I have been asked what the potential economic impact could be if the newly proposed soil tables are implemented, and ranchers see a significant increase in their taxes. I have spoken to many ranchers across the state and have personal testimonies stating that if the new soil tables are implemented, and their land that has always been assessed as grassland is reassessed as cropland, they would be at the point where their taxes would exceed the income generated by their ranch and could risk losing their ranches and homes.

If ranchers are forced out of business, the financial impact to our cities, towns, and rural communities could be significant. The ranchers who currently buy locally; machinery, equipment, trucks, fuel, feed, veterinarian services, etc., would no longer have the need for those goods and services. Our local economies would dramatically be impacted if that occurs.

This is not a hypothetical scenario. My husband grew up on a farm in Eureka, South Dakota. With the farmers came prosperity and it was a thriving community. In the early 1900’s Eureka was known as the wheat capitol of the world! Slowly, but surely over the years, small farms and ranches sold to larger local landowners and eventually many sold to corporate conglomerates who didn’t live locally or buy goods from local businesses. Today, if you drive through Eureka, there is only a remanent left. They have one small locally owned grocery store, one café/bar that is open a couple days a week and one small (card only) gas station. They have gone from a thriving, prosperous town that could field a high school football team to a largely retired community with a high school graduating class of 5.

Even with the drought and low market prices, our ranchers continue to raise their animals for market even though many are just breaking even or paying out of their own pockets when all is said and done. This illustrates to us exactly who the ranchers are! And that is exactly why Senator Castleberry and I are introducing Draft Bill 50 during the 2022 Legislative Session. We have been told that the beauty of this bill is in its simplicity. It does not supplant or replace any existing laws currently in place. This bill simply provides an additional avenue with which ranchers and growers may apply to designate their land as non-cropland, if their land meets the criteria stated in the bill. The bill states that, "Agricultural land may also be categorized as non-crop land, regardless of the soil classification of the land. If the elevation of the land is greater than one thousand nine hundred and fifty feet above sea level, it has been seeded to perennial vegetation for at least 20 years and used for animal grazing or left un-harvested, or if the agricultural land is native grassland.”

In the latest edition of the South Dakota Stock Growers Association magazine, Jeremiah Murphy, Lobbyist for the SD Stock Growers Association recalls testimony to the Tax Committee by Michael Kenyon from the Department of Revenue after the Noem-Peterson Grassland Bill HB1202 was tabled in 2010. He stated that, “This is a significant problem. It is a serious problem.” Kenyon also predicted that, “If the tools aren’t adequate to fix the problem, the bill would be back in a few years.” Well, here we are approaching the 2022 legislative session, twelve legislative years later, and the issue remains unresolved.  

This is our chance to stand up as fellow citizens and help champion the rancher’s cause. All of the ranchers I have spoken with are more than willing to pay their taxes .... they just want them to be fair and equitable. I believe that fairness is worth pursuing. If we join together, we can make a difference!! Email your legislator and ask them to support this important piece of legislation. Drop by your local county assessor’s office and sign the petition supporting tax reform in South Dakota and Draft Bill 50. This is South Dakota and your voice and you vote still matters!