By Scout Nelson
Farm diversification continues to play an important role in helping agricultural operations manage risk and remain profitable during challenging years. In 2026, a South Dakota farm demonstrates how combining different enterprises can help reduce the impact of drought, rising costs, and market uncertainty.
Lewis Bainbridge, a semi-retired farmer from Ethan, South Dakota, has spent decades serving agriculture through leadership roles in both the corn and soybean industries. Today, he remains involved in farming and closely follows conditions affecting the agricultural economy.
This year, Bainbridge noted that advance planning helped reduce financial pressure on the family operation. Fertilizer and diesel fuel purchases were completed last year before recent increases in costs connected to international tensions and shipping concerns. Having major inputs secured early helped protect the farm from sudden price increases.
Weather remains a challenge across parts of South Dakota. Dry conditions damaged the farm’s winter wheat crop, making grain production difficult. Instead of harvesting the wheat for grain, the family converted the crop into forage by baling it for livestock feed.
The farm’s cow-calf operation provided an important advantage during this difficult season. The wheat forage can now be used to support cattle production, helping recover value from a crop that otherwise would have suffered major losses.
““That's been incredible,” Bainbridge marveled, referring to current beef production profitability. “I've never seen cattle prices like they are. So, for our little spot on Earth, we're setting in pretty good shape. You know, many of our neighbors are not. When you don't have the livestock operation, now what are you going to do with your failed winter wheat and, you know, the droughts? And then if you didn't have some of your inputs covered last year, this is going to be a very tough year.”
While diversification does not solve every challenge, Bainbridge believes it creates valuable flexibility. Growing multiple crops and raising livestock provides several income sources and helps farms adapt when one area faces difficulties.
“Long term, though, I would have to give high kudos to being diversified. We have some ground that's not cropable, so we can utilize that for cows and grass,” said Bainbridge. “And raising a number of crops, we have diversification there, so we can usually produce some sort of feed. So yes, the other positive, as I see it, is that it keeps everyone fully employed so three families can eat.”
Photo Credit: getty-images-elhenyo
Categories: South Dakota, Crops, Livestock, Beef Cattle, Dairy Cattle, Weather