Rural Mainstreet Index Falls Under Growth Neutral Again

The Rural Mainstreet Index remained below growth neutral for a fourth straight month in May as weak grain prices, rising input costs, and economic uncertainty continued to pressure rural economies across a ten-state region. Creighton University’s monthly survey of rural bank CEOs showed the overall index fell to 45.7 in May from 47.9 in April. A reading below 50 signals economic contraction. “Weakness in farm commodity prices and elevated agriculture input costs are spilling over into the rural business community,” said Creighton economist Ernie Goss. Nearly 48 percent of bankers surveyed said farmers’ financial conditions worsened in 2026 compared to a year earlier. The farm equipment sales index dropped to 18.2, marking the 33rd straight month below growth neutral. Bankers also pointed to volatility tied to the Iran conflict, higher fuel prices, and weak farm cash flow expectations. Despite economic pressure, first-quarter agricultural exports from the region increased 7.5 percent.

RFA Recommends Improvements to 45Z Regulations

The Renewable Fuels Association is urging the U.S. Treasury Department to quickly finalize regulations for the Section 45Z Clean Fuel Production Credit, saying continued delays are creating uncertainty for renewable fuel producers and investors. In testimony, RFA President and CEO Geoff Cooper said the tax credit has the potential to strengthen domestic energy production, support rural economies, and encourage innovation in renewable fuels and agriculture. “We believe that, if implemented effectively, the 45Z tax credit can stimulate domestic energy production, strengthen U.S. energy security, bolster rural economies, and drive innovation in the renewable fuels and agriculture industries,” Cooper said. RFA also called for the immediate release of an updated 45ZCF-GREET emissions model reflecting changes required under last year’s One Big Beautiful Bill Act. Cooper said producers are already halfway through the 2026 tax year without the updated model needed to determine emissions rates and tax credit values. 

Lawmakers Target Meatpacker Consolidation as Price Climb

Senate Minority Leader Chuck Schumer has introduced legislation aimed at lowering grocery prices by increasing competition within the U.S. meatpacking industry. Schumer unveiled the proposed “Family Grocery and Farmer Relief Act,” which would target consolidation among the nation’s largest meat companies while expanding support for smaller processors and producer cooperatives. “Corporate giants dominate the meat market and set prices sky-high for families, all while squeezing profits from farmers by eliminating competition, and it needs to end,” Schumer said. Schumer pointed to Tyson Foods, JBS, Cargill, and National Beef, saying the companies collectively control most U.S. beef, pork, and chicken processing capacity. His proposal would require major meatpackers to focus on a single protein sector instead of operating across multiple markets. The legislation would also provide financial and technical assistance for smaller meat processors and local supply chains. The proposal comes as beef prices continue climbing. Meating Place said USDA forecasts additional food price increases in 2026.

Vermont is First to Ban Paraquat

Vermont has become the first state in the nation to ban paraquat, a widely used herbicide linked in scientific studies to Parkinson’s disease. Governor Phil Scott signed the legislation, with the ban set to take effect November 1, 2026. The law includes limited temporary exemptions for certain fruit crops through 2030. The move comes amid growing national scrutiny surrounding paraquat as researchers continue examining potential links between long-term exposure and Parkinson’s disease, particularly among agricultural workers and chemical applicators. Studies cited by the National Institutes of Health have found that paraquat users may be about 2.5 times more likely to develop Parkinson’s disease. Although paraquat remains legal in the U.S., over 70 countries, including China and members of the European Union, have already banned the chemical. The debate intensified after Syngenta announced it would stop manufacturing and seeking sales of paraquat products in the U.S.

Campaign to Promote Cheese as a High-Protein Option

The dairy checkoff is using National Cheese Day on June 4 to promote cheese as a high-protein snack option through a new campaign aimed at younger, fitness-focused consumers. Dairy Management Inc. launched the “Body by Cheese” campaign through its Dairy Does More platform, highlighting cheese as a convenient protein source for active lifestyles. Central to the campaign is the “Parm Bar,” a two-ounce block of Parmesan packaged like a protein bar to spotlight cheese’s nutritional benefits. “Consumers already love cheese, but our opportunity is helping them think about cheese differently and creating new usage occasions,” said Aris Georgiadis (jor-jee-AH-dihs), DMI senior vice president of integrated marketing. The Parm Bar will not be sold in stores and instead will be distributed through influencer giveaways and social media promotions tied to National Cheese Day. DMI says Parmesan contains about nine grams of protein per ounce and hopes the campaign encourages consumers to view cheese as a snack food option.

Policy Change Good for U.S. Fertilizer Deliveries

The Fertilizer Institute is praising a temporary federal waiver on hours-of-service regulations for fertilizer deliveries, saying the move will help keep nutrients moving to farms during the busy planting season. The exemption will run from May 26 through Aug. 26, 2026, temporarily easing federal limits on driving hours and rest requirements for commercial truck drivers hauling fertilizer products. “TFI thanks USDA Secretary Rollins and DOT Secretary Duffy for recognizing the essential need of getting fertilizer from production plants and retailers to farmers exactly when and where it is needed,” said TFI President and CEO Corey Rosenbusch. The waiver is especially important because farmers have a limited window for fertilizer applications during spring planting. He added that transportation flexibility can help prevent supply chain bottlenecks as the industry transitions into summer and fall fertilizer demand. All fertilizer travels by truck at least once before reaching farms, making reliable transportation a critical part of the agricultural supply chain.

Thursday Watch List

Markets

On Thursday morning, the Bureau of Economic Analysis will release the first revision of first quarter U.S. GDP, along with the April Personal Consumption Expenditure report, both at 7:30 a.m. CDT. Later, the Energy Information Administration will release the delayed Petroleum Status report at 9:30 a.m. CDT, including last week's ethanol production.

Weather

An active zone of showers and thunderstorms continues over the Southeast on Thursday. Meanwhile, a batch of showers is moving northward through the Plains, hitting some very dry areas with some good rainfall. Additional showers will develop in the Pacific Northwest and could produce some severe weather.