News

New eminent domain law gets mixed feedback from SD ag

South Dakota agriculture has mixed reactions to the recent statewide ban of using eminent domain for carbon pipelines.

South Dakota Farmers Union President Doug Sombke says the organization supports the ban and landowners deserve a fair, decent meeting with companies coming into the state.

“To say we have to give into private industry as landowners, I’m sorry, that’s not the case,” says Sombke. “Work with us just like we work with anyone else we’re doing business with. We just want to be treated the same.”

South Dakota Farm Bureau President Scott VanderWal says companies should treat landowners fairly, but putting an absolute in state law sets a precedent in the state and is bad policy.

“We don’t know what the next project will be that comes along in terms of economic development or new markets for our products,” he says. “There might be something above ground that needs to come through or a pipeline for something else, you never know.”

VanderWal says SDFB policy calls for pipeline companies to get voluntary easements for at least two-thirds of a project before eminent domain is used. The organization asked lawmakers for a compromise and he’s disappointed the compromise wasn’t met.

SDFU policy says eminent domain should be reserved for public projects and the organization opposes further expansion of eminent domain for private use or private industry.

Governor Larry Rhoden says the ban doesn’t kill the Summit Carbon Pipeline project. VanderWal says the company will have to go to work and redevelop relationships and he’s concerned if the carbon pipeline isn’t built, a new Gevo sustainable aviation fuel production facility won’t come to South Dakota.

Gevo tells Brownfield “There’s no change in plans at this time and we’re taking a wait-and-see approach. The whole pipeline issue has been a bit bizarre over the amount of misinformation and outside activists.”

South Dakota’s new eminent domain law goes into effect July 1.