Iowa’s rural economy grew at a slightly slower pace in March behind a weaker performance in new job hiring, according to a survey of rural bankers.

According to Creighton University’s Rural Mainstreet Index, the index for Iowa fell to 52 in March, from 62 in February.

The survey is an early snapshot of the economy in 10 rural agriculturally and energy-dependent states, focusing on about 200 communities with an average population of 1,300. The index ranges from zero to 100, with a score of 50 representing neutral growth.

One component of Iowa’s score, the new hiring index, declined to 59.6, from 62.7 in February. The report, released March 17, cited U.S. Labor Statistics data that shows Iowa’s rural communities experienced a 1.8% growth in nonfarm employment over the past 12 months, compared with 2.6% for urban areas of Iowa.

The index also shows that Iowa’s farmland price index increased to 80.3 in March, from 79.8 the previous month.

For the 10-state region, the index rose more than 4 points in March to 65.4 behind strengthening commodity prices.

“A 25% gain in farm commodity prices over the past 12 months, near-record-low short-term interest rates and growing agricultural exports have underpinned the Rural Mainstreet Economy,” said Ernie Goss, the Jack A. MacAllister chair in regional economics at Creighton.

According to the survey, about 4 of 10 bankers reported that they forecast an upturn in farm income in 2022. About the same number expect no change in farm income, while 11.5% say they are anticipating a decline in farm income this year.

About 38% of bankers said they expect Russia’s invasion of Ukraine to negatively affect farm income, with a greater impact on livestock producers than on grain producers.

Despite the war in Ukraine, bankers have increased confidence that the rural economy will continue to expand. The survey’s confidence index increased to 54 in March, up from 51.9 last month.

Other highlights from the report include an increase in the index for home sales, which Goss said were supported by higher commodity prices. The retail sales index fell several points but remained in growth territory at 51.9.

“Healthy farm commodity prices and federal stimulus spending continue to have positive impacts on Rural Mainstreet retail sales and home sales,” Goss said.