For only the second time in 2025, the overall Rural Mainstreet Index (RMI) climbed above growth neutral 50.0 in December, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The region’s overall reading for increased to 50.1, its highest reading since July 2025 and was up from November’s 44.0. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“Weak agriculture commodity prices and high input costs for grain producers continue to restrain economic activity in the 10-state region,” says Creighton University’s Dr. Ernie Goss, who conducts the survey.
When asked to identify the most effective policy changes to boost farm income, half of the bank CEOs named the reduction of farm tariffs and trade restrictions as the most effective or useful. Fewer than one in five named the passage of a five-year Farm Bill. Almost the same share identified the recent $12 billion farm aid program as a top priority.
Farming and ranchland prices: For only the second time in the past 20 months, farmland prices expanded above growth neutral. The region’s farmland price index improved to 52.5, its highest level since April 2024 and is up from 43.2 in November.
Bankers report farm loan delinquencies expanded by only 1.6% over the past six months. “As the farm economy has weakened significantly over the past two years, farm loan delinquencies have remained virtually flat. Even so, one-third of bankers indicated that their banks had tightened credit standards,” states Goss.
Farm equipment sales: The farm equipment sales index declined slightly to a very weak 15.0 from November’s 15.1. “This is the 28th straight month the index has fallen below growth neutral. Lower interest rates have yet to stimulate farm equipment purchases,” observes Goss.
Banking: The December loan volume index advanced to 71.4 from November’s 64.6. The checking deposit index improved to 69.0 from 58.3 in November. The region’s index for certificates of deposits (CDs) improved to 52.4 from November’s 47.9. The Federal Reserve’s recent interest rate cuts have weakened CD purchases with the index standing at 60.0 three months earlier.
Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. The December confidence index rose to 40.9, its highest reading since January of this year, and was up from 32.0 in November.
Gregory R. Hohl, CEO and Board Director of Wahoo State Bank in Wahoo, Neb. says, “Interest rates are definitely impacting housing starts and sales along with higher insurance premiums and property tax obligations. This would be a third year of shortfalls with our farmers and does not bode well for many to continue.”
The RMI is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. The index provides the most current real-time analysis of the rural economy, Creighton University states.