Rural Mainstreet Index Falls Below Growth Neutral for Fourth Straight Month
According to the May survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the overall Rural Mainstreet Index (RMI) dropped below growth neutral for the fourth straight month.
Overall: The region’s overall reading for May dropped to 45.7 from April’s 47.9. This marks the 15th time since January 2025 that the index has moved below the growth neutral threshold. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.
“Weakness in farm commodity prices and elevated agriculture input costs are spilling over into the rural business community. Approximately, 47.8% of bankers reported that the financial position of farmers in their area had deteriorated in 2026 from 2025,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
Farming and ranchland prices: After three straight months of falling farm and ranchland values, the region’s farm and ranchland price index expanded for May to a tepid 50.1 from 48.0 in April. “Though farm and ranchland values have been holding up much better than farm income, weak farm income, lower farm liquidity and tougher credit standards have restrained farmland values,” said Goss.
According to the most recent trade data from the International Trade Association (ITA), regional exports of agriculture goods and livestock for the first quarter of 2026, compared to the same period in 2025, climbed by 7.5% to $2.93 billion. Regional exports of agriculture goods and livestock to China for the first quarter of 2026, compared to the same period in 2025, rose by 76.9% to $206.7 million.
Farm equipment sales: The May farm equipment sales index slumped to a very weak 18.2 from April’s 26.1. This is the 33rd straight month that the index has fallen below growth neutral.
Confidence: Rural bankers remain pessimistic about economic growth for their area over the next six months. The May economic confidence index slumped to 34.8 from 39.1 in April. “In spite of the potential for year-round E-15 ethanol sales, weak grain prices, higher input prices and expected negative farm cash flows continue to weigh on banker confidence,” said Goss.
This month, approximately 47.8% of bank CEOs reported that financial conditions for farmers and ranchers had deteriorated in 2026, compared to 2025.
Below are the state reports:
Nebraska: The state’s Rural Mainstreet Index for May decreased to 51.4 from 53.9 in April. The state’s farm and ranchland price index for May declined to 51.8 from 54.4 in April. Nebraska’s new hiring index dropped to 47.7 from 54.8 in April. According to trade data from the ITA, Nebraska exports of agriculture goods and livestock for the first quarter of 2026, compared to the same period in 2025, sank by 16.6% to $271.7 million.
Iowa: May’s RMI for the state fell to 44.3 from April’s 46.4. Iowa’s farm and ranchland price index for May expanded to 48.4 from 46.4 in April. Iowa’s new hiring index for May sank to 40.3 from April’s 46.3. According to trade data from the ITA, Iowa exports of agriculture goods and livestock for the first quarter of 2026, compared to the same period in 2025, climbed by 25.4% to $583.1 million.
The survey represents an early snapshot of the economy of rural agriculturally- and energy-dependent portions of the nation. The Rural Mainstreet Index is a unique index that covers 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. The index provides the most current real-time analysis of the rural economy. Goss and the late Bill McQuillan, former Chairman of the Independent Community Banks of America, created the monthly economic survey and launched it in January 2006.
Nebraska Extension hosts drought management webinar for beef producers
As drought conditions continue to affect much of Nebraska, beef producers are being forced to make difficult decisions about herd and forage management. To support producers navigating these challenges, Nebraska Extension will host a free webinar on Thursday, June 11, from 6:30 to 8 p.m. Mountain Time / 7:30 to 9 p.m. Central Time.
The webinar, “Management Options in Drought,” will feature University of Nebraska–Lincoln specialists who will cover key management practices and decision-making strategies to help mitigate the effects of drought.
Topics include drought outlook, range/pasture conditions and production, confinement feeding cows and early weaning calves, planting summer annuals for forage, and new drought planning tools. Eric Hunt, agricultural meteorologist; Karla Wilke, cow-calf management specialist; Mitch Stephenson, range and forage specialist; Jerry Volesky, range and forage specialist; and Tonya Haigh, National Drought Mitigation Center, will provide practical guidance for those in drought conditions. Patrick Lechner, program chief with the Nebraska Farm Service Agency, will discuss available drought assistance programs.
“This webinar is designed to provide actionable information to help producers make sound, timely decisions during drought,” said Aaron Berger, Nebraska Extension beef educator. “Lower production on rangeland, due to lack of precipitation or wildfires, will result in ranchers and cattlemen looking for alternatives.”
To attend remotely via Zoom, register online at https://go.unl.edu/drought2026. No cost to attend. A recording of the webinar will be made available following the event for those unable to attend live.
For more information, contact Berger at 308-235-3122.
Record High Pork Production in April
Commercial red meat production for the United States totaled 4.46 billion pounds in April, down 3 percent from the 4.60 billion pounds produced in April 2025.
