South Dakota
A strictly free market would make businesses free to ignore South Dakota | Opinion
South Dakota Republicans could be choosing from a crowded field when they make their choice for governor in the 2026 primary. With as many as five candidates in the race, would-be governors will need to find a way to distinguish themselves from the pack.
The first announced candidate for that race was Speaker of the House Jon Hansen, a Dell Rapids attorney. He declared his candidacy for the Republican nomination in April.
Hansen was the first candidate for governor to come from the new MAGA wing of the South Dakota Republican Party—referred to as “grassroots patriots” in his announcement speech. His campaign platform contains many of the topics his wing of the party has made a priority: cutting government spending, allowing school choice, protecting private property rights, opposing abortion and tightening election laws.
Another topic that Hansen touched on was ending “corporate welfare.” That’s the name he has given to the practice of using taxpayer dollars to boost private business. His example of corporate welfare gone bad was Tru Shrimp. The company was given a $6.5 million loan of state and local funds six years ago to build a facility in Madison. While the company did manage to change its name to Iterro, it has yet to break ground.
“I think it’s just unnecessary government mingling, and it’s risky business, and they’re wasting our taxpayer dollars to do it,” Hansen said in a South Dakota Searchlight story. “It’s the sort of stuff that we want to say ‘no more’ to. Let’s get back to the free market, low tax and low regulation.”
South Dakota got serious about using state dollars to entice and build business in 1987 when Gov. George Mickelson helped to create the Revolving Economic Development and Initiative Fund. Mickelson was able to convince the Legislature to implement a 1% sales tax increase that would sunset once it had raised $40 million for the REDI Fund. Since then the Governor’s Office of Economic Development has made loans and grants worth millions of dollars to new and existing businesses and industries in the state.
Taking state government loans and grants out of the marketplace would certainly be one way Hansen could approach his new role if he were elected governor. That tactic, however, fails to consider the fact that a financial boost from the state is sometimes what it takes to get the free market interested in investing in South Dakota.
Putting an end to low-interest government loans would certainly put the state at a disadvantage when it comes to competing with other states for business and industry.
A recent news release from the GOED showed just how invested the state has become in helping businesses grow. The news release noted a $3.4 million grant for the Big Stone Energy Storage Project thermal energy facility, a $2.6 million grant for a Bel Brands expansion and a $250,682 grant to Dakota Line Energy for a lagoon digester.
The news release said the grants would result in $419 million in capital expenditures and create 180 full-time jobs. In essence, the state is betting $6 million in hopes of getting a $419 million payoff. That kind of “government mingling,” as Hansen called it, seems to offer pretty good odds. It is, however, as he noted, “risky business.”
At its heart, investing in economic development will always be a bit of a gamble. That’s why we expect government officials to place safe bets, though there is always the chance for a bust like Tru Shrimp. That’s the nature of any gamble.
Hansen won’t be the only “patriot” in the Republican primary for governor, with Aberdeen businessman and political influencer Toby Doeden also declaring his candidacy. If “corporate welfare” is going to be an issue in the GOP primary, the people who like to use state loans and grants to boost their local economies have got to do a better job of telling about the benefits of government investment.
One way to do that would be to keep telling their story after the initial news release has been issued. Beyond the cliched photo of local officials with hardhats and shovels for a groundbreaking, taxpayers deserve regular updates on capital expenditures and job creation. This would add a layer of government transparency to the use of tax dollars. It would also soften the criticism from people like Hansen when an outfit like Tru Shrimp is slow to pay off on its state investment.
Politicians often like to tout the benefits of the “free market.” By curtailing state grants and low-interest loans, that market will be free to invest in states that are more financially welcoming.
In 1987, the state’s economy was badly in need of a jump-start, and it got one from Gov. Mickelson and the REDI Fund. Since then, that gamble has paid off more often than it’s gone bust. What Hansen calls “corporate welfare” has been a usually sound investment for South Dakota.
Dana Hess spent more than 25 years in South Dakota journalism, editing newspapers in Redfield, Milbank and Pierre. He’s retired and lives in Brookings, working occasionally as a freelance writer.
See Republican Zach Lahn speak after primary win in governor’s race
GOP gubernatorial candidate Zach Lahn speaks to his supporters during an election night watch party on June 2, 2026, in West Des Moines.
The makeup of the Legislature was up in the air as of 1 a.m. after South Dakota’s primary election.
Ten Republican state lawmakers ousted in 2024 are angling to get their seats back in 2026. Results were mixed for the nine who had primaries on Tuesday, with results still coming in for several races and others set for possible recounts.
Shawn Bordeaux of Rosebud won the state’s only Democratic primary, beating Troy “Luke” Lunderman for a chance to return to the state Senate.
Bordeaux will face Chamberlain Republican Rebecca Reimer in November’s general election. Reimer, who was term-limited in the state House of Representatives, beat Lower Brule Sen. Tamara Grove in Tuesday’s primary.
In Watertown’s District 5, Rep. Josephine Garcia fell in a state Senate primary to incumbent Sen. Glen Vilhauer. Garcia beat Byron Callies in the 2024 primary to earn her seat in the House of Representatives, but opted to challenge Vilhauer for his Senate seat instead of seeking reelection to the House.
Callies, Vilhauer and Garcia are all from Watertown.
Vilhauer won with 59% of the vote. His was one of the first state legislative victories of the night reported on the Secretary of State’s website.
Vilhauer won handily, but he said he wasn’t necessarily expecting to as polls opened on Tuesday.
“I knew it was going to be a battle going in,” Vilhauer said. “She worked hard on her side, and I didn’t know what to expect.”
Callies was among the first to call Vilhauer to congratulate him, around 9:30 p.m.
“I’m happy, because Glen’s a solid legislator,” said Callies, who’s angling to win his seat back in the general election.
