Editor's note: Creighton University's Ernie Goss and his Rural Mainstreet Index have been warning of collapse for months.
September 2025 Survey Results at-a-Glance:
• For the seventh time in 2025, the overall regional economic index sank below growth neutral.
• For the 16th time in the past 17 months, farmland prices sank below growth neutral.
• Approximately, three of four bank CEOs reported that tariff increases have had a negative impact on farm operations.
• Farm equipment sales dropped below growth neutral for the 25th straight month.
• Almost three of four bank CEOs indicated that falling agriculture commodity prices represented the greatest threat to banking operations over the next 12 months.
• According to the USDA data, the 10-state region produced 36.9% of U.S. 2024 agriculture output.
South Dakota
The September RMI for South Dakota dropped to 44.4 from 52.6 in August. The state’s farmland price index fell to 46.1 from 51.8 in August. South Dakota’s September new hiring index declined to 52.9 from August’s 62.4. According to USDA 2024 data, South Dakota produced $13.1 billion of farm commodities, accounting for 2.6% of the U.S. total. The top two commodities and their U.S. shares were corn at 3.5% and soybeans at 5.3%.
Image Pew Research Center.
"The Rural Mainstreet Index fell again in October, marking the eighth time this year it has dropped below the growth-neutral level of 50. The index came in at 34.6, down from 38.5 in September, the weakest reading since May 2020. Creighton University economist Ernie Goss says lower commodity prices continue to pressure the rural economy. Farmland values also remain soft, staying below growth-neutral for the 17th time in 18 months. Farm loan delinquencies rose to 1.6 percent, while farm equipment sales showed only slight improvement, extending 26 months of weakness."
ReplyDelete"Goss added the rural bankers surveyed expect farmland prices to decline by three to four percent in the next 12 months."
ReplyDelete