Journal Article

Will the farm rebound lead a rural recovery?

Abstract: Economic headlines in rural America were mostly positive in 2003, especially in the farm sector. The farm economy broke out of its drought-induced recession. Low global crop supplies, strong demand, and high prices underpinned strong gains in U.S. farm income. Meanwhile, the nation?s economic recovery appeared to forge a beachhead in rural America as job losses and factory closures eased in 2003. ; It still remains unclear, though, whether the rural economy can build upon the optimism of 2003 in the coming year. Farm finances have improved, global supplies remain low, and prices are relatively high, but demand for U.S. farm products remains uncertain, especially in the light of the recent mad cow incident. While job losses on Main Street have eased, rural communities continue to struggle as they try to create the high-skill, high-wage jobs that pace U.S. economic growth. ; Henderson discusses some of the economic headlines for the rural economy in the past year and the outlook for 2004. He describes the top economic stories emerging from the farm economy. Next, he examines the economic headlines on Main Street. Finally, he explores the outlook for the rural economy in the year ahead. If rural communities are to do well in 2004, demand for U.S. farm products must remain strong and new high-skill, high-wage opportunities must be created on rural Main Streets.

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 2004

Volume: 89

Issue: Q I

Pages: 65-80