Iowa Politics with Jeff Stein -- Fri. Aug. 21, 2026

Trouble on the farm.

I'm Jeff Stein with today's Iowa Politics Report.

Dr. Ernie Goss of Creighton University is the country's foremost expert on the Midwest economy.

And we're pleased to say a frequent guest here on KXEL.

His monthly Rural Main Street Index Survey was just released and it's not great news for rural areas.

Now, this is a survey of bank CEOs in rural areas of a 10-state region, including Iowa, areas that are dependent on agriculture and or energy.

Now, while the overall Rural Main Street Index was above growth neutral for only the second time in the past six months, the separate and distinct Farm and Ranch Land Index fell below growth neutral for the first time since April of this year.

Here's a headline that could spell trouble.

As a result of weak farm equipment sales, bankers reported that borrowing to support farm equipment purchases now accounts for only 5.3 percent of overall ag lending, while real estate loans represented 52.6 percent of agriculture lending.

And the bank's CEOs

rated approximately 52.5 percent of farm borrowers in good condition.

That's barely a majority.

Not surprisingly, a large number of those same bankers say farm income will decline in the next 12 months.

47.5 percent of bankers hold that view.

Exports are improving, however.

in Iowa in particular.

According to trade data included in Dr. Goss's report, Iowa exports of agricultural goods and livestock for the first half of this year were up by 6.2 percent compared with the same period last year.

The biggest market increase was to Japan, a whopping 24.5 percent gain in exports from Iowa from last year to this.

So as the celebration of the county fairs and state fairs comes to a close, the hard work of harvest is ahead and the hard work of penciling out the balance sheet, which seems even harder these days.

And that's the Iowa Politics Report for Friday, August 21 on Twitter, Instagram, Gitter, Threads and Truth Social at Iowa Politics.

I'm Jeff Stein on News Talk 1540, KXEL.