Center for Agriculture and the Economy

Leveraging expertise from the Kansas City Fed, the Center provides timely analysis of industry developments and conducts ongoing research on the agricultural economy.

Fourth Quarter Ag Bulletin

Conditions in the U.S. farm economy were uneven during 2025.

US Agriculture | Crop and Livestock Sectors

Mass Layoffs Can Disproportionately Disrupt Small Communities

The recent closure of a meatpacking plant in Lexington, Nebraska, raises questions about how mass layoffs affect nearby...

Rural | Economic Bulletin | Labor and Demographics

Farmland Values Remain Firm Despite Deterioration in Farm Finances

Despite gradual deterioration in farm financial conditions over the past year, agricultural real estate values in the Tenth...

Agricultural Credit Survey | Regional Agriculture

Mass layoff events occur less frequently in rural areas but tend to have a larger impact.

February 25, 2026
By John McCoy

A recent meatpacking plant closure in Lexington, Nebraska has highlighted the severe, negative consequences of large employment disruptions on small communities. A recent Economic Bulletin provides an overview of these expected consequences with a particular focus on Lexington. Existing literature suggests that smaller, more economically concentrated communities might face larger negative consequences than larger, more economically diversified areas. As the charts below show, mass layoffs have occurred less frequently in rural areas but those occurrences, on average, tend to affect a much larger share of the local labor force.

Left Chart - WARN Notices (thousands): A line graph showing WARN notices from 2000 to 2025, comparing urban (blue line) and rural (purple line) areas.   Right Chart - Layoff as share of county's labor force, average: A line graph displaying layoffs as a percentage of the county's labor force from 2000 to 2025, comparing urban (blue line) and rural (purple line) areas.

Mass Layoff Events Announced through WARN Notices Since 2000

Note: right hand chart includes only those WARN notices impacting at least 100 workers where the location of the layoff is in a single location and where the location is easily identifiable. On average, about 16% of notices per year affect multiple locations or do not have easily accessible geographic information. The WARN Act requires employers with at least 100 employees to provide advance notice of employment disruptions under External Linkcertain criteria.
Sources: warntracker.com and Federal Reserve Bank of Kansas City staff calculations

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