Beef production, at 2.10 billion pounds, was 6 percent below the previous year. Cattle slaughter totaled 2.34 million head, down 9 percent from April 2025. The average live weight was up 36 pounds from the previous year, at 1,467 pounds.
Veal production totaled 1.5 million pounds, 29 percent below April a year ago. Calf slaughter totaled 7,100 head, down 31 percent from April 2025. The average live weight was up 16 pounds from last year, at 371 pounds.
Pork production totaled 2.35 billion pounds, up slightly from the previous year. Hog slaughter totaled 10.7 million head, down 1 percent from April 2025. The average live weight was up 2 pounds from the previous year, at 293 pounds.
Lamb and mutton production, at 10.4 million pounds, was down 19 percent from April 2025. Sheep slaughter totaled 178,900 head, 13 percent below last year. The average live weight was 114 pounds, down 9 pounds from April a year ago.
By State (million pounds - % April '25)
Nebraska ...........: 620.4 95
Iowa ..................: 763.7 101
Kansas ..............: 480.2 99
January to April 2026 commercial red meat production was 17.7 billion pounds, down 2 percent from 2025. Accumulated beef production was down 6 percent from last year, veal was down 25 percent, pork was up 1 percent from last year, and lamb and mutton production was down 7 percent.
What’s Going On With Carcass Size?
A review of the Beef On Dairy Dialogue from Thursday, May 14
Archived here: https://i-29moou.com/beef-on-dairy-dialogue
The Beef on Dairy Dialogue webinar series is an extension of the annual Dairy Beef Short Course held in conjunction with the Central Plain Dairy Expo each March. The short course is the longest running program focusing on steers with dairy genetics in the US with 15 years of continuous programming. The short course is sponsored by the I-29 Moo University, a consortium of Extension specialists from Iowa State University, University of Minnesota, University of Nebraska at Lincoln and South Dakota State University.
The presenter was Dr. Warren Rusche who serves as an Assistant Professor and SDSU Extension Beef Feedlot Management Specialist at South Dakota State University. His outreach and research efforts focus on strategies for enhancing the value of crops and livestock to improve rural profitability across South Dakota. Prior to his current role, he served as a cow/calf field specialist based in Watertown and was the co-manager of his family’s cow-calf and cattle feeding business in South Dakota for thirteen years. He earned an MS in Animal Science from Kansas State University and a Ph.D. in Animal Science from South Dakota State University.
Dr. Warren Rusche’s recent Beef on Dairy Dialogue webinar examined the long-term trend toward larger beef cattle carcasses and the opportunities and challenges this creates for the beef industry. Drawing on more than 60 years of USDA data, Rusche explained that average carcass weights have steadily increased by approximately 4.5 pounds per year, largely driven by economics and strong beef demand. As cattle inventories remain historically tight, producers and packers continue seeking ways to maximize value from each animal, encouraging the production of heavier cattle.
Rusche shared findings from a six-year research project involving Limousin, Angus, and Limflex genetics. The study evaluated cattle fed for extended periods of up to 270 days, comparing performance, carcass characteristics, and profitability. Results showed substantial increases in both live and carcass weights as feeding periods lengthened. Steer carcass weights rose from roughly 900 pounds to more than 1,065 pounds. Although feed efficiency declined as cattle became heavier, Rusche emphasized that profitability improved because the additional pounds generated greater carcass value and wider profit margins.
The presentation highlighted how the economics of heavier cattle are influencing the entire supply chain. Packers, once resistant to larger carcasses, are increasingly accepting them because heavier animals provide more saleable beef and stronger financial returns. However, Rusche cautioned that larger carcasses also create new challenges. Oversized retail cuts, particularly ribeyes, may exceed consumer preferences, and heavier carcasses can be more difficult to cool properly during processing.
Management concerns associated with larger cattle were another major focus of the webinar. Rusche noted that heavier cattle place added stress on handling systems and equipment, increasing the need for larger squeeze chutes, more pen space, and updated transportation considerations. Bruising rates have also increased, contributing to trim losses and reduced carcass value. In addition, larger cattle appear more vulnerable to heat stress and health complications related to heart and lung capacity.
Rusche discussed potential strategies to address these concerns, including longer forage-based growing programs and more targeted genetic selection. Research on extended forage feeding periods showed that cattle could remain leaner while still adding carcass weight if fat deposition was managed effectively. In beef-dairy cross cattle, extending feeding periods by 17 days increased carcass weight by approximately 12 pounds, although current market conditions only added about $20 per head in value.
The webinar also addressed drought management strategies and mortality concerns. Rusche suggested early weaning and dry lot systems may become increasingly important during drought conditions, especially as replacement cows remain expensive. Discussions on late-term mortality in dairy-beef cattle emphasized the importance of managing lung and digestive health early in life and quickly identifying animals showing signs of stress or illness.
