2024 Co-op Month Proclamation
Celebrated by cooperatives nationwide during the month of October, National Co-op Month is an annual opportunity to raise awareness of a trusted, proven way to do business and build resilient, inclusive communities.
Governor Kristi Noem has proclaimed October as Cooperative Month in South Dakota. The proclamation recognizes the history and impact of co-ops in our state, include farm supply and marketing, electric, and communications cooperatives, as well as farm credit services and credit unions. The proclamation also highlights the fact that South Dakota cooperatives contribute nearly $4 billion in annual gross domestic product and contribute nearly 79,000 jobs in our state.
Economic Impact of Cooperatives in South Dakota
Executive Summary
Cooperatives play a significant role in South Dakota's economic activity. This report estimates the economic impact of cooperatives in the South Dakota in 2022. The report's estimates are based on an input-output analysis from a survey of cooperatives operating in South Dakota conducted in June of 2023.
The survey targeted 79 cooperatives that operate in South Dakota. The cooperatives targeted in the survey primarily conducted economic activities supporting agriculture (41%), grain wholesaling (6%), and electric generation and distribution (48%). Of the 79 cooperatives contacted, 26 cooperatives (33% response rate) provided information on the amount of payroll, sales, percent of sales in South Dakota, and sources of sales by the economic activity in 2022 that could be used to estimate the economic impact of cooperatives. While the number of firms (26) in our survey sample was relatively small compared to the total population of cooperatives (141), the cooperatives that responded were typically the larger cooperatives in the state. For example, the survey sample reported total sales of nearly 1.5 billion dollars and over 130 million dollars in salaries in South Dakota in 2022.
The results of the input-output analysis show that the cooperatives in our survey sample are estimated to contribute to 24,831 jobs, $919 million in worker salaries, $1.3 billion to Gross Domestic Product (GDP), and $2.2 billion in produced goods and services through direct, indirect, and induced economic effects. In addition, the economic activity of the cooperatives in our sample contributes approximately $105 million, $122 million, and $334 million in county, state, and federal tax dollars, respectively. The survey sample of cooperative economic activity represents approximately 4.1% of the jobs, 3.6% of the salaries, 2.1% of GDP, and 1.8% of the output in South Dakota in 2022.
Using the survey sample economic activities, we were able to estimate all cooperative economic activity (141 cooperatives) in the state. The economic activity of all cooperatives in South Dakota is estimated to contribute to 78,505 jobs, $2.8 billion in worker salaries, $3.9 billion in GDP, and $6.3 billion in total product output through direct, indirect, and induced effects. In addition, the economic activity of the cooperatives pays approximately $300 million, $388 million, and $993 million in county, state, and federal tax dollars, respectively. Thus, cooperatives in South Dakota are estimated to contribute approximately 12.9% of the jobs, 11.3% of the salaries, 6.2% of the GDP, and 5.2% of the output in South Dakota in 2022.
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