PIERRE, S.D. (AP) — South Dakota's sales tax collections on farm equipment have fallen from record highs as profits in the agriculture sector decline, a slide that's led farmers to tighten budgets and to sales slumps for machinery dealers.

The U.S. Agriculture Department predicts farm income will drop again in 2016 to its lowest level in nearly 15 years.

State Economist Jim Terwilliger says agricultural equipment sales taxes match farm income closely. He expects receipts for the current budget year to be down about 15 percent.

The drop has played a part during the last two legislative sessions, making budget-setters cautious about sales tax growth that helps drive state spending.

Sales tax collections on farm equipment peaked in the 2014 budget year at an estimated $43.9 million, falling to $33.6 million in fiscal 2015.

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