Garcia did not return a call seeking comment.
In District 21, Sen. Mykala Voita of Bonesteel beat former Sen. Erin Tobin of Winner in a rematch of their 2024 contest, which Voita won by a few dozen votes that year. This time around, Voita bested Tobin by 1,002 votes.
In response to a request for comment, Voita sent a text reading “Glory to God!”
Tobin did not return a call from South Dakota Searchlight about her race after it was called, but said earlier in the evening she would be “at peace” with the results regardless of what they might be.
Another rematch saw Yanktonites Lauren Nelson and Jean Hunhoff battling for District 18’s state Senate seat. Nelson was a newcomer in 2024 when she beat Hunhoff, who’d spent decades in the Capitol between stints in the House and Senate. On Tuesday, Nelson held off Hunhoff, winning by 243 votes.
Other notable races
- District 4 Rep. Dylan Jordan of Clear Lake, first elected in 2024, finished fourth in a five-way race. As of 1 a.m. Wednesday, he trailed Ryan Kohl of Milbank and former Rep. Fred Deutsch of Florence, in first and second place, respectively. A recount is possible in that race, with 59 votes separating the top two vote-getters while Rep. Kent Roe, of Hayti, came in third place, with 72 fewer votes than Deutsch.
- District 4 has two possible recounts. In the other, Bryant’s Stephanie Sauder beat Clear Lake’s Tim Begalka by 105 votes in the unofficial tally from the Secretary of State.
- District 1 Rep. Logan Manhart of Aberdeen, elected in the 2024 primary, fell to Rep. Nick Fosness, a hospital administrator appointed by Gov. Larry Rhoden in 2025, and newcomer Daniel Kjos.
- Another recount was possible as of Wednesday at 1 a.m., in the District 16 race for House of Representatives. Rep. John Shubeck of Beresford trailed Lisa Bogue of Beresford by 245 votes in unofficial results. Jason VanDenTop of Canton was in third place, trailing Shubeck by 68 votes.
Vote totals incomplete
- Sen. John Carley of Piedmont, who won his first term in 2024, trailed William Meirose of Sturgis by 166 votes as of 1 a.m. Wednesday.
- Former Rep. Tyler Tordsen led Rep. Tony Kayser by two votes in the District 14 primary, with results still coming in. The Sioux Falls men are vying for second place and a spot on the November general election ballot alongside Rep. Taylor Rehfeldt of Sioux Falls, who led by more than 600 votes early Wednesday.
- District 28 Sen. Sam Marty of Prairie City was in a close race with former legislator Ryan Maher of Isabel.
- Former Rep. Gary Cammack of Union Center, who lost his seat in 2024, and Gary Deering of Hereford, led Reps. Terri Jorgenson of Piedmont and Kathy Rice of Blackhawk in the District 29 race.
- In District 30, Hot Springs Sen. Amber Hulse led former Sen. Julie Frye-Mueller of Rapid City by more than 1,300 votes.
- Former Sen. David Johnson of Rapid City led Sen. Curt Voight of Rapid City in a rematch of their 2024 race for District 33 Senate in early results.
- Rep. Heather Baxter of Rapid City has signaled her intention to challenge sitting Secretary of State Monae Johnson for the Republican nomination to that constitutional office at the state’s Republican Party convention this summer. In early results, Baxter trailed former Rapid City Rep. Becky Drury and Rep. Mike Derby in the District 34 primary.
- Early results in the District 35 primary put Sen. Greg Blanc, elected in 2024, in a close race with fellow Rapid City resident Nicole Mitzel.
South Dakota Searchlight is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
South Dakota
Republican businessman Toby Doeden advances to primary runoff in South Dakota governor’s race
Republican businessman Toby Doeden has advanced to a runoff in South Dakota governor’s race, NBC News projects.
Gov. Larry Rhoden, who replaced Kristi Noem last year when President Donald Trump nominated her to lead the Department of Homeland Security, was battling with Rep. Dusty Johnson and former state House Speaker Jon Hansen for a second spot in the July 28 runoff. The primary will go to a runoff because no candidate eclipsed 35% of the vote.
Trump did not issue an endorsement in the race. Doeden branded himself on his campaign website as “a total political outsider who’s tired of the government’s failure to deliver on its promises” and one of Trump’s “fiercest supporters.”
Rhoden, a former lieutenant governor, agriculture secretary and lawmaker, campaigned on property tax cuts and lowering crime in his bid for a four-year term.
Johnson is the state’s lone representative in the House, where he previously was chair of the Republican Main Street Caucus. Hansen, who was elected to the South Dakota House in 2010, held several leadership positions before he became speaker.
The Republican nominee will be the favorite to win the general election in the solidly red state this fall. A Democrat has not served as governor in South Dakota since the 1970s, and Trump carried the state by 29 points in 2024.
News
Agronomist: eastern South Dakota crops hit and miss
An agronomist in eastern South Dakota says corn and soybeans are hit and miss as the growing season begins.
Steven Zemlicka with AgTegra Cooperative tells Brownfield, “We’ve got corn anywhere from V1 all the way up to V4. Biggest stuff’s maybe touching V5. Corn’s coming right along, looks pretty good. A little bit of hail here too, but I don’t think it’s going to be much of an issue. Stands for the most part are pretty good, pretty solid.”
Zemlicka says soybean emergence has been slow due to the wet, cool conditions, and there are a few fields that still need planted.
“People were still working on planting soybeans when we got the recent rain.”
He says recent rain totals ranged from a half inch to as much as four inches in the northeast part of South Dakota; the southern part of the state has been drier.
South Dakota’s corn is rated 61 percent good to excellent, with soybean conditions rated 57 percent good to excellent, according to USDA’s first condition ratings of the season.
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