A 44 percent growth in farm income between the second and third quarters of 2015 put South Dakota on top nationally for personal income growth, according to a U.S. Bureau of Economic Analysis news release.
"Farm earnings grew 17.5 percent (nationwide) in the third quarter after falling 4.5 percent in the second. The increase in farm earnings exceeded 25 percent in six of the seven states in the Plains Region (Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota) and contributed the most to their personal income growth. Third-quarter farm earnings primarily reflected lower production expenses, including lower fuel and livestock costs."
Overall, the Rushmore state's income grew 2.2 percent quarter-over-quarter, making it No. 1 for growth in that timeframe. That provides a rebound after South Dakota's personal income shrunk 2.7 percent between the fourth quarter of 2014 and the first quarter of 2015, then grew 1.4 percent into the second quarter of 2015.
Now at No. 1, South Dakota was followed closely by neighbors Nebraska, at No. 2, and Iowa, at No. 3. Other neighbors ranked No. 11 - Minnesota; No. 16 -- Montana; No. 44 -- Wyoming, and No. 48 -- North Dakota.
Both Wyoming and North Dakota have been hit by continued contraction in the oil industry, and income from their mining industries have shrunk. In South Dakota, mining income fell 0.6 percent between Q2 and Q3 2016. Nationally, earnings fell 1.9 percent in mining in the third quarter, after falling 5.5 percent in the second quarter and 0.6 percent in the first quarter of 2015.
Despite the slow-down in the energy sector, personal income grew in every state between Q2 and Q3 2015, with an average growth of 1.3 percent among the 50 states. Alaska experienced the least amount of growth, at 0.6 percent.
Nationally, nonfarm earnings grew 1.3 percent in both the second and third quarters. of 2015 The largest percentage increases in the third quarter were in Arizona and Oregon where nonfarm earnings grew 1.6 percent. A non-farm breakout for South Dakota was not provided.
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