Will the rural economy rebound in 2010?

Abstract

As the U.S. economy emerges from recession, prospects for a rural rebound in 2010 are also rising. After months of sharp contraction, the nation’s GDP rose solidly in the second half of 2009. Rural job losses also slowed as the year progressed, and commodity prices rebounded, spurring some optimism that farm profits could soon stabilize. ; The nation’s economic gains, however, have lacked the strength to spur robust job gains or bolster incomes, raising the specter of another jobless recovery. As the recoveries following the 1990-91 and 2001 recessions struggled to create jobs, rural areas enjoyed stronger job growth than their metro counterparts. This time around, rural economies have kept pace with their metro peers. But the question remains: Can rural economies rebound more quickly in the year ahead? ; Henderson reviews the state of the rural economy heading into 2010. He describes how falling demand brought an end to the farm boom in 2009. Next, he examines the impacts of the recession and financial crisis on rural Main Street activity. Finally, he explores how the rural economy in 2010 may be shaped by the national recovery and how stronger global economies and a weak dollar could offer new export opportunities in the year ahead.