The largest drops in personal income in rural counties between 2005 and '06 were clustered in farming counties in the Great Plains; the declines appear to have been caused, in part, by lower federal crop payments.
Farming counties from the Dakotas down the middle of the country to Texas showed the sharpest drop in personal income between 2005 and 2006, according to recently-released data prepared by the Bureau of Economic Analysis.
The BEA reported that personal income declined in 2006 in 227 counties. In all but five of these counties, farming accounted for the entire decline in income. And, 194 of the 227 counties with declining incomes (85 percent) were rural.
(In the BEA's calculation, personal income is a comprehensive measure of the income of all persons from all sources. It includes wages, salaries, employer-provided health insurance, dividends and interest income, social security benefits, and other types of income, including farm subsidy or disaster payments. Also, in this study, "rural" counties are defined as those that are "non metro" counties according to the U.S. Census.)
In metro areas, the average personal income was $38,564, compared to $27,403 in nonmetro areas. For the third straight year, nonmetro income fell as a percent of metro personal income. In 2006, nonmetro personal income was just 74.6 percent of the U.S. average. This is down from 75.1 percent in 2005; 75.8 percent in 2004, and 76.1 percent in 2003.
The five counties with the largest declines in personal income were Campbell, Zieback and Hyde counties in South Dakota; Slope County, North Dakota; and Lynn County, in Texas. All are sparsely populated counties of the Great Plains.
To see the fifty rural (non-metro) counties with the largest percentage declines in income between 2005 and 2006, click here.
To see the fifty rural counties with the largest percentage increases in income, click here.
To see the fifty rural counties with the lowest personal incomes in 2006, click here.
To see the fifty rural counties with the highest personal incomes in 2006, click here.