Iowa’s rural mainstreet index sank below growth neutral for a seventh consecutive month, falling to 34.5 in March from 38.8 in February.

The state’s farmland price index also declined, dropping from 54.4 to 51.4. Iowa’s new hiring index, however, increased from 45.7 to 46.8 in March.

Over the past 12 months, the state’s rural mainstreet economy experienced a job gain of 1.1% compared to 0.7% for urban areas of the state, according to U.S. Bureau of Labor Statistics data.

The 10-state region’s overall reading fell from 46.2 to 38.0, its lowest level since June 2020. The index ranges from 0 to 100, with a reading of 50.0 representing growth neutral.

“Higher interest rates, weaker agriculture commodity prices and higher grain storage costs  pushed the overall reading to its lowest level since the early months of the pandemic,” Ernie Goss, Creighton University’s chair in regional economics, said in a prepared statement.

Other regional findings from the report:

• The farmland price index dropped to 56.0 from 57.7 in February. The index has remained above growth neutral for 52 consecutive months. “Creighton’s survey continues to point to solid, but slowing, growth in farmland prices,” Goss said. “Approximately 16.0% of bankers reported that farmland prices expanded from February levels.”
• The farm equipment sales index plummeted from 49.5 in February to 30.4, the lowest reading since May 2020. “This is the ninth time in the past 10 months that the index has fallen below growth neutral,” Goss said. “Higher borrowing costs, tighter credit conditions and weaker grain prices are having a negative impact on the purchases of farm equipment.”
• The loan volume index increased to 79.2 from 66.0 in February; the checking deposit index improved to 62.5 from February’s 48.0; and the index for certificates of deposits and other savings instruments was 72.9, up from 60.0.  
• The new hiring index rose to 52.2 from 49.0. “Approximately 87% of bankers reported no change in hiring from February’s hiring activity,” Goss said.
• The home sales index increased to 41.7 from 35.4.
• The retail sales index for March dropped to 39.6 from 44.0.