Insights About America’s Rural Communities
A 2023 Economic Research Service report revealed that:
“Changes in rural America’s population, poverty, and employment over the last few years reveal three main findings. First, the rural population is growing again following a decade of negative or near zero growth rates. This growth has been driven by domestic migration into rural areas. Second, rural poverty has declined over the last 15 years in most rural counties, but not all, and the declines have been modest. Housing insecurity is an issue for low-income renters, a particularly acute problem for American Indian or Alaska Native and Hispanic households. Finally, rural employment has almost fully recovered from the COVID-19 pandemic and has returned to modest annual growth rates similar to prepandemic levels” (Davis et al., 2023, p 21).
The C-FARE August webinar provides some insight into America’s rural spaces with respect to housing, employment and finding a sense of community.
Andrew Van Leuven – Neighborhood ‘Third Place’ and Local Home Values
Andrew Van Leuven presented research on the impact of "third places" on rural communities. These are locations outside of the home and workplace where people gather, such as coffee shops, bars, and restaurants. His research, done in collaboration with Amanda Weinstein of the Center on Rural Innovation, stemmed from his interest in downtown revitalization and its potential to boost job creation and property values. He explored whether the type of businesses present in these downtown areas—particularly third places—plays a significant role in improving the quality of life and enhancing community engagement. The study included insights from extension agents in Oklahoma, who highlighted how third places foster social capital and serve as anchors in their communities.
Van Leuven and Weinstein also conducted a study to examine the relationship between the concentration of third-place businesses and home prices. The results showed that third places, especially eating and drinking establishments, are statistically associated with higher home prices, with a stronger correlation in urban areas than in rural ones. However, the research also revealed that "churn," or the turnover of new businesses entering and exiting a market, was positively linked to home prices, indicating a healthy local economy. Van Leuven emphasized that, while there is a clear association between third places and home prices, more research is needed to determine the causality of this relationship.
Steven Deller – Off-Farm Income and Dependencies on Vibrant Rural Communities
Steven Deller’s presentation explored the evolving relationship between rural economies and farming, challenging the traditional belief that a vibrant farm economy is sufficient for a thriving rural community. Historically, a healthy farm economy was viewed as the backbone of rural prosperity, but modern data suggests that this connection has weakened. Using the Agricultural Resource Management Survey (ARMS), Deller examined farm household income from 2018 to 2022, revealing that while larger farms often generate substantial income, most farms fall into lower sales categories, with a significant portion of household income coming from off-farm sources. Notably, nearly 80% of farm household income is derived from off-farm employment, with smaller farms often relying almost entirely on these non-agricultural earnings.
Deller highlighted that off-farm jobs are critical for many farm families, providing not just financial support but also access to essential benefits like health insurance. Contrary to expectations, both grain and livestock farms exhibited high reliance on off-farm income, indicating a shift in how farm families sustain themselves. This trend suggests that rural development policy, particularly in the farm bill, needs to expand beyond agriculture to ensure the creation of well-paying off-farm employment opportunities. Such policies could help support both the farm economy and the broader rural community, reflecting the changing realities of rural life.
Mark C. White – Rural Issues of Note: Workforce
Mark White's presentation examined key trends shaping the rural workforce, focusing on the demographic challenges that have led to a shrinking labor force in rural areas. Aging populations, outmigration of young working-age individuals, and health crises like the opioid epidemic limit labor force participation and growth in many rural communities. While some areas have seen slight population growth during the pandemic, this has not translated into workforce growth. Additionally, migration patterns vary by demographic group, with many young people leaving rural areas for education and career opportunities, resulting in a “brain drain.” Retirees and remote workers are moving into some rural, often recreational areas, but this population growth does not always come with similar growth in the labor force.
White also discussed opportunities and challenges facing rural employment. Although sectors like manufacturing and local government have experienced declines, they remain important sources of jobs for rural workers. Since the pandemic there has been a surge of entrepreneurial energy, as demonstrated by the rise in business applications in rural counties. As a result, many rural workers are looking to create their own jobs or sources of supplemental income. White emphasized the need to support aspiring entrepreneurs by utilizing existing resources and ensuring services reach diverse groups. Encouraging entrepreneurship and addressing workforce migration trends will be crucial to revitalizing rural economies and creating sustainable employment opportunities.
Davis, J. C., Cromartie, J., Farrigan, T., Genetin, B., Sanders, A., & Winikoff, J. B. (2023). Rural America at a Glance 2023 Edition (Report No. EIB-261). U.S. Department of Agriculture, Economic Research Service.
This program is supported in part by the Agricultural and Applied Economics Association and the US Department of Agriculture’s Economic Research Service, and the National Agricultural Statistics Service.
Those who register but cannot attend our webinar can always view a recording of it later at the council’s YouTube channel.