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Ag Production Triples Value in 20 Years; Land Costs up 6x; Farmers Getting Old

Sometimes I think Bob Mercer’s reports are the only part of KELO-TV’s website worth reading.

KELO’s Capitol Bureau catches a new report from the South Dakota Department of Agriculture and compares it to the 2014 version of that same report to learn that, while agricultural production in South Dakota has tripled since 1997, production has slid 4.4% since the peak in crop prices earlier this decade:

Total production in 2017 from farms and ranches was approximately $9,721,522,000. That was down from $10,170,227,000 in 2012. In the preceding decade, production value had essentially doubled, from $3,664,129,000 in 1997 to $6,570,450,000 in 2007.

The value of various crops — grains, oilseeds, dry beans and dry peas — was $5,166,557,000 in 2017, down from $6,072,922,000 in 2012, but up from $3,383,497,000 in 2007 [Bob Mercer, “Five-Year Farm Reports Show Ag’s Impacts in South Dakota,” KELO-TV, 2019.08.01].

Luckily, edible critters are still producing more wealth:

But the total value of livestock, poultry and related products rose. They reached $4,554,966,000 in 2017. That was up from $3,186,953,000 in 2012 and $2,258,715,000 in 2007 [Mercer, 2019.08.01].

The SDDA report provides some demographics that say that, if we want South Dakota agriculture to keep churning out those billions of dollars of products, we’d better find some young farmers to take the wheel:

There are 48,913 total producers in South Dakota. 63% of the principal producers are age 55 and older, with only 1% under age 25, 8% between the ages of 25 and 34, 12% from 35-44, and 17% from 45-54 years. Of the 39,136 principal producers in South Dakota, about 56% of them consider farming their primary occupation, while the other 44% have another job as their primary occupation [Decision Innovation Solutions, “2019 South Dakota Agriculture Economic Contribution Study,” South Dakota Department of Agriculture, July 2019, p. 10].

DIS/SDDA, p. 10.
DIS/SDDA, p. 10.

One of the roadblocks to getting more farmers to bulge up the young end of that curve is the cost of entry. While the cost of machinery has tripled alongside the value of products sold since 1997, the cost of farm land has more than sextupled:

DIS/SDDA, July 2019, p. 10
DIS/SDDA, July 2019, p. 10

I don’t have a quick solution for making land cheaper, but maybe we can get more young people interested in farming with cookies. Down in the smallest third of the value-added pie, behind livestock ($5.8 billion) and crop production ($3.4 billion), we have a wide variety of “Other Agriculture” businesses adding $2.0 billion to our state economy, supporting 22,972 jobs, and writing $1.5 billion checks. And just about 5% of that value comes from cookie and cracker production:

DIS/SDDA p. 21
DIS/SDDA, July 2019, p. 21

$98.4 million of cookies and crackers produced in South Dakota—yum! Those aren’t the only goodies: we’re also apparently churning out $45.5 million in frozen specialties (SDSU Dairy Bar, care to tell us what percentage of that is you?), $17.8 million in nonchocolate confectionary, and, for you viny types, $16.0 million in wine. If slopping hogs isn’t your thing, there are millions to be made in sweeter ag pursuits in South Dakota.

4 Comments

  1. jerry 2019-08-05 21:52

    IMPEACH trump!! Toss rounds to the ditch and put in some folks that understand what end of a bull the crap comes from without stepping in it. Clearly Thune, Rounds and Dirty only know how to be yes men to a pompous crook and liar. IMPEACH the crook or continue to go broke. China ain’t playing and neither will the rest of the world once they decide to find another reserve currency. trumpists you have damned near killed and have wounded America gravely, we will once again need Democrats to save our economy and our livelihoods.

  2. Debbo 2019-08-05 22:12

    Nothing is going to help farmers or encourage younger ones to become involved if Rancid Racist keeps destroying the farm economy specifically and the US economy generally.

    This farm/rural destruction belongs to #MoscowMitch and the GOP, including the SDGOP. Own it boys. You’re responsible for ruining your neighbors and even their emotional breakdowns and suicides.

  3. Clyde 2019-08-06 09:37

    I watched a documentary on EU agriculture not long ago. In the EU 38% of the EU budget goes to agriculture!!!! In this country I don’t think you could find the bit that goes to ag on a pie chart. Course we do subsidize big insurance to insure farmers and keep them producing at near break even.

    The big farmers in the EU are producing at or below break even as well but the subsidy’s keep them doing it. They say they have to subsidize to compete with the US!

    In the EU there appears to be two types of farmer. The mega farmer and the small organic farmer. They are both subsidized on a per hectare basis but organic farmers also get a separate state subsidy. Organic grown food is very popular.

    It appears though that wherever you go the “Cheap food at any Cost” program is in place.

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