Finally, Rusche explored genetic trends shaping the dairy-beef sector. Angus genetics are expected to remain dominant because of their availability and market acceptance, although some producers continue experimenting with alternative breeds such as Charolais. Throughout the discussion, Rusche stressed that while economic incentives favor larger cattle, maintaining beef quality and meeting consumer expectations will remain critical for long-term industry success.
What’s Up Next…
The June Beef On Dairy Dialogue will be held at 12 noon CDT on Tuesday, June 16 featuring Dr. Kendall Swanson presenting on Energetics of Changes in Liver Size and Health in Calves. His presentation will focus on: Unique aspects of beef on dairy and dairy calves for finishing; GIT development; Energetics of liver and GI tissues as influenced by diet, physiological state, etc. and Energetics
Kendall Swanson is a Professor of Beef Production Systems in the Department of Animal Sciences at North Dakota State University. Kendall grew up on a crop and livestock farm in southeastern North Dakota. He received his BS and MS in Animal and Range Sciences at North Dakota State University and his PhD in Ruminant Nutrition at the University of Kentucky. He then worked as a Research Associate at the USDA Meat Animal Research Center. Before returning to North Dakota in 2010, Kendall was on faculty at the University of Guelph. Kendall’s research program focuses on improving the efficiency of feed utilization of finishing cattle and pregnant cows, and on digestive physiology and energy metabolism in ruminants. He also teaches undergraduate and graduate courses in nutrition and physiology and serves as the department graduate coordinator.
There is no fee to participate in the webinar; however, registration is required at least one hour prior to the webinar. Register online at: https://go.iastate.edu/TULMX2.
For more information; in Iowa contact, Fred M. Hall, 712-737-4230; in Minnesota contact, Jim Salfer, 320-203-6093; in South Dakota contact, Warren Rusche, 605.688.5452 or in Nebraska contact, Kortney Harpestad, 507.525.3584.
Churn Up the Volume — Ice Cream Season Sends Cream Demand Soaring
Fred Hall, Dairy Field Specialist, ISU Extension
As Memorial Day ushers in the unofficial start of summer, America’s favorite frozen treat is once again taking center stage. That’s especially true in Le Mars, Iowa, known as the "Ice Cream Capital of the World". The city produces more ice cream by a single company—Wells Enterprises (makers of Blue Bunny)—than any other city in the world From classic chocolate scoops to creative new flavors featuring brownies, churros, and even trendy Dubai chocolate, ice cream remains a beloved staple for millions of consumers — and an important driver of the U.S. dairy economy.
According to recent dairy production data, U.S. regular ice cream production reached 176.7 million gallons during the first quarter of 2026, up 1.6 percent from the same period a year earlier. Low-fat ice cream production, however, slipped 1.7 percent to 49.4 million gallons, signaling that many consumers continue to favor richer, more indulgent products.
The enduring popularity of ice cream was reinforced in the 2026 National Ice Cream Survey conducted by the International Dairy Foods Association and Morning Consult. The survey found that 97 percent of Americans either like or love ice cream. Chocolate ranked as the nation’s favorite flavor this year, followed by butter pecan and vanilla, while hot fudge claimed the title of favorite topping among 31 percent of respondents. Flavor remained the top reason consumers choose one ice cream product over another, even ahead of price.
The industry continues to evolve as manufacturers compete for attention in grocery store freezers. Soft-serve ice cream sold in tubs for home use is gaining popularity, while ice cream makers are increasingly incorporating baked goods such as pound cake, brownies, and churros into frozen desserts. Health-conscious consumers are also driving demand for higher-protein and lower-fat options.
Ice cream’s influence extends far beyond the dessert aisle. Because ice cream relies heavily on cream and butterfat, strong summer demand can significantly impact dairy markets nationwide. Ice cream typically contains 10-16 percent butterfat, requiring manufacturers to purchase large amounts of cream during peak production months.
That seasonal demand often pushes cream prices higher, especially during the summer when milk production from dairy cows can decline due to heat stress. The resulting supply squeeze can raise costs not only for ice cream producers, but also for butter makers, bakeries, and other food manufacturers that rely on cream.
The connection between ice cream and dairy pricing is also reflected in federal milk pricing formulas. Under the U.S. Federal Milk Marketing Order system, milk used for butter and ice cream falls into the same pricing category, meaning stronger ice cream demand can help boost milk values across the dairy supply chain.
Even so, dairy farmers receive only a modest share of the retail price consumers pay for premium frozen desserts. According to USDA farm-share estimates, farmers received about 19 percent of the retail price of ice cream in 2024, compared to roughly 57 percent for butter. The difference reflects the additional costs associated with processing, flavoring, packaging, marketing, and distributing ice cream products.
