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According to the April survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the overall Rural Mainstreet Index (RMI) dropped below growth neutral for the third consecutive month.

Overall: The region’s overall reading for April improved to a weak 47.9 from March’s 40.9. This marks the 14^th time since January 2025 that the index has moved below the growth neutral threshold. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“Weakness in farm commodity prices and elevated agriculture input costs are spilling over into the   rural business community. Approximately, 54.2% of bankers reported that their local economy was in a recession,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Farm equipment sales: The April farm equipment sales index slumped to a very weak 26.1, down from 28.6 in March. This is the 32^nd straight month that the index has fallen below growth neutral.

“The 2026 conflict in Iran has created even more volatility in the agricultural sector, impacting agricultural equipment sales by tightening farmer operating margins via increasing input costs and shifting farmer planting decisions,” said Goss.

Farming and ranchland prices: For the third time in 2026, the region’s farm and ranchland price index sank below growth neutral to 48.0 from 50.2 in March. “Though farm and ranchland values have been holding up much better than farm income, weak farm income, lower farm liquidity and tougher credit standards have pushed farmland values lower,” said Goss.

Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. Even so, the April confidence index rose to a weak 39.1 from 29.5 in March. “In spite of $12 billion of federal farm support, weak grain prices, higher input prices and expected negative farm cash flows continued to weigh on banker confidence,” said Goss.

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