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According to the May 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 fourth straight month.

Overall: The region’s overall reading for May dropped to 45.7 from April’s 47.9. This marks the 15^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, 47.8% of bankers reported that the financial position of farmers in their area had deteriorated in 2026 from 2025,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s .

Farm equipment sales: The May farm equipment sales index slumped to a very weak 18.2 from April’s 26.1. This is the 33^rd straight month that the index has fallen below growth neutral.

“The war in Iran has added volatility to an already-pressured agricultural sector, with rising input costs squeezing farmer operating margins, dampening equipment sales and reshaping planting decisions heading into the season.”

Farming and ranchland prices: After three straight months of falling farm and ranchland values, the region’s farm and ranchland price index expanded for May to a tepid 50.1 from 48.0 in April. “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 restrained farmland values,” said Goss.

Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. The May economic confidence index slumped to 34.8 from 39.1 in April. “In spite of the potential for year-round E-15 ethanol sales, weak grain prices, higher input prices and expected negative farm cash flows continue to weigh on banker confidence,” said Goss.

This month, approximately 47.8% of bank CEOs reported that financial conditions for farmers and ranchers had deteriorated in 2026, compared to 2025.

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