NEWELL, S.D. – South Dakota’s agricultural industry, vital both to the state economy and its rural communities, currently faces sharp contrasts. On one hand, ranchers west of the Missouri River are basking in record prices for sheep and cattle. On the other hand, row crop farmers east of the river, particularly those growing soybeans and corn, are teetering on the brink of potential financial crises.
President Donald Trump’s trade policies, which include tariffs on Chinese goods, have thrown a wrench into the works for soybean and corn farmers in the eastern regions of the state. The lack of demand from China, which previously bought about 30% of the state’s soybeans, has driven prices to unsustainable lows.
Scott VanderWal, president of the South Dakota Farm Bureau Federation, expressed his concerns: “When you look at crop markets like corn and soybeans and wheat, they’re all just dead. They’re all in a loss position.”
Scott VanderWal
The agricultural sector in South Dakota is quintessentially representative of the nation’s farming backbone, marked by a mix of triumphs and tribulations. This year, the sector has drawn increased attention as the trade war impacts ripple across state borders.
U.S. Senator Mike Rounds of South Dakota acknowledged the hardships: “The American producer is the tip of the spear in these trade battles,” he said during a recent agricultural meeting in Pierre. He further commented on potential relief measures, suggesting that tariffs could potentially create new federal revenues to offset losses by American farmers.
Mike Rounds
Despite the challenges faced by crop farmers, South Dakota’s livestock producers have thrived in this scenario. With reduced competition from foreign markets due to tariffs on imports, local beef and lamb producers are enjoying some of the highest prices in history.
Jack Orwick, a rancher in Butte County, expressed excitement over record-high sales of cattle and sheep, revealing he recently sold open heifers at unprecedented prices of $3,100 each. “That’s just nuts, record high prices, and nobody’s ever seen anything like it,” he said. “Even the lamb market is strong, and it’s predicted to hold steady into fall.”
While the agricultural fate of the state appears fragmented, some sectors remain stable, such as the pork, dairy, and turkey industries. Abbey Riemenschneider, spokeswoman for the South Dakota Pork Producer Council, asserted that pork producers are maintaining profitability despite tariff concerns. Dairy operators also find solace in high demand for milk and cheese, boosted by recent increases in processing capacities within the state.
As the agricultural community braces for the uncertain future, efforts are underway to establish alternative markets. This year, delegations from countries like Nepal and Sri Lanka have shown interest in South Dakota’s soybean products, but challenges remain in developing those partnerships rapidly enough to fill the gap left by China.
To cope with this unprecedented volatility, many South Dakotan farmers are looking to future trade deals to stabilize markets and open new opportunities. Jerry Schmitz, executive director of the South Dakota Soybean Association, highlighted the urgent need for new avenues: “We’re making agreements that make things more fair for workers in places like Detroit or Chicago, but that’s being done at the expense of small family farms that are producing soybeans.”
With South Dakota playing such a crucial role in the nation’s agricultural landscape, the stakes remain high. Scott VanderWal expressed cautious optimism that the state’s farmers would weather the storm and emerge stronger, thanks to potential policy shifts that could ensure long-term market stability.