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Study finds big wealth gap in rural Iowa counties

Ag/Outdoor, News

September 16th, 2014 by Ric Hanson

AMES, Iowa (AP) – A new study by a sociologist at Iowa State University found three rural Iowa counties were among the top 10 in the nation in growth of income equality over more than a decade.
The gap is less obvious because showy displays of wealth are typically frowned upon in places where agriculture is the main economic driver, but that doesn’t mean it doesn’t exist, sociologist David Peters told The Des Moines Register. Emmet County was fifth on the list, O’Brien was seventh and Worth was ninth in the growth of inequality between 2000 and 2012.

“That’s shocking. It’s really a phenomenal jump,” Peters said. “It’s strongly affected by farm income.” The growth of biofuels and increase in farm commodity prices drove up incomes for some households. Because rural counties have low populations, the wealth gap can grow quickly when a relatively small number of households increase their incomes. There are fewer farmers now and some middle-skill jobs in manufacturing have disappeared, leaving people who don’t farm with fewer options.

Eight of the 10 Iowa counties with the biggest wealth gaps were rural. The other two are home to major universities and low-income students. In Emmet County, the poorest households saw their share of income decrease nearly 27 percent, while the richest saw theirs grow by 17 percent. “Iowa has never had a wealthy class and a poverty class, but we are getting more like the rest of the nation,” Peters said.