Farm Progress America, September 5, 2025

Mike Pearson takes a look at what the Rural Main Street Index says about what is happening on Midwest Farms.

The Rural Main Street Index is a monthly survey of bank CEO's across 10 Midwestern States that measures the economic health of communities dependent on agriculture and energy.

A score above 50 signals growth and a score below 50 signals contraction.

The survey polls rural bankers across the region following the August results.

Meek low ag prices for grain production continue to dampen the economic activity.

Bankers expect almost one-fifth of grain farmers to experience negative cash flow for 2025. Corn and soybean prices will fall below the breakeven threshold squeezing margins and keeping optimism low.

Farmland values are also showing weakness. The farmland price index registered 46.2 in August beneath the growth neutral point for the 15th time in 16 months.

Elevated interest rates, higher input costs and tariff volatility are adding pressures to the real estate markets.

On the equipment side, the news even tough.

Farm equipment sales slumped to just 14.6 percent in August that marks the 24th straight month in negative territory and low commodity prices keep farmers from upgrading machinery.

And trade flow is part of the story as well. According to the International Trade Association, ag exports, from the Rural Main Street Region fell nearly 13 percent in the first half of 2025 dropping from $6.2 billion in 2024 to $5.4 Billion in 2025 so far.

Related: Farm Progress America September 4, 2025

Despite all the headwinds, rural bankers report loan delinquency and bankruptcies are holding steady.

Farm loan troubles have only inched up 1.2 percent over the past six months showing most farmers are still meeting their obligations.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness .