Iowa’s rural mainstreet index increased from 40.6 in May to 48.0 in June, remaining below growth neutral for a 10th consecutive month.

The state’s farmland price index declined 50.9 from 52.2 in May, but the new hiring index increased from 47.7 to 49.0.

Exports of agricultural goods and livestock for 2024 year to date were up 20.3% from the same period in 2023, according to trade data from the International Trade Administration.

The 10-state region’s overall reading for June fell to 41.7 from 44.2. The index ranges from 0 to 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates, weak agriculture commodity prices and sinking agriculture equipment sales pushed the overall reading below growth neutral for the 10th straight month,”  Ernie Goss, Creighton University’s chair in regional economics, said in a prepared statement.

The region’s farmland price index slumped below growth neutral for a second straight month after 53 consecutive months above growth neutral, but did improve slightly to 49.9 from 47.9.

The farm equipment sales index dropped to 31.8 from 34.0 in May. “This is the 12th time in the past 13 months that the index has fallen below growth neutral,” Goss said. “Higher borrowing costs, tighter credit conditions and weak grain prices are having a negative impact on the purchases of farm equipment.”

Other regional findings from the report include:

• The loan volume index declined to 79.2 from 82.0 in May; the checking deposit index sank to 34.8 from 44.0; and the index for certificates of deposits and other savings instruments increased to 63.0 from 62.0.
• The new hiring index for June decreased to 47.7 from 50.0, marking the lowest reading for the hiring gauge since January 2021. “Only 4.5% of bankers reported an increase in hiring from the previous month,” Goss said. “This is down from 7.7% in May and 13.6% in April.”
• The home sales index increased to 62.5 from 46.0 in May.
• The retail sales index dropped from 46.1 to 41.3. “High consumer debt, elevated interest rates and weaker farm income are cutting into retail sales for the rural mainstreet economy,” Goss said.