(Shenandoah) — Farmers are becoming collateral damage in the Trump Administration’s continuing trade war.

That’s according to Creighton University Economics Professor Dr. Ernie Goss. Goss says the impact of tariffs on foreign goods is reflected in September’s Rural Mainstreet Index Report. The recently-released survey of bankers in a 10-state region–including Iowa, Nebraska and Missouri–dipped from 48.1 in August to 38.5 this month. Speaking on KMA’s “Morning Line” program Monday morning, Goss adds that 75% of bank CEOs surveyed reported that increased tariffs are having a negative impact on farm operations. He adds the tariffs are also impacting U.S. trade partners.

“China, for example, has not bought any soybean from the U.S. since May,” said Goss, “and of course, they just recently closed a deal with Brazil. So, that’s one example where they’re retaliating against U.S. tariffs with Chinese products coming in.”

Farmland prices dropped below growth neutral for the 16th time in the past 17 months. September’s farmland price dropped to 45.8 from 46.2 in August. Farm equipment sales improved slightly from 14.6 in August to 15.2 in September. Goss says farm income is also a concern.

“Now, prices are coming down, but not nearly as much as farm income is coming down,” said Goss. “We had 2023, ’24 and now ’25 is stacking up to be another bad year for farm income. We just need to see some action on the trade front. That would turn things around. But, it doesn’t look like at least in the near term we’re seeing that right now.”

Goss says one positive factor is the Federal Reserve’s recent quarter-percentage point reduction in interest rates.

“Long-term interest rates rose after the rate cut,” said Goss. “But on the short end, short term interest rates, they have come down. For example, the prime interest rate went from 7 1/2 to 7 1/4. So, it helps a little bit in terms of buying equipment. Equipment purchases have been very weak across the region, and of course, that helps a little bit.”

Goss, however, expects the Federal Reserve to cut interest rates further in late October. You can hear the full interview with Dr. Ernie Goss here:

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Creighton University Economics Professor Dr. Ernie Goss analyzes the latest Rural Mainstreet Index report, a survey of bank CEOS in a 10-state region.

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