RAPID CITY, SD — Ranchers in Western South Dakota are facing a likely increase in livestock ownership inspection fees as the South Dakota Brand Board struggles to keep pace with inflation and fluctuating cattle numbers.

At a meeting in Rapid City on Wednesday, May 13, 2026, board members began the delicate process of deciding just how much the current $1 per head fee should rise. While the South Dakota Legislature recently cleared the way for a cap of $1.65, the board is currently debating a sweet spot between $1.42 and $1.50.

The inspection program, which covers cattle, horses, mules, sheep, and buffalo in 22 western counties, is currently operating at a deficit. To keep the lights on, the board has been subsidizing the program with funds shifted from other departments.

The Breaking Point:

  • $1.42 Fee: According to Director Debbie Trapp, this amount would fail to break even based on current projections.
  • $1.45 Fee: This would provide a modest $37,000 cushion.

“We can get to a break-even today, but tomorrow we’re behind again, presuming inflation and whatever,” noted Board Chair Haven Stuck.

A major challenge for the board is the unpredictable nature of livestock volume. Fiscal year totals have seen a steady decline since a peak in 2022 when collections totaled $1,895.295 to 2025 with collections of $1,580.41

Ranchers won’t see a change overnight. The board agreed to delay a final decision until mid-August to allow for better financial projections. Even after the board picks a number, a rigorous “red tape” phase begins:

  1. Secretary Approval: Department of Agriculture & Natural Resources Secretary Hunter Roberts must sign off.
  2. Public Hearing: The board must hold a formal hearing to gather rancher feedback.
  3. Legislative Oversight: The proposal moves to the Legislative Research Council and the Bureau of Finance and Management.
  4. Rules Review: A six-lawmaker committee must verify the process was followed correctly.
  5. Final Filing: Once filed with the Secretary of State, the fee takes effect after 20 days.

This marks the first time the fee cap has been adjusted since 2008, when it rose from 80 cents to $1. Prior to that, the fee sat at 60 cents.

The move to $1.65 was hard-fought in Pierre, S.D., earlier this year, narrowly securing the required two-thirds majority in both the House and Senate before being signed by Governor Larry Rhoden—himself a Meade County rancher.

Board members remain cautious. Jarrod Johnson of Garretson expressed hesitation about setting a fee before accounting for potential new costs, such as hiring additional livestock-theft investigators.

The board is expected to review a detailed financial report and potential fee structures at their next meeting in August.