Stagnant farm economy slows growth in Iowa, Nebraska - KWWL - Eastern Iowa Breaking News, Weather, Closings

Stagnant farm economy slows growth in Iowa, Nebraska

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LINCOLN, Neb. (AP) -- A stagnant farm economy and its ripple effects on other industries are creating budget problems for Nebraska and Iowa, both of which posted the nation's weakest income growth in a recent federal report.
   Key lawmakers from both states say they're concerned the agricultural downturn will persist, ripping through other sectors and putting additional strain on their budgets.
   The U.S. Bureau of Economic Analysis says declining farm income was the leading cause of the slowdown in many states, including Iowa and Nebraska. The bureau reports that incomes in both states increased just 0.1 percent in the last quarter, the lowest growth nationwide.
   Officials say the sluggishness also hurt agricultural manufacturing, lending, land-rental income and other industries tied to farming.

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