South Dakota Ag Groups Say Final Pipeline Bills Protect Landowners and Provide Market Access

SIOUX FALLS, SD, March 6, 2024 – The South Dakota Farm Bureau (SDFB), the South Dakota Corn Growers Association (SDCGA) and the South Dakota Soybean Association (SDSA) praise lawmakers for passing pipeline bills that deliver landowner protections and property tax relief to those affected, as well as preserves local zoning.

SDCGA President Dave Ellens stated, “We are pleased that the carbon pipeline project can now continue to move forward, helping to create demand for corn grind in this state, a core mission of our organization. Throughout the legislative process, SDCGA continuously prioritized sending a portion of the estimated $7.2 billion federal tax credit made available by the Inflation Reduction Act for this project back to the landowners affected by the pipeline crossing their property. Frankly, we fought until the end to help ensure that somehow it happened. Our policy recognizes the importance of treating landowners with respect and we did everything we thought possible to show that those words were given meaning.”

A $.50 per linear foot annual property tax credit will go to affected landowners. The county tax credit is tied to a claim of the federal tax credit in 45Q by a pipeline company.

“Our goal has been for South Dakota producers to have market access to value-added opportunities, while protecting property rights on both sides of this issue,” said Scott VanderWal, SDFB president. “We also fought to make sure that affected landowners would be treated fairly and share in profits. Both affected property owners and counties will have an annual amount to apply toward property tax relief or county general funds.

“Farm Bureau also has policy that respects local zoning and the final bill ensures a process-based opportunity for county planning and zoning to be considered during the PUC permitting process,” said VanderWal. “That was a key factor in our ability to support this legislation.”

The SDFBF, SDCGA and SDSA are also pleased to note the provision in the legislative package limiting carbon pipeline easements to 99 years. All three organizations’ policy generally disfavors perpetual easements.

“South Dakotans have always been innovative in developing opportunities for future generations. Ethanol production and soy crush plants are perfect examples of investing in the future. This is the next step to the future. SDSA is engaged to ensure that the best interest of property owners and communities is met,” said Kevin Deinert, President of the South Dakota Soybean Association.

About South Dakota Corn Growers Association: Farmer Led and South Dakota Focused

South Dakota corn producers formed the SDCGA membership organization in 1986 to serve as a collective voice on issues at the state and national levels. The state is divided into nine districts for representation. SDCGA board of directors are elected by fellow South Dakota corn producers from their respective districts. SDCGA meets annually to pass resolutions and hold board elections.

About South Dakota Farm Bureau

South Dakota Farm Bureau (SDFB) is a grassroots membership organization established in 1917 when the first county Farm Bureaus banded together to create the state organization and today represents more than 13,000 farm, ranch and rural families.

About South Dakota Soybean

Founded in 1982, the South Dakota Soybean Association (SDSA) is a grassroots, farmer-led organization. Because the soybean checkoff is prohibited by law from lobbying, SDSA works to ensure that sound policies are in place to enhance the future of soybean farming. We work on behalf of our members to positively impact regulatory and legislative issues on a local, state and national level.