Iowa’s Rural Mainstreet Index remained below growth neutral in March, dropping to 39.7 from 46.5 the previous month.

The state’s farm and ranchland price index for February rose to 51.0 from 44.4, and its new hiring index improved to 48.7 from 47.9. 

For the 13th time since January 2025, the 10-state region’s overall Rural Mainstreet Index reading was below growth neutral, dropping to 40.9 from 47.9 in February. The index ranges from 0 to 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 business community,” Ernie Goss, Creighton University’s chair in regional economics, said in a prepared statement. “Approximately 27.2% of bankers reported that small businesses in their area were experiencing declines in business activity.”

Iowa exports of agricultural goods and livestock in January 2026 increased 108.4% compared with January 2025, according to trade data from the International Trade Association. Compared with January 2024, Iowa exports of agriculture and livestock for the first month of 2026 climbed by 44.3%.

After falling below growth neutral for January and February, the region’s farm and ranchland index rose to 50.2 in March from 45.5 in February. “Farm and ranchland prices have been holding up much better than farm income,” Goss said.

The farm equipment sales index improved to 28.6 from 16.7 in February. “This is the 31st straight month that the index has fallen below growth neutral,” Goss said. “The 2026 conflict in Iran has created even more volatility in the agricultural sector, primarily impacting agricultural equipment sales by tightening farmer operating margins, increasing input costs and shifting farmer planting decisions.”

Other regional findings from the report include:

• The loan volume index increased to 78.6 from February’s 54.3; the checking deposit index improved to 64.3 from 60.9; and the index for certificates of deposits rose to 52.4 from 50.0.
• The new hiring index for March improved to 49.9. “In March, 27.3% of bankers reported small businesses in their area were contracting, with 68.2% remaining stable and only 4.5% indicating small business expansion,” Goss said.   
• Rural bankers remain pessimistic about economic growth for their area over the next six months, with the March confidence index falling to 29.5 from 45.8 in February. “In spite of $12 billion of federal farm support, weak grain prices, higher input prices and expected negative farm cash flows continued to weigh on banker confidence,” Goss said. 
• The home sales index advanced to 54.5 from 43.2 in February.
• Regional retail sales improved slightly to 43.2 from 42.1.