R`ID CITY, SD (KEVN) – The Central States Fair begins Friday in Rapid City; one of the most important agricultural shows in South Dakota. Many ranchers at the fair reflect on how the country’s economy is affecting their business.
The Rural Mainstreet Economic Index, a study of farm and ranch economies conducted by economists at Creighton University, shows indicators in the farming industry are declining. The composite index fell to 44 for the fifth straight month, pointing to a contracting agricultural economy.
This comes with economic hurdles in trying to maintain a farm or ranch. Farm equipment sales fell last month to their lowest level in two years.
Rural banks are also concerned about the increase in imports from China. They see it as a threat to farming in the Midwest.
Ryan Lamont, a Meade County rancher, said many see the farming economy as good based on market prices, but he says all of these indicators are causing stress.
“I think the markets are a lot better than they used to be, but our input costs are astronomical, so it’s not good, it’s been hard to keep everything going,” Lamont explained.
Although the US government has recently made attempts to bring down inflation, more than half of AG bankers are unconvinced and say they believe the Inflation Reduction Act will increase the federal deficit.
However, these bankers say that given all these negative indicators, they expect loan defaults to come down over the next year.
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