Iowa’s rural mainstreet index jumped to 45.5 in December from 32.4 in November, according to Creighton University’s Rural Mainstreet Index, which was released last month.

The state’s farmland price index also increased, climbing to 64.0 from 62.0 in November.  According to the International Trade Administration, the export of agricultural products from Iowa declined from $1.8 billion for the first 10 months of 2022 to $1.3 billion for the same period in 2023 for a 29.3% slump.

“Almost all farmers have lost working capital with little to no gain in net worth,” James Brown, CEO of Hardin County Savings Bank in Eldora, said in a prepared statement. “Lower crop yields and prices are the major cause, along with our few customers who have cattle and/or hogs.”

The 10-state region’s overall reading for December rose to 41.7 from 40.4 in November. The index ranges from 0 to 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates and a credit squeeze are having a significant and negative impact on rural mainstreet businesses,” Ernie Goss, Creighton University’s chair in regional economics, said in a prepared statement. “Approximately 13.3% of bank CEOs indicated that their local economy was already in a recession, while another 43.3% expect a recession in early 2024.”

In other regional findings from the report:

• The farmland price index increased to 67.2 from November’s 66.7.
• The farm equipment sales index remained unchanged from 49.5 in November.
• The loan volume index soared to 80.9 from 57.9 in November; the checking deposit index dropped to 41.4 from November’s 56.0; and the index for certificates of deposits and other savings instruments rose to 65.5 from 58.0 in November.
• The new hiring index dipped to 49.0 from 49.1 in November. “Only 3.6% of bank CEOs reported an increase in employment in their area, while 14.1% indicated a pullback in hiring for the month,” Goss said.
• The home sales index increased to 43.3 from 32.0 in November. “High mortgage rates and limited supplies are sinking the home sales index below growth neutral in rural areas,” Goss said.
• The retail sales index for December increased to 46.6 from 44.2 in November.