Drops in grain prices and cattle values drove the average South Dakota farm income down a dramatic 77 percent in 2015, more than $100,000, reports the Mitchell Daily Republic and the Pierre Capital Journal.
The drop to an average farm income of $38,898, the lowest since 2008, comes after a six-year boom where incomes averaged $162,915 and after a robust 2014 when the state's average farm income was $168,361. In 2015, the bottom 20 percent of farm operations operated at losses averaging $172,000, the study found.
An annual study done by Mitchell Technical Institute's South Dakota Center for Farm/Ranch Management released the findings based on a sample of 111 farming operations, averaging 905 acres of crops and 567 acres of pasture for livestock.
The study's authors said the current situation has echos of the 1980s farm crisis but added that farmers are much more solvent now, owning an average of 70 percent of their operations outright. In addition, the double-digit interest rates of 30 years ago are absent today.
Read the full report attached to this post.
Read more about Incomes on the South Dakota Dashboard.