South Dakota farmers and ranchers may be heading for some challenging markets. Prices of some crops and livestock are seeing drops in recent weeks.
However, state officials say commodity markets will recover over the long term.
The US Department of Agriculture released a report projecting record harvest numbers this fall. The study shows US farmers producing about 15 billion bushels of corn and more than 4 billion bushels of soybeans. These numbers are huge compared to previous projections. Officials are concerned this will affect the market.
South Dakota Secretary of Agriculture Mike Jaspers says such high yields will likely push market prices down. He says while there are short term problems, things usually tend to even out.
“You know the problem is just having one after another, of high level production you know with consecutive large crops and when it’s nationwide that definitely exacerbates the problem. One thing going back a couple of year to 2012, when much of the region had drought issues going on and things when everyone is down it definitely helps and it kind of gets that bump through the boa-constrictor it kind of gets us swallowed and processed through. And everyone has room again,” says Jaspers.
Jaspers says the market may incentivize producers to store more grain this year. While farmers are facing a potential drop in some crop process . . . ranchers are also seeing a recent drop in the cattle market. Jaspers says despite any short term market trends, agriculture will remain a vital part of the South Dakota economy well into the future.