Nebraska’s Rural Economy Performing Above Midwest Average

A Midwest economic survey shows continued growth in Nebraska’s rural economy. Slightly more than 60 percent of bank CEO’s in a 10-state Midwest region, including Nebraska, reported economic growth over the last month in the latest “Rural Mainstreet” Index (RMI). Creighton University professor Ernie Goss compiles the survey and compared Nebraska’s index to the average.

“The overall number for Nebraska was slightly higher than six out of 10 or 60 percent. Things are really expanding out there,” he said, “particularly in the areas where there’s a large agricultural component of the economy, so that’s looking much better with these grain prices.”

The state’s RMI over the last month increased to 88.0 from 77.1 in April.

Goss notes rising grain prices are driving the uptick in cash rent per acre and farmland prices. Farmland prices throughout the region have increased for eight straight months. That’s the longest stretch since 2013. He says rent per acre has grown approximately seven percent since last year.

Goss says what needs improvement is hiring in rural areas. The market lacks qualified workers looking for jobs. Goss says this trend is stunting the economy’s growth. He attributes the lack of workers to COVID-19 and more generous unemployment benefits. Also, small businesses have been working with narrow profit margins since March 2020.