Will Lots Of South Dakota Family Farmers Go Under This Year?

With Diesel Fuel and crop fertilizer prices, will South Dakota family farmers go under this year?

Today's cost of living is at an all-time high and things are tough on the family farm.

South Dakota’s family farmers are bracing for one of their toughest growing seasons in years as diesel fuel and fertilizer prices continue to surge.

Global supply chain disruptions, conflict in the Middle East, and trade tensions have driven production costs to record highs.

Urea fertilizer now tops $670 per ton, with anhydrous ammonia averaging nearly $925.

Nitrogen-based fertilizers, which depend heavily on natural gas, have climbed in tandem with energy markets, while phosphate and potash remain elevated due to unstable international supply chains.

A recent American Farm Bureau survey found nearly 70% of U.S. farmers can’t afford to buy the fertilizer they need, and many South Dakotans report cutting back applications to save costs.

This will likely lead to lower yields and shrinking profits.

Diesel prices have also risen sharply, further squeezing margins for operations that rely on heavy equipment, irrigation, and grain hauling.

The average price of Diesel fuel in the U.S. is $5.64 a gallon.

Meanwhile, low commodity prices, partly the result of weakened export markets and trade restrictions, are compounding the financial stress.

Farmers across eastern South Dakota already face tight profit margins after years of volatility in corn and soybean prices.

For small, family-owned farms with limited capital, these challenges could prove devastating.