SDSU Extension Publishes Study on Ag Cooperative Impact in SD, ND and MN

Mar 19, 2025

South Dakota State University Extension has published a study on the economic impact of agricultural cooperatives in the Upper Midwest.

The study examines the economic consequences if the Section 199A tax deduction expires. Section 199A provides tax relief to agricultural cooperatives, aiming to boost rural communities. The deduction, introduced as part of the Tax Cuts and Jobs Act of 2017, is scheduled to expire at the end of 2025.

By looking at three years of data, the study determined that the tax relief can lead to substantial economic activity from spending by cooperative members. Matthew Elliott, SDSU Extension Agribusiness Specialist and associate professor in the SDSU Ness School of Management and Economics, said that could be through reinvesting in the business, cutting costs for customers or boosting employee wages.

Elliott and Frayne Olson, a professor and director of the Quentin Burdick Center of Cooperatives at North Dakota State University, surveyed 19 cooperatives across South Dakota, North Dakota and Minnesota. He said this survey focused on just three states to provide accurate data for South Dakotans, North Dakotans and Minnesotans.

Because agriculture is South Dakota’s number one economic driver, the survey helped pinpoint the role that the Section 199A tax deduction plays. The survey found that the cooperatives generated $1.25 billion in economic impact in 2022, $255.4 million of that in South Dakota from dollars reported as 199A.

“A lot of the sales dollars and jobs in our local communities are really dominated by activity at the local cooperative,” he said. “Policies like 199A g allow more dollars to remain in rural areas, which can help stimulate rural economic activity.”

For more information, read the full study, “Evaluating the Economic Consequences of Possible Section 199A(g) Expiration of Agricultural Cooperatives in the Upper Midwest” or contact Matthew Elliott, SDSU Extension Agribusiness Specialist.

Source : sdstate.edu

Video: From Conventional to Regenerative: Will Groeneveld’s Journey Back to the Land

"You realize you've got a pretty finite number of years to do this. If you ever want to try something new, you better do it."

That mindset helped Will Groeneveld take a bold turn on his Alberta grain farm. A lifelong farmer, Will had never heard of regenerative agriculture until 2018, when he attended a seminar by Kevin Elmy that shifted his worldview. What began as curiosity quickly turned into a deep exploration of how biology—not just chemistry—shapes the health of our soils, crops and ecosystems.

In this video, Will candidly reflects on his family’s farming history, how the operation evolved from a traditional mixed farm to grain-only, and how the desire to improve the land pushed him to invite livestock back into the rotation—without owning a single cow.

Today, through creative partnerships and a commitment to the five principles of regenerative agriculture, Will is reintroducing diversity, building soil health and extending living roots in the ground for as much of the year as possible. Whether it’s through intercropping, zero tillage (which he’s practiced since the 1980s) or managing forage for visiting cattle, Will’s approach is a testament to continuous learning and a willingness to challenge old norms.

Will is a participant in the Regenerative Agriculture Lab (RAL), a social innovation process bringing together producers, researchers, retailers and others to co-create a resilient regenerative agriculture system in Alberta. His story highlights both the potential and humility required to farm with nature, not against it.