Iowa’s rural mainstreet index continued its slump in February, dropping to 32.8 from 40.7 in January.

The state’s farmland price index dipped to 38.1 from 41.3 in January, and the new hiring index fell to 40.8 from 46.2.

Iowa exports of agriculture goods and livestock for all of 2024, compared with 2023, rose by $30.2 million for a 2.0% gain, according to trade data from the International Trade Association. Mexico was the No. 1 destination for 2024 ag exports, accounting for 63.4% of total state agriculture and livestock exports.  

For the 17th time in the past 18 months, the 10-state region’s overall rural mainstreet index reading was below growth neutral, slumping to 38.0 from January’s 42.3. The index ranges from 0 to 100, with a reading of 50.0 representing growth neutral.

Only 9% of bankers expect positive outcomes for rural mainstreet from President Donald Trump’s tariff actions.

“The economic outlook for grain farmers remained weak for 2025. However, grain prices have recently improved, but not enough for profitability for many producers,” Ernie Goss, Creighton University’s chair in regional economics, said in a prepared statement. “On the other hand, regional livestock producers continue to experience solid prices with only 9.3% of bankers expecting negative cash flow for ranchers in 2025.”

The region’s farmland price index sank below growth neutral for the eighth time in the past nine months, dropping from 42.0 to 40.0, its lowest level since 2024. “Elevated interest rates and higher input costs, along with below breakeven prices for a high share of grain farmers in the region, have put downward pressure on ag land prices,” Goss said.

Regional exports of agriculture goods and livestock for all of 2024, compared with 2023, rose by $747.8 million for a 6.1% gain, data from the International Trade Association shows. Mexico was also the No. 1 destination for 2024 regional ag exports, accounting for 47.7% of total regional agriculture and livestock exports.

The farm equipment sales index rose to a weak 18.2 from 17.4 in January, which was the lowest reading since October 2016. “This is the 19th straight month that the index has fallen below growth neutral,” Goss said. “High input prices, tighter credit conditions and weak farm grain prices are having a negative impact on the purchases of farm equipment.”

Other regional findings from the report include:

• The loan volume index increased to 60.4 from 60.0 in January; the checking deposit index improved to 58.7 from 48.0; and the index for certificates of deposits and other savings instruments climbed to 62.5 from 58.0. Federal Reserve interest rate policies have boosted CD purchases above growth neutral for 27 straight months.
• The new hiring index dropped to 43.5 from 47.9 in January.

• The February confidence index sank to 40.0 from January’s 42.3 “Weak grain prices and negative farm cash flows, combined with downturns in farm equipment sales over the past several months, continued to push banker confidence below growth neutral,” Goss said.  
• The home sales index softened to 37.0 from 40.0.
• The retail sales index sank to the lowest level since the pandemic, falling to 28.3 from 44.0 in January.