The Byways Report: The Scenic Route to Rural Prosperity

Report Foreword

People often think of small towns and rural areas as being the same. But each small town has its origin story, its people and resources that gave it its unique shape, feel and sense of place. When linked along a route – a byway – small towns use what makes them special to enchant visitors and boost prosperity, improving the quality of life for their residents. Tourism is an efficient form of economic development for towns and regions, as it doesn’t require building infrastructure such as schools or hospitals to support new residents.

The Federal Reserve Bank of Kansas City produced “The Byways Report: The Scenic Route to Rural Prosperity” to leverage the centennial of Route 66 in 2026. The historic byway runs across four of the seven states that compose the Tenth Federal Reserve District – Missouri, Kansas, Oklahoma and New Mexico. Oklahoma distinguished itself in its efforts to build rural prosperity along its 432 miles of what John Steinbeck called “the Mother Road,” and we focused our research there.

The report is intended to inform and inspire people who want to start or strengthen their town’s use of route-based tourism for economic development. The research included a literature review, interviews with 31 local and national experts, and a site visit to people in towns across Oklahoma on Route 66. The report takes a storytelling approach to bring their work to life. The report includes best practices, challenges and triumphs that are relevant even as towns and regions differ.

The report outlines ten main themes for those wanting to strengthen or start a byway:

1. Take an appreciative view of what your town has to offer visitors.
2. Think in terms of collaboration, not competition.
3. Don’t try to do it all on your own.
4. Embrace entrepreneurism as an economic strategy.
5. Preserve your past to secure your future.
6. Make space for many stories to be told and for communities to tell their own stories.
7. Create experiences that engage visitors.
8. Pass the torch to the next generation.
9. Encourage the volunteers.
10. Encourage the support of state officials and others by making the case that tourism is economic development.

The mission of the Kansas City Fed is to serve the public to promote economic and financial stability through leadership and performance excellence. Our Community Development team works to promote economic development and public understanding that supports growth in all communities, including those in low- to moderate-income and rural communities.

Rural communities are at the heart of the Kansas City Fed, one of the most rural in the Federal Reserve System. Our boards and advisory councils include leaders from rural communities, economists conduct research and analysis that influences regional decision making, and our community development team conducts outreach in small towns, across rural areas, and on tribal lands.

In 2025, the Kansas City Fed launched the Center for Agriculture and the Economy. The Center curates, houses and distributes timely economic research and data relevant to agriculture industry practitioners and rural communities. It also offers opportunities for industry professionals and community members to connect with Kansas City Fed experts, fostering programs and enhancing knowledge and connections in agriculture and rural communities.