Journal Article

Will the rural economy rebound with the rest of the nation?

Abstract: As the U.S. economy slipped into recession in 2001, an already lackluster rural economy lost even more steam. Since 1995, job growth in rural areas has trailed growth in metro areas. But in the wake of last year?s terrorist attacks, national recession, and falling food demand, job rolls in many parts of rural America have not only stopped growing but contracted. Meanwhile, commodity prices have only recently begun to turn around. As a result, farm incomes continue to rely on large government payments.> With the U.S. economy now in recession, the demand for most rural products - farm and nonfarm alike - has stalled. Many economic analysts expect the U.S. economy to turn around in 2002. But, are the prospects of a rural recovery as bright as the rest of the nation? Are both the Main Street and farm segments of the rural economy positioned to recover?> Henderson examines the impact of the current recession on rural growth, recaps rural performance in 2001, and explores the prospects for the year ahead. He suggests that, overall, rural areas seem poised to recover along with the rest of the nation in 2002, but only if demand for rural products rebounds.

Keywords: Farm produce; Rural areas; Rural development;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 2002

Volume: 87

Issue: Q I

Pages: 65-83