She and Farmers Union President Dennis Wiese made the announcement Tuesday morning during the paid show "Heartland Today" on Sioux Falls radio station KELO-AM.
Her job will be to raise money for the nonprofit foundation, with a goal of taking in $2 million by 2005.
The foundation's mission is to show young people how to come up with ways to stay in the state through economic development tied to rural agriculture.
Herseth said Wiese and others on the Farmers Union board felt she was qualified largely because the issues she focused on during the campaign are the group's priorities.
Those include: education, rural health, agriculture and keeping young people on small farms and ranches, which support small towns.
"We need legal counsel on the foundation. We need the ability to raise money. We need networking. It just happened to be kind of nice that she knows a little about agriculture being raised on the farm," Wiese said.
Added Herseth: "It was a wonderful fit to be able to bring my experience as an educator, as a lawyer, and giving the foundation a solid start it deserves."
Wiese and Herseth said the long-term goal is to be able to give out grants to support projects.
"We also are committed to raising a certain amount of money so the foundation, as it grows, becomes a grant-giving foundation," Herseth said.
Herseth, a Democrat, lost a bid for the U.S. House of Representatives in November to Republican Bill Janklