Home > South Dakota > SD Ag Summit Part 7: Looking ahead in Ag

SD Ag Summit Part 7: Looking ahead in Ag

July 17, 2014
Brent Gloy & John Blanchfield speaking in Deadwood, SD.

Brent Gloy & John Blanchfield speaking in Deadwood, SD.

This is the seventh in a series of posts coming out of the Governors Agricultural Summit in Deadwood, South Dakota. Today will focus on the last session of the Summit, which looked at what is ahead for South Dakota Agriculture. The speakers for this session were:

  • Brent Gloy – Professor of Agricultural Economics, Purdue University
  • John Blanchfield, Senior Vice President of American Bankers Association

I’ve included the video (1:28 hours long) from this event below. I would recommend viewing this session just to see Blanchfield’s history lesson about the farm bill.

The actual takeaways in this session came from Professor Gloy. One thing he said is that if developing countries continue their fast growth then agriculture in the United States will be doing just fine. I think multiple panelist in this summit really highlighted how important the global market is for the agricultural industry in the United States, and more specifically in South Dakota. As countries advance they want more food. It’s as simple as that. The United States has a robust infrastructure (although starting to age), modern farm methods, and quality products. I believe if the government is kept out of the way the farm industry in South Dakota will continue to dominate the state.

Gloy also mentioned that farm land values will be hit hard when The Fed starts raising interest rates. This is inevitable. With record land sale prices in recent years it may come as a shock to some when The Fed forces a market correction. That is one of the main reasons I believe the US should look at getting rid of the The Fed. The Fed is a private bank that has too much direct and indirect control over huge portions of the economy. The upcoming ag land bust will be tied directly to a move by The Fed. Unfortunately I believe the correction caused by The Fed will put many farmers and rancher in a tough financial situation; which in turn will prompt Congress to bail out Ag…  And the cycle will continue…

Finally, Gloy mentioned the rapid growth in China will mean more animal protein sales. This is somewhat related to the agricultural industry doing well because other countries are developing quickly. But this has direct ramifications for South Dakota. As the Chinese market demands more animal protein it will drive the prices of those products up. Much of the land that has been tilled up in recent years will likely be turned into pastureland as the prices for animal protein continue to rise. Smart South Dakota farmers will recognize when this transition period approaches and will capitalize accordingly.

I think the best lesson to take from this session was South Dakota needs to play nice with other countries. It seems lately that many conservative politicians have been deriding other countries to gain political points. These politicians need to be careful. The future of the agricultural industry in South Dakota likely depends on consumers from other countries. It is not a wise move to make enemies of the very people you want to sell goods to.

Categories: South Dakota Tags:
  1. Merlyn Schutterle
    July 17, 2014 at 10:43 am

    There is a price to be paid by continual “growth.” We are consuming natural resources at an unsustainable pace.

    Another price we will be paying is when family farmers get into financial trouble trying to keep up with the modern system and they have to liquidate to corporate businesses.

    • July 17, 2014 at 2:47 pm

      Modern small family farms are already priced out of the market. Right or wrong, the day of the true family farm is almost completely gone.

  1. No trackbacks yet.
Comments are closed.
%d bloggers like this: