Large Swath of the Country Left Untouched by Recession

A group of rural counties in the central U.S. has been largely untouched by the recession, in some cases even seeing an increase in economic activity, but the news isn’t all good for this shrinking "recession-proof" group. With a conservative outlook on life and finances, a large group of farmers and ranchers in 800 counties from the Great Plains to Texas has actually seen no real negative effects from the recession. The states in the so-called "safe zone" begin in the north in Montana and North Dakota and extend through South Dakota, Nebraska, Iowa, Kansas and Oklahoma before ending in Texas and New Mexico. The bad news, however, is that this group of counties has recently shrunk to about 200 in the past year.

With energy production and prices dropping, crop prices following suit and a decreased demand in Asia for American wheat, corn and soybeans, things are starting to look ominous. Said Wyoming Governor Dave Freudenthal, "To say that you’re doing pretty well is just to say that it’s the best-looking puppy in a pretty ugly litter." Proof that things are all rosy, Freudenthal had to make a 10 percent budget cut in his state to account for falling tax revenues.

Carl Rupp, a farmer in Wyoming, noted, "The last few years, ag has been pretty good. In the long run, if there is such a thing, it’s more stable than being in a county with energy as a primary industry. We miss out on the booms and busts, but overall we’re in pretty good shape." Still, with prices of agricultural products falling, some folks are concerned. Says Doug Goehring, agriculture commissioner for North Dakota, "If you really want to hurt the economy, beat the heck out of agriculture. It is a primary sector in our economy. It is generating new wealth. You can’t just rely on services to drive your economy."