In recent months, the Rural Mainstreet Index has seen a slowdown in the rural economy. This marks the tenth consecutive month that the index has fallen below the growth neutral point. According to economist Ernie Goss from Creighton University, the agricultural and energy sectors are to blame for this decline.
Goss pointed to recent layoff announcements by John Deere as evidence of the economic slowdown in agriculture. However, he also mentioned uncertainty surrounding the 2024 Presidential Election as a contributing factor. The discussion around trade restrictions and tariffs by presidential candidates is making those in the agricultural sector nervous, which is further impacting their businesses.
In addition to these factors, regional agricultural exports were down by 4.1% compared to the same period in 2023. This decline in exports is contributing to the overall slowdown in the rural economy, according to Goss. He emphasized this during a recent interview with Brownfield, highlighting the challenges facing rural economies in today’s economic climate.
Despite these challenges, there are some bright spots for rural economies. According to Goss, there is potential for growth in renewable energy and other industries that are not directly tied to agriculture or oil and gas production. However, farmers and ranchers will need to continue adapting their businesses to remain competitive in this ever-changing economic landscape.
Overall, it seems that while there may be some challenges facing rural economies at present time, there are still opportunities for growth and success if farmers and ranchers can adapt their business strategies accordingly.
