Many economists believe inflation will further ease this year, which cannot come soon enough for overburdened rural Americans, including those in New Mexico.

The Consumer Price Index -- the main indicator of inflation -- looks at the prices urban Americans pay for a set basket of goods.

Stephan Weiler, professor of economics at Colorado State University and co-director of the Regional Economic Development Institute, said people in rural America are not surveyed, leaving out relevant data on 14% of the U.S. population, or around 46 million people.

"It's also the segment of the population that is likely to be economically disadvantaged," Weiler pointed out. "Just because you're in a place that has disadvantages, shouldn't mean that you're also disadvantaged by the system as a whole."

By necessity, rural Americans tend to drive more because they have longer commutes to work, grocery stores and essential services, like education and health care. When transportation costs rise, rural residents especially end up with less discretionary income, according to an Iowa State University report. About 30% of New Mexico's population lives in rural areas.

Net farm income was forecast to decline 4.5% in 2022, which is still 26% higher than the 10-year average, according to AgAmerica.

Weiler noted even when agriculture has a good year, it does not mean "rural" residents have a good year.

"Rural is a lot of different things, and it's not ag," Weiler asserted. "I think a lot of people basically equate rural with ag, but 90% of rural income comes from non-ag sources. There are a few family farms out there, but they're relatively few and far between."

Weiler believes higher prices may be chipping away at paychecks of rural Americans at a higher rate than is being tracked by the federal government, which he believes should change the way it collects data.

"Having worked in various rural parts of the country -- rural California, rural Appalachia -- it's gotten to the point where even those people are saying, 'We actually need place-based policies.' It's not enough to focus on the people -- that places really, actually matter," Weiler concluded.

On Tuesday, 20 Colorado officials sent a letter to the state's congressional delegation protesting six cuts to public lands management in the new tax and spending bill signed into law by President Donald Trump.

John Clark, mayor of Ridgway, said the elimination of river and climate data programs, which are essential to managing the Colorado River Basin and forecasting drought, will put additional burdens on food producers.

"If our farmers and ranchers don't have accurate data about exactly what the situation is with the snow pack and what's happening with the climate, how can they be prepared for each growing season?" Clark asked.

Five active wildfires have burned more than 22,000 acres on Colorado's Western Slope. The letter urged state representatives to reject any additional cuts to the U.S. Forest Service's Community Wildfire Defense Grant Program or other mitigation efforts. Republicans have argued cutting the size of government is necessary to eliminate waste, fraud and expenditures they claim are unsustainable.

Officials are also calling out a provision in the new law they believe undermines local decision-making by forcing oil and gas leasing on public lands. In addition, the law creates new barriers for clean energy leases on public lands, a move Clark worries will lead to the loss of good-paying jobs.

"If we discourage clean energy on public lands, that's going to severely impact our alternative energy workforce," Clark pointed out. "If we can't do wind and solar on public lands, it disincentivizes clean energy all across the state."

Officials are also asking members of Congress to fully fund the National Park Service to ensure proper staffing and maintenance. Clark argued standing up for lands owned by all Americans is essential to preserving Colorado's iconic natural landscapes and rural economies.

"Our economy is hugely dependent on people coming in to visit us and eat at our restaurants and experience these beautiful outdoor environments," Clark emphasized.


get more stories like this via email

A Wisconsin nonprofit is working with farmers in Southeast Wisconsin to educate communities about the importance of agroforestry, with plans to establish its first urban site in Milwaukee.

The Michael Fields Agricultural Institute has planted more than 400 trees across three sites this year, in partnership with the Savannah Institute. The sites include a community garden and two farms.

Iris Lee, owner of Lee Hemp Farms in Burlington, said agroforestry collaboration is breathing life back into her nearly 50-year-old organic family farm.

"You plant and design things that go together," Lee explained. "That will help not only humans but the animals and nature and bugs."

Agroforestry integrates trees, shrubs and perennial plants into crop and livestock systems. Lee noted one of the project's goals is to raise awareness of the practices and their larger connection to food systems, climate change and communities. The sites will also be used for educational demonstrations.

Community members and project participants helped Lee plant a trail of more than 100 trees in April, from hazelnut and elderberry, to Juneberry and pawpaw trees. They have already grown two to three feet, and she anticipates the berry trees will yield results first. Lee added she even loves talking to her trees and emphasized the physical and mental health benefits of agroforestry.

"Growing something is therapeutic," Lee observed. "To be one with nature -- meaning you know where things come from that you put in your body -- anybody that is concerned about the food and their health, to grow something is to build upon a better human being."

Nolan Burkard, research technician for the nonprofit Michael Fields Agricultural Institute, said diversifying food systems in this way is a growing area of interest for small farmers. Through agroforestry, they can also improve soil health and local climate resilience.

Burkard emphasized it requires long-term investment to get there.

"It takes quite a while for trees to grow up and start fruiting or provide their benefit," Burkard acknowledged. "That's why this project is so important because it is such an investment to plant trees."

Burkard added the institute is accepting applications until July 26 for an urban site in Milwaukee. The selected site will receive $15,000 and planning support to aid in designing it.

Despite the elimination of a handful of alternative energy tax incentives in the new federal budget, Iowa corn farmers will benefit from one that was extended.

Tax breaks and rebates encouraging investment in solar and wind power in Iowa were eliminated in the federal spending plan. However, the Trump administration extended an incentive enabling farmers in Iowa to produce more corn. The Hawkeye State is the nation's top corn producer, much of which is used to produce ethanol.

Chris Bliley, senior vice president of regulatory affairs for the biofuel trade organization Growth Energy, said grain-based fuels burn cleaner and are more environmentally friendly.

"The credit actually goes for production of lower carbon fuels that are used for transportation," Bliley explained. "It includes on-road fuels as well as sustainable aviation fuel. And so, the lower in carbon, the higher the credit."

The Trump administration has made efforts to extract more fossil fuels, which it said will move the U.S. toward energy independence.

Lawmakers in Iowa and neighboring Midwest states have introduced their own tax incentives for biodegradable jet fuel, which Bliley noted will create economic benefits for ag producers.

"To remain competitive, plants in Iowa and Nebraska and throughout the Midwest are investing in some of these key projects to lower their carbon intensity," Bliley observed.

The commercial airline industry is aiming for net-zero carbon emissions by 2050, according to the International Air Transport Association, which could continue to benefit Iowa farmers who provide corn for ethanol production.


get more stories like this via email