Letter from the Executive Director

By Jerry Schmitz, Executive Director of SDSA and SDSRPC

2022 has been a year of challenges and contradictions for South Dakota farm and ranch families. Many have experienced hardship and need support, but there is a bright horizon before us. If there is a lesson to be learned, I believe it is that character, courage, compassion and patience are forged in the fire of adversity. What moves us all forward is working together for everyone’s benefit with a willingness for everyone to share life’s good fortune and goodwill as well as burdens and difficulties.

A large number of farm families experienced significant storm damage early this spring. Due to the rapid inflation of the cost of goods and services, many families were underinsured, leaving them with huge clean-up and replacement costs for buildings and equipment that took years, in some cases generations, to accumulate. Neighbors helped neighbors, and volunteers from towns came out to help clean up and gather up what had been damaged and destroyed. Having neighbors and friends by their side helped the victims of nature overcome the mental hurdles of accepting what has been lost and fostered hope in rebuilding for the future.

While the storms brought great winds, they did not bring much moisture. Drought throughout the year severely harmed production for many. The contradiction, ironically, is there are farmers that experienced the best crops they have ever produced. In some instances, the distance between low-producing fields and high-producing fields was only a mile.

Another challenge in 2022 was the continued labor and transportation obstacles that resulted in shortages of goods. Many of us expected that the supply chain issues created by COVID would be resolved by now, yet some equipment, parts and supplies remain difficult to obtain. It seems hard to believe that in the United States of America, we cannot be confident that a product we desire will be readily available.

Even during adversity, there are many good things happening. Demand for soybeans (particularly demand for soybean oil) has been high, which helps to drive price. That demand is not by accident. Your soybean checkoff dollars invested in research, development and promotion have helped to create that demand. New feed products, new fuels, tires, road preservatives, insulation, turf, the list exceeds one thousand uses. They all use and create demand for soybeans. The South Dakota Soybean Research and Promotion Council is continuously looking for ways to increase your bottom line with soybeans.

Other drivers of demand include the soybean crush plant proposed by South Dakota Soybean Processors. The $500 million plant will be able to process thirty-five million bushels of soybeans annually. Basis levels should improve for farmers selling soybeans. In addition, soybean meal feed costs for area livestock producers should go down due to lower transportation costs from the crusher to the farm.

The new pork processing plant proposed by Wholestone is also a $500 million investment in the future of South Dakota. The plant will be able to process 3 million hogs annually per 8-hour shift. Wholestone is owned by approximately 200 farmers, of which 75 are within 50 miles of Sioux Falls. Wholestone plans to spend $50 million on state-of-the-art equipment to scrub air and water leaving the plant. The plant will provide much-needed processing capacity and a steady supply of pork for the Sioux Falls community.

While we are experiencing challenges, our future is very bright as long as everyone works in unison for the benefit of all.

JERRY SCHMITZ Executive Director of SDSA and SDSRPC