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Tariffs Continue to Weigh on Rural Mainstreet Economy

For the seventh time in 2025, the overall Rural Mainstreet Index (RMI) sank below growth neutral 50.0, according to the monthly survey bank CEOs in rural areas of a 10-state region.

Overall: The region’s overall reading for September fell to 38.5 from 48.1 in August. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“Weak agriculture commodity prices for grain producers continue to dampen economic activity in the 10-state region. Almost three of four bank CEOs and chief loan officers indicated that falling agriculture commodity prices represented the greatest threat to banking operations over the next 12 months,†said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University.

Farm equipment sales: The farm equipment sales index improved slightly to a very weak 15.2 from August’s 14.6. “High input costs, tighter credit conditions, low farm commodity prices and market volatility from tariffs are having negative impacts on the purchases of farm equipment,†said Goss.

Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. “Weak grain prices and negative farm cash flows, combined with tariff retaliation concerns, pushed banker confidence lower,†said Goss.

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