Stagnant farm economy slows growth in Iowa, Nebraska

A stagnant farm economy that has slowed Nebraska and Iowa's income growth to the lowest levels in the nation is also contributing to state budget problems that could linger through next year, officials said. Key lawmakers from both states said they're concerned the agricultural downturn will persist, ripping through other sectors and putting additional strain on their budgets.Declining farm income was the leading cause of the slowdown in many states, including Iowa and Nebraska, according to the U.S. Bureau of Economic Analysis. The sluggish growth also hurt agricultural manufacturing, lending, land-rental income and other industries tied to farming, officials said."Our farmers have been hurting, and they've been hurting for some time now," said Nebraska State Tax Commissioner Tony Fulton. "The fact of the matter is it's a big deal in Nebraska."