By John Thune
There’s hardly a corner of South Dakota where you won’t find a farm, ranch, or some other trace of our rich agricultural heritage – it’s the lifeblood of our state. Representing the hardworking South Dakotans who grow food and fuel and raise livestock is a responsibility I take seriously. So I value the conversations I have with producers as I travel around the state.
Unfortunately, what I’m hearing from farmers and ranchers lately is not good. Higher input costs, higher interest rates, and lower commodity prices are a dangerous combination for farms and ranches. Add to that the natural disasters and droughts that have impacted agriculture around the country, including in South Dakota, and it’s clear the situation is dire.
The U.S. Department of Agriculture projects net farm income will decrease 4 percent this year, after a 19 percent drop last year. Over the last two years row crop producers have lost $50 billion, and projections for next year are not any better. Behind these numbers are the individual farms and ranches and the families who run them seeing red ink and wondering if their operation can weather the worst.