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Senate approves higher permit and application fees for CAFOs, supporters say revenue needed to sustain program
Summary
Lawmakers approved House Bill 10‑21, which raises annual permit fees and establishes a $600 application fee for concentrated animal feeding operations (CAFOs). Sponsors said fees have not kept pace with program costs given growth in permitted operations and animal counts; opponents warned of disproportionate impacts on smaller operations.
The South Dakota Senate on March 3, 2025, approved House Bill 10‑21, revising fees and adding an application charge for concentrated animal feeding operations (CAFOs).
Sponsor Senator Mischemins told the chamber CAFO permit fees have not been raised since the program’s inception in 1997 and currently cover only a small fraction of program costs. He cited growth in the number and scale of operations — from 15 permitted operations decades ago to 436 in February 2023 — and said the Department of Agriculture and Natural Resources needs funding for technology upgrades, permitting, and inspections.
The bill sets annual permit fees based on maximum permitted animal numbers and establishes a $600 application fee for new operations or for permit changes such as expansions or adding land application fields. It also provides one free land‑application addition request per calendar year.
Supporters including agriculture groups were listed on the floor as backing the measure, while opponents — including some individual producers and the South Dakota Stockgrowers Association members cited by Senator Carley — said increases could be burdensome for small operations. Senator Grove relayed a constituent’s view that the fee increase would be used to cover general budget shortfalls rather than program efficiencies.
Senator Davis argued the new structure is more equitable because it charges more on a per‑head basis and will reduce costs for very small operations while increasing fees for larger ones.
On final passage the Senate recorded 23 yeas and 12 nays; the President declared the bill passed.
Clarifying details captured on the floor include the $600 application fee, the fee schedule tied to maximum permitted animal numbers, and the sponsor’s note that current fees pay roughly 5% of program costs. The bill passed by majority vote and proceeds to enrollment.
