Survey: Agriculture economy continues to fall due to drought, inflation

The 530 Sunday KOTA Territory News
Published: Oct. 21, 2022 at 5:03 PM CDT|Updated: Oct. 23, 2022 at 6:30 PM CDT
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RAPID CITY, S.D. (KOTA) - Data from Creighton University shows that the agricultural economy around the country continues to shrink.

Their monthly Rural Mainstreet Economic Index remains below the growth neutral score of 50, representing the fifth straight month of shrinking farm and ranch economies.

South Dakota’s RMI remains well below the national average at 38.8.

South Dakota Cattleman’s Association president Eric Jennings said that rising fuel and equipment costs due to inflation are putting a strain on the industry.

”The materials that we buy, building materials for fencing or buildings,” Jennings said. “The farmers are being faced with much higher fertilizer costs. So, as you increase all those expenses, it decreases your profit margin even in a year where we’ve seen some positive prices.”

The report also shows that rural bankers are concerned that the U.S. may enter a recession sometime soon.