High interest rates, low prices for agricultural commodities and high costs for grain storage continue to weigh on the economy in the 10-state Midwest and Prairie region.

Creighton University's Rural Mainstreet survey in May returned an overall index reading of 44.2, down from 45.8 in April and below the growth-neutral level for the ninth consecutive month. Any reading above 50 on the index, which ranges from 0 to 100, indicates economic growth in the coming months, while readings below 50 indicate a contraction.

The survey's index of farmland prices fell below the growth-neutral threshold in May after being above it for 53 consecutive months, and farm equipment sales fell below the growth-neutral threshold for the 11th time in the past 12 months.

“Higher borrowing costs, tighter credit conditions and weaker grain prices are all weighing on farm equipment purchases,” said Creighton economist Ernie Goss, who oversees the monthly survey.

The survey's business confidence index, which looks ahead to the next six months, fell to 28.8 in May (from 37.5 in April), the lowest level since last November.

“Weak agricultural commodity prices and agricultural exports, combined with the decline in agricultural equipment sales in recent months, have continued to weigh on bankers’ confidence,” Goss said.

The Rural Mainstreet Index is based on a survey of rural bankers in Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming. It focuses on about 200 rural communities with an average population of 1,300 people.

North Dakota's overall index fell to 41.2 in May from 42.3 in April. The farmland price index fell to 46.5 from 54.1 in April and the new hiring index fell to 48.0 from 54.1 in April. According to the International Trade Association, exports of agricultural goods and livestock are 3.5% higher so far this year than the same period in 2023.

The full Rural Mainstreet report can be found at .

Meanwhile, another leading indicator of economic activity in the Midwest and Prairie regions remained weak in May.

The overall index for Creighton's Mid-America Business Conditions survey fell below the growth-neutral threshold of 50.0 for the third time in the past four months, now at 48.2, compared with 52.5 in April.

“Utility managers remained pessimistic about the outlook for 2024, with about 42% expecting slower economic growth for the remainder of 2024,” Goss said.

The Mid-America survey's business confidence index, which looks ahead to the next six months, rose slightly to 33.2, but remained well below the growth-neutral level.

North Dakota's overall business conditions index fell to a regional low of 40.2 in May from 44.8 in April. The overall index for May consisted of new orders 46.3, production or sales 40.6, lead time 45.2, employment 43.2 and inventories 28.8. The state's manufacturing sector saw a 2.9% increase in employment and a 1.7% decrease in hourly wages over the past 12 months, ranking last in the region, according to the latest employment data from the U.S. Bureau of Labor Statistics.

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