall decline…

“What we’re seeing of course is that manufacturing sector that’s not doing well. It’s moving sort of sideways to down and the rural, agricultural economy that’s really moving down fairly dramatically because of low commodity prices.”

Manufacturers of ag-related machinery, such as Deere and Company, have announced extensive layoffs in recent weeks as a result of the downturn in the rural economy.

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