(Omaha) It’s the R-word for the Midwest rural economy. Recession.
University Economist Ernie Goss says the Midwest region’s Rural Main Street Economic Index fell to 40-point-nine for August, showing negative growth. Farmland prices are falling, and agriculture equipment sales and farm exports are down. One bright spot for rural Iowa is that Iowa remains stronger, holding at 51-point-six. Any number over 50 indicates growth.
Goss says it’s a matter of supply and demand. Farmers are producing high yields but getting less money for their products.
Goss says while shoppers pay high prices at the grocery store, farmers are not even breaking even.
Goss says the agriculture industry is driving the rural recession.
Despite the recession, Goss believes the U.S. farm economy will hold well in the long term.
