Rural Main Street Economy Faces Challenges

Survey Results and Expert Analysis

Key Findings

• The Rural Mainstreet Index fell to 442 in July 2024, marking an 11th consecutive month of decline.
• Bank CEOs and executives in 10 Rural Mainstreet States reported a drop in overall economic growth in February.
• Despite challenges, the Rural Mainstreet Economy has created 22 jobs over the past 12 months, outpacing national job growth.

CoBank's Outlook Report

CoBank's 2024 outlook report identifies several factors affecting agriculture and rural markets:

• Uncertainty in global markets due to geopolitical tensions and supply chain disruptions.
• Rising costs of production, including energy, fertilizer, and labor.
• Changes in consumer behavior and demand for agricultural products.

International Trade and Exports

According to the International Trade Association, regional exports of agricultural goods have declined in recent months. This decline is attributed to:

• Reduced demand from key export markets.
• Increased competition from other exporting countries.
• Trade barriers and tariffs.

Economic Recovery and Job Growth

Despite economic challenges, the Rural Mainstreet Economy has shown signs of improvement in certain sectors:

• Manufacturing and construction industries have experienced growth.
• Retail sales have remained stable in some areas.
• Tourism and hospitality sectors are recovering from pandemic-related declines.

Conclusion

While the Rural Mainstreet Economy faces challenges, there are also opportunities for growth and recovery. By addressing key factors such as global market uncertainty, rising costs, and changes in consumer behavior, stakeholders can support the resilience and sustainability of rural communities.