Creighton University's Ernie Goss follows the economies of several breadbasket states. He says Mexico remains the top destination for agricultural exports although Colorado is less dependent on that nation according to August numbers but South Dakota sends 77.3% of its ag product exports to America's southern neighbor. Canada is the top destination for Wyoming's exported agricultural goods and livestock.
Rural Mainstreet Economy Falls in Negative Territory
One-Fifth of Grain Farmers to Experience Negative Cash Flow
August 2025 Survey Results at-a-Glance:
• For the sixth time in 2025, the overall regional economic index sank below growth neutral.
• For the 15th time in the past 16 months, farmland prices sank below growth neutral.
• Approximately six of ten bank CEOs support a Federal Reserve rate cut at their September meeting. Only 3.7% support a rate cut of more than 25 basis points (¼%).
• On average, bank CEOs expect one in five grain farmers to experience negative cash flow for 2025.
• Farm equipment sales dropped below growth neutral for the 24th straight month.Overall: The region’s overall reading for August fell to 48.1 after rising above growth neutral to 50.6 in July and 51.9 in June. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. The August confidence index weakened to 27.8 from 36.0 in July. “Weak grain prices and negative farm cash flows, combined with tariff retaliation concerns, pushed banker confidence lower,” said Goss.
Learn more about red state failure at South Dakota Searchlight.
1 comment:
"Nearly a third of small community bankers in the region say their local economy is in recession.
That’s the outcome of low grain prices for farmers.
Creighton University Economist, Dr. Ernie Goss says grain farmers are tallying up their losses, rather than profits, this year."
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