The agricultural economy continues to shrink across President Joe Biden’s (D) America as inflation burdens the industry.
Creighton University’s Rural Mainstreet Economic Index currently sits below the growth neutral score of 50, Black Hills Fox reported Sunday.
The outlet noted the number meant it was the fifth straight month farming and ranching economies have seen the industry shrink.
In a post on its website Thursday, the university said:
The Creighton University Rural Mainstreet Index (RMI) fell for the sixth time in the past seven months, sinking below growth neutral for a fifth consecutive month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.
Overall: The region’s overall reading for October once again sank below growth neutral to 44.2 from 46.3 in September. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral. This was the fifth consecutive month the overall reading has fallen below growth neutral.
South Dakota Cattleman’s Association president Eric Jennings said that rising fuel and equipment costs due to inflation are putting a strain on the industry. https://t.co/4H2UPmvvSL
— KEVN Black Hills FOX (@BlackHillsFOX) October 23, 2022
Meanwhile, South Dakota’s RMI has sunk below the national average at 38.8, according to the Fox report. The outlet cited the state’s Cattleman’s Association President Eric Jennings, who said the high cost for fuel and equipment due to inflation is burdening those in the industry.
Jennings explained, “The farmers are being faced with much higher fertilizer costs. So, as you increase all those expenses, it decreases your profit margin even in a year where we’ve seen some positive prices.”
Prices for the diesel fuel American farmers and truckers rely on skyrocketed over the summer due to plaguing inflation, according to Breitbart News.
“High diesel costs elevate the prices of everyday goods, since the higher cost of transportation is often passed down to consumers. In turn, consumers restrain their spending habits at grocery and other retail stores, slashing demand and exacerbating an economic slowdown,” the outlet said.
Ninety-three percent of registered American voters are worried about high inflation and the state of the economy as the midterm elections approach, according to a recent Politico/Morning Consult poll.
“The issue of inflation is likely to hurt Democrats in the midterm election. Sixty-four percent say Biden’s economic and energy policies were either very or somewhat responsible for inflation,” Breitbart News reported.