Western South Dakota's Only Ranch Station

A $.25 lunch highlights disparities between commodity prices, wholesale and consumer prices

The Boos family of Mitchell, SD, Harper, Michelle and David, are among the more than 1,000 fairgoers served during the Farmers Share lunch hosted by S.D. Farmers Union today during the South Dakota State Fair.

HURON, SD – During the South Dakota State Fair Saturday, more than 1,000 fairgoers enjoyed lunch for only $.25.

“It’s the price ranchers and farmers get paid to raise the milk, crops and livestock that make up this meal,” explained Karla Hofhenke, executive director for South Dakota Farmers Union.

Helping consumers understand the large difference between grocery store food prices and what family ranchers and farmers receive, is the purpose behind the Farmers Share lunch. For more than two decades, South Dakota Farmers Union has hosted the meal during Farmers Union Day at the State Fair.

“It doesn’t surprise me. I don’t think it’s right, but it doesn’t surprise me,” says Erin Menkhaus of the $.25 price that ranchers andd farmers receive for the ingredients that went into today’s meal. “It seems the people who manufacture the products — food or otherwise — are not the ones who receive the largest

The Menkhaus family attended the Farmers Share Lunch during the South Dakota State Fair. Photo SDFU

share of the profit. The larger share of the profit goes to those who distribute it.”

Menkhaus grew up on a farm near Winfred; she is at the State Fair today with her husband, Todd, and their children.

“State fair draws people from every aspect of life. Producers and consumers are here. So, this lunch is also a good way to bring producers and consumers together, under one tent to share a meal together,” says Wessington Springs cattle producer and Farmers Union member, Scott Kolousek.

Scott Kolousek and his wife, Amber raise their children on the same Wessington Springs farm where Scott grew up. As the fifth generation in his family to continue the farming tradition, Scott says they hope one day to pass the care of their land and livestock onto their kids.

But before that happens, the Kolouseks hope to see changes in how the cattle and crop markets operate.

“The prices have been pretty ugly the last four years,” Scott explains.

What does ugly mean exactly? With a break even cost of more than $1,000 to feed a cow and raise her calf to 750 pounds, prices in winter 2020 translated to losing about $100 per head on each 750-pound calf they sold.

Sadly, most South Dakota ranchers and farmers have a similar story to share. Earning a profit in South Dakota’s number one industry is not easy because farmers and ranchers have very little control over what they get paid, Kolousek explains.

“Others dictate what you get paid,” Kolousek said, explaining that as a cattle producer, markets are limited because nationwide there are only four major beef packers. And it seems to many that because current oversight laws are not enforced, market manipulation is occurring.

Lobbying for solutions to create more fair and transparent cattle markets is among the reasons the Kolouseks became actively involved in Farmers Union.

“It comes down to the grassroots nature of Farmers Union. As a rancher or farmer, I can get my exact opinion heard at state policy meeting, then my concerns are taken on to the state and national level. Other organizations tell you what they believe in. Their policy comes from the top down. Farmers Union takes what the ranchers of South Dakota want and that is what their policy becomes. We are the only ag organization who is still pushing for Country of Origin Labeling (COOL).”

In 2018, Scott and Amber traveled with South Dakota Farmers Union to Washington D.C. as part of the National Fly-In. They spent time visiting with congressional leaders about the challenges they face and policy changes that could be made to help family ranchers and farmers receive a fair price for what they produce.

A premiere sponsor of the South Dakota State Fair, for more than a century, South Dakota Farmers Union has worked to support South Dakota’s family ranchers, farmers and their rural communities through grassroots policy development, education and cooperatives.

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