The USDA’s Farm Service Agency designated 18 South Dakota counties as natural disaster areas on Sept. 16, unlocking emergency loan eligibility for agricultural producers recovering from crop and livestock losses across a wide swath of the state.
The breadth of the designation signals widespread agricultural damage in one of the country’s top farming states, the FSA said.
South Dakota is a major producer of corn, soybeans, cattle, and wheat. Emergency loans can cover the replacement of essential farm property, equipment, and livestock lost to the qualifying disaster, according to the FSA.
For South Dakota farmers and ranchers, the designation provides a critical financial lifeline as they assess the scope of losses heading into the fall harvest period. Emergency loans carry favorable terms compared to commercial lending, including below-market interest rates and extended repayment periods.
The FSA did not specify the precise weather event or events that triggered the designation, though South Dakota has experienced severe drought conditions and extreme heat during the summer growing season. The designation covers both primary and contiguous counties, extending eligibility to producers in neighboring areas affected by the same conditions.
Eighteen counties represent a significant portion of South Dakota’s agricultural landscape. The state has 66 counties, meaning more than one-quarter are now designated disaster areas.
For commodity markets and consumers, broad agricultural damage in a major producing state can affect fall production volumes and prices for corn, soybeans, and beef. South Dakota typically ranks among the top 10 states for corn and soybean production.
Affected producers have eight months from the date of designation to apply for emergency loans through their local FSA office, the agency said. Applicants must demonstrate that the disaster caused losses sufficient to qualify for assistance.
The designation was issued alongside separate disaster declarations for other states, suggesting a broad national wave of agricultural weather damage this growing season.