South Dakota’s farm economy heads into 2026 under mounting strain as tariffs drive down crop prices while production costs climb. Farmers across the Plains are seeing income fall below breakeven levels, with South Dakota’s corn and soybean producers reporting steep losses. Soybeans, a cornerstone of the state’s $11 billion agriculture industry, have been hit hardest as China sharply reduced purchases in 2025.
Federal aid has provided temporary relief—South Dakota received about $418 million in emergency payments this year, with another $12 billion in national support approved—but economists warn the assistance lags behind the damage. Tariff collections rose to $195 billion in 2025, yet crop losses and farm payments consumed $70–80 billion, echoing earlier trade disputes that shifted global buyers to Brazil and other suppliers.
Producers now face the double burden of lower prices and higher input costs, with tariffs on fertilizer and machinery compounding supply chain pressures. Younger farmers are especially vulnerable, lacking the reserves to weather prolonged volatility. Analysts caution that continued disruption could accelerate consolidation in rural communities and weaken the state’s long-term agricultural capacity.
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