Iowa’s Rural Mainstreet Index remained below growth neutral for a fifth consecutive month, sinking to 44.3 in January from December’s 45.5.

The state’s farmland price index also declined, dropping from 64.0 to 61.4. According to U.S. Bureau of Labor Statistics data, over the past 12 months, “the state’s rural mainstreet economy expanded employment by 1.1%, while the state’s urban areas grew employment by 0.3%.”

The 10-state region’s overall reading rose to 48.1 in January from 41.7 in December, marking the fifth straight month that the overall rural mainstreet index has stayed below growth neutral. The index ranges from 0 to 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates, weaker agriculture commodity prices and a credit squeeze are having a significant and negative impact on rural mainstreet businesses and on rural mainstreet farmers,” Ernie Goss, Creighton University’s chair in regional economics, said in a prepared statement. “Jim Eckert, CEO of Anchor State Bank in Anchor, Ill., indicated that unless crop prices improve, 2024 will not be a good year for area farmers.”

In other regional findings from the report:

• The farmland price index dropped to 64.0 from 67.2 in December. The index has remained above growth neutral every month since November 2019. “Creighton’s survey continues to point to solid but slowing growth in farmland prices,” Goss said in the news release. “Approximately 28.0% of bankers reported that farmland prices expanded from December levels.”
• The farm equipment sales index sank to 47.9 from last month’s 49.5.
• The loan volume index declined to 71.9 from 80.9; the checking deposit index jumped to 62.0 from December’s 41.4; and the index for certificates of deposits and other savings instruments slipped to 62.0 from 65.5.
• The new hiring index increased to 50.0 from 49.0 in December. “Almost 100% of bankers reported no change in hiring from December’s hiring activity,” Goss said.
• The home sales index dropped to 38.0 from 43.3.
• The retail sales index for January also declined, falling to 46.0 from 46.6.