Creighton University’s latest survey of rural bankers shows economic conditions weakening in both Minnesota and Iowa.
Minnesota’s Rural Mainstreet Index dropped from 53.6 in August to 45.8 in September. Minnesota’s farmland index edged up 51.3, while it hiring index fell to 50.7. Minnesota agricultural and livestock exports through July were up 31% from a year ago, including an 83% increase to Mexico.
In Iowa, the overall index fell from 46.2 to 44.6. Iowa’s farmland index improved to 50, while its hiring index rose to 49.4. Iowa ag and livestock exports were up 9%, with exports to Japan climbing 25%.
Creighton economist Ernie Goss says higher corn and soybean prices are providing some relief, but rising fuel and fertilizer costs continue to pressure farmers.
Across the ten state region, nearly 80% of bankers surveyed said tariffs are negatively affecting their agricultural customers.
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