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August RMI: Rural economy continues to weaken

The latest Rural Mainstreet Index says the ag economy weakened during August.

Creighton University economist Ernie Goss says many farmers are having a difficult time managing high input costs.

“Agriculture commodity prices are still too low to break even for a lot of farmers,” he said. “In fact, bank CEOs expect about one-fifth of the grain farmers to have a negative cash flow.”

The RMI is a monthly survey of ag bankers in 10 states including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota.

He tells Brownfield the livestock industry has been a bright spot.

“Livestock prices are pretty darn good, in fact, really good on the beef side,” Goss said. “But even there you have some supply issues. Not all farmers have sufficient supplies of cattle to offset their losses on the grain side.”

Goss says the regional economic index slumped below growth neutral for the sixth time in 2025.