As the dawn of 2026 breaks, South Dakota’s agricultural heartland finds itself teetering on the edge of economic uncertainty. Unprofitable harvests and escalating input costs, driven by inflation and trade wars, cast a long shadow over the state’s proud farming communities. Notably, the soybean and corn sector faces severe challenges, with many farmers witnessing their profits dwindle.
Kevin Deinert, a dedicated fifth-generation farmer near Mitchell, South Dakota, embodies the grit and determination of his peers. As he works the land his great-great-grandfather cultivated, Deinert balances the weight of maintaining a family legacy against the stark economic realities of modern farming.
Mitchell, renowned for its farming heritage, stands as a critical pivot point in South Dakota’s agricultural landscape. Deinert’s farm, like many others, contends with the financial strain exacerbated by high equipment and fertilizer costs, inflamed by tariffs and inflation.
“I’ve got sons who might be the sixth generation to take over,” Deinert reflects, emphasizing the importance of family tradition. Yet, the reality of the slumped soybean market, compounded by halted trade with China, clouds any optimistic vision. “We haven’t seen anything in writing,” he says, referring to negotiations intended to revive Chinese soybean purchases.
The state of South Dakota, anchored in its agricultural roots, overwhelmingly supported President Trump in the 2024 elections, despite the negative impacts of his trade policies. The introduction of a $12 billion aid package brought some solace to farmers, marketed as a “bridge payment” to facilitate ongoing trade negotiations. However, the sentiment among farmers remains one of skepticism, as voiced by South Dakota Farmers Union president, Doug Sombke.
“It’s like trying to put out a fire with a garden hose,” Sombke criticizes. “The tariffs have just compounded issues that harken back to the 1980s’ farm economy crash.” His concerns echo throughout the state, from Aberdeen’s John Kippley, who warns of impending farm sales, to Deinert’s own cautious optimism.
- The White House announced that China agreed to purchase 12 million bushels of soybeans in 2025, with plans to double these numbers next year.
- South Dakota’s state economy, heavily winded by agricultural output, awaits confirmation of such trade agreements with anticipation and doubt.
- John Kippley, a tax advisor residing in Aberdeen, emphasizes the immediate financial strain faced by farmers—a struggle to secure necessary loans amidst speculation and dwindling returns.
Despite the looming challenges, there are bright spots within South Dakota’s expansive plains. Ranchers like Kory Bierle, buoyed by high beef prices, can finally catch a breath after enduring relentless droughts. Bierle’s family, having ranched along the Bad River for over a century, epitomizes resilience and adaptability amid economic flux.
Across South Dakota, the tension between impending crisis and hopeful resilience defines this year’s agricultural narrative. Farmers and ranchers, custodians of the land, lean on their traditions and community bonds, striving to navigate these turbulent times.