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Rural Mainstreet Reflects Weak Rural Economy

The Rural Mainstreet Index (RMI), which covers 10 regional states across 200 rural communities, reports that in May, the overall index fell below growth neutral 50.0 for the 20th time in the past 21 months.

• For the 12th time in the past 13 months, farmland prices sank below growth neutral.

• Farm equipment sales dropped below growth neutral for the 21st straight month.

• Federal Reserve interest rate policies have boosted CD purchases above growth neutral for 30 straight months.

• Approximately 68% named lower ag commodity prices as the number one farming threat, while 23.5% indicated higher tariffs as the top risk factor.

• According to trade data from the International Trade Association (ITA), regional exports of agriculture goods and livestock for the first quarter of 2025, compared to the same 2024 period, fell from $3.4 billion in 2024 to $2.7 billion in 2025 for a decline of 19.3%.

• For Q1, 2025, Mexico was the top destination for regional ag exports, accounting for 50.6% of total regional agriculture and livestock exports.

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