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Pork industry provides boost to South Dakota economy

South Dakota State University Extension
In South Dakota, over 4 million hogs are fed to finishing in the state annually, consuming 30.6 million bushels of corn and 214,000 tons of soybean meal. Pigs are the number one consumer of South Dakota corn and soybeans.
Courtesy photo |

At a time when budget shortfalls are making headlines across the state, the South Dakota pork industry believes it can play a key role in spurring future economic development.

“The pork industry in South Dakota makes a significant contribution to the state’s economy, and there’s a real opportunity to expand the industry and that economic impact within the state,” said Glenn Muller, executive director of the South Dakota Pork Producers Council.

In support of that, Muller cites a recent economic impact study of the state’s pork industry by South Dakota State University (SDSU) economics associate professor Gary Taylor which revealed that there were 339,000 sows farrowed in South Dakota in 2008 producing a pig crop of 3,297,000 head. With an additional 951,000 hogs imported into the state in 2008, the gross income from the industry totaled over $3.9 million.



Using a multiplier for the pork industry of 1.32, Taylor explained that the 339,000 sows in the state contribute about $1,534 in economic activity per sow to the economy. And, given that pork prices have risen significantly (45 percent) since 2008, Taylor clarified that the economic impact to the state is much greater today.

Moreover, the economic impact study identified that South Dakota’s pork industry currently directly generates 4,371 jobs in the state, produces $17.4 million in total tax revenue, and serves as the number one customer for the corn and soybeans produced in the state.



Additionally, the state’s meat processing sector sees nearly $1.7 billion in output, 3,547 in jobs and $2 million in indirect business taxes as a result of the South Dakota pork industry.

At a time when budget shortfalls are making headlines across the state, the South Dakota pork industry believes it can play a key role in spurring future economic development.

“The pork industry in South Dakota makes a significant contribution to the state’s economy, and there’s a real opportunity to expand the industry and that economic impact within the state,” said Glenn Muller, executive director of the South Dakota Pork Producers Council.

In support of that, Muller cites a recent economic impact study of the state’s pork industry by South Dakota State University (SDSU) economics associate professor Gary Taylor which revealed that there were 339,000 sows farrowed in South Dakota in 2008 producing a pig crop of 3,297,000 head. With an additional 951,000 hogs imported into the state in 2008, the gross income from the industry totaled over $3.9 million.

Using a multiplier for the pork industry of 1.32, Taylor explained that the 339,000 sows in the state contribute about $1,534 in economic activity per sow to the economy. And, given that pork prices have risen significantly (45 percent) since 2008, Taylor clarified that the economic impact to the state is much greater today.

Moreover, the economic impact study identified that South Dakota’s pork industry currently directly generates 4,371 jobs in the state, produces $17.4 million in total tax revenue, and serves as the number one customer for the corn and soybeans produced in the state.

Additionally, the state’s meat processing sector sees nearly $1.7 billion in output, 3,547 in jobs and $2 million in indirect business taxes as a result of the South Dakota pork industry.

At a time when budget shortfalls are making headlines across the state, the South Dakota pork industry believes it can play a key role in spurring future economic development.

“The pork industry in South Dakota makes a significant contribution to the state’s economy, and there’s a real opportunity to expand the industry and that economic impact within the state,” said Glenn Muller, executive director of the South Dakota Pork Producers Council.

In support of that, Muller cites a recent economic impact study of the state’s pork industry by South Dakota State University (SDSU) economics associate professor Gary Taylor which revealed that there were 339,000 sows farrowed in South Dakota in 2008 producing a pig crop of 3,297,000 head. With an additional 951,000 hogs imported into the state in 2008, the gross income from the industry totaled over $3.9 million.

Using a multiplier for the pork industry of 1.32, Taylor explained that the 339,000 sows in the state contribute about $1,534 in economic activity per sow to the economy. And, given that pork prices have risen significantly (45 percent) since 2008, Taylor clarified that the economic impact to the state is much greater today.

Moreover, the economic impact study identified that South Dakota’s pork industry currently directly generates 4,371 jobs in the state, produces $17.4 million in total tax revenue, and serves as the number one customer for the corn and soybeans produced in the state.

Additionally, the state’s meat processing sector sees nearly $1.7 billion in output, 3,547 in jobs and $2 million in indirect business taxes as a result of the South Dakota pork industry.

editor’s note: through the south dakota pork producers council and their “operation main street” program, producers and staff are available to visit with communities about modern swine production and the opportunities it offers. the south dakota department of agriculture and ag united are also available to assist in providing fact-based information about agriculture to communities. for more information visit their web sites at: http://www.sdppc.org, http://www.agunited.com, and http://sdda.sd.gov.

A “win-win” opportunity is how many ag industry leaders describe the future growth potential of the state’s farrow and finishing operations as they relate to the state’s existing corn and soybean farms.

Current estimates indicate that the state’s sow herd consumes 10.3 million bushels of corn and 61 thousand tons of soybean meal annually, while the finishing pigs consume an additional 30.6 million bushels of corn and 214,000 tons of soybean meal – making pigs the number one customer of South Dakota corn and soybeans.

“The potential to grow our pork industry in South Dakota is great. We have ample feed with corn and dried distiller’s grain here, and we have the packing plant here. Anytime you add value to our feed grains through livestock you increase the economic input for South Dakota and grow our largest industry – agriculture,” said Lisa Richardson, executive director for SD Corn, which encompasses the South Dakota Corn Grower’s Association and the South Dakota Corn Utilization Council.

Jeremy Freking, executive director of the South Dakota Soybean Association and South Dakota Soybean Research and Promotion Council, added, “Soybean farmers and pork producers benefit from one another. It’s time for value added agriculture to expand by raising more hogs in South Dakota where the soybean meal can be utilized within the state to grow our ag economy.”

Likewise, Steve Dick, executive director of Ag United, emphasized the valuable opportunity to utilize manure from hog facilities as fertilizer on cropland also exists. Dick said a past study put a $30,000 fertilizer value on hog manure from a 2,400-head finishing facility – with increasing fertilizer prices that value is increasing as well. University of Minnesota research has also shown that hog manure can produce better yields – in the study, it resulted in 3-5 more bushels per acre of corn and 2-3 bushels per acre of soybeans compared against commercial fertilizer.

But perhaps most notably, adding a swine entity to an existing South Dakota grain farm may provide the opportunity for the next generation to return to the family operation.

Dick explained, “Today, it’s next to impossible to bring another family into the farming operation without adding 500 to 1,000 acres to generate more revenue. And, with rising farmland prices and rising cash rent prices, which are about $250 per acre in eastern South Dakota, that’s expensive – if not impossible.”

As an alternative, Dick said, “Putting up a 2,400-head finishing hog barn to generate added income and have the benefits of the nutrients from hog manure for the cropland makes sense. In certain areas it has the potential to work and be a boon for rural communities.”

• Agriculture is the number one industry in South Dakota, generating $21 billion and employing more than 143,000 South Dakotans.

• South Dakota ranks 9th nationally in the number of pigs born in the state (approximately 3.3 million head).

• South Dakota ranks 11th nationally in the total number of hogs in the state (approximately 4.2 million head)

• South Dakota counties with the most hogs – 150,000 head and up – are 1. Hutchinson, 2. Douglas, 3. Clark, 4. Charles Mix, 5. Minnehaha.

• In regard to total cash receipts in South Dakota, swine is the second largest livestock species behind beef cattle.

Source: National Ag Statistics Service


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