Meanwhile, global dairy demand is also showing renewed strength. At the latest Global Dairy Trade auction, milk powder prices increased again, helping lift the overall index by 0.6 percent for the second consecutive gain. Combined with strong summer ice cream demand, those trends could help support cream and butter markets heading into late summer.
For consumers, that means the innovative flavors and frozen treats to enjoy this summer may come at a higher cost — remember that every scoop also plays a role in supporting America’s dairy industry.
House Transportation & Infrastructure Reveals Surface Transportation Bill
House Transportation & Infrastructure Committee leaders this week introduced a five-year bipartisan reauthorization bill to invest in improving America’s surface transportation infrastructure.
According to a news release, the BUILD America 250 Act would provide $580 billion in funding for repairs and improvements to roads, bridges, rail, and other infrastructure transportation projects. The House Transportation & Infrastructure Committee began a marathon markup of the legislation on Thursday. ASA is monitoring the ongoing debate and engaging with Committee members throughout amendment debate.
A strong supply chain built on reliable infrastructure is the largest advantage for American farmers over competitors abroad, according to the American Soybean Association. ASA has long advocated for efficient funding to maintain resilient transportation and infrastructure systems, including waterways, rail, trucking, and pathways for increased exports. ASA appreciates Committee Chairman Sam Graves (R-MO) and the Ranking Member Rick Larsen (D-WA) for efforts to strengthen U.S. transportation infrastructure.
Dairy Market Report - May 2026
Milk production grew 2.3% on a liquid basis in March, marking the fourth consecutive month of positive but slowing milk production. Despite decelerating production, milkfat supplies remain ample, and CME butter prices have eased over the last month as a result.
Skim solids tell a different story: Nonfat dry milk (NFDM) prices set records throughout April and into May as new cheese capacity and insatiable demand for high-protein dairy products competed with dryers for milk. Yogurt and cottage cheese production and retail sales continue to gain momentum, and whey protein concentrate use rose almost 20% in March despite steep prices.
However, even as protein demand remains high, warning signs of economic pressures on consumers are beginning to flash. Inflation in April accelerated to 3.8%, and consumer sentiment dropped to a record low. Economic pressures have translated to softer foodservice volumes, highlighted by cheese and butter domestic use easing. Overall, the Class IV rally driven by NFDM has helped buoy the All Milk Price, resulting in a March DMC Margin of $9.57/cwt, yet that improved margin disguises significant regional variation.
See the full report here: https://www.nmpf.org/dmr-may-2026/.
RFA Partners with Kansas City Diamonds as Official Fuel Sponsor
The Renewable Fuels Association is partnering with the Kansas City Diamonds as the “Official Fuel” of the organization for the inaugural Professional Softball League season.
The partnership brings E15, a lower-cost, American-made fuel option, to the forefront of one of the fastest-growing areas in sports while supporting the continued growth of women’s professional athletics.
With the Diamonds set to compete in a 40-game season featuring national television coverage, the collaboration will connect E15 with fans across Kansas City and audiences nationwide through a variety of in-game activations, branding opportunities and community engagement initiatives.
“Our goal is simple: showcase E15 as a cleaner, smarter fuel choice while supporting the growth of women’s professional sports,” RFA Senior Vice President for Industry Relations and Market Development Robert White said. “By aligning with the KC Diamonds, we’re reaching fans locally, regionally and nationally while celebrating teamwork, performance and community.”
As part of the partnership, E15 branding will be featured prominently throughout the season, including jersey patch placement as a founding brand partner, outfield signage during games and broadcasts and multiple fan-focused experiences at Diamonds home games.
Fans can also expect interactive promotions throughout the season, including the “Fuel Up with E15” inning featuring games, giveaways and prizes during select home contests. The Diamonds and RFA will also host an E15 Fan Appreciation Night on July 25 to celebrate supporters of both the team and renewable energy initiatives.
“This partnership represents two organizations focused on growth, innovation and community impact,” Kansas City Diamonds President Jeremy McDowell said. “We’re excited to work alongside RFA to create engaging experiences for fans while helping bring more visibility to both women’s professional softball and renewable fuels.”
Additional gameday activations and community initiatives tied to the partnership will continue to roll out throughout the season as the Diamonds prepare for their inaugural campaign.
The collaboration is also supported by RFA members Show Me Ethanol, Mid-Missouri Energy, East Kansas Agri-Energy, Kansas Corn, Missouri Corn and Pinion. Learn more at www.FuelTheDiamonds.com.
Fans interested in learning more about E15, including station locations and fuel information, are encouraged to visit the Renewable Fuels Association online.
About the Kansas City Diamonds
The Kansas City Diamonds are a competitive fastpitch softball organization dedicated to excellence on the field and impact off it. Focused on empowering athletes and inspiring the next generation, the Diamonds strive to build a strong community through sport, leadership and service. Learn more at https://thekcdiamonds.com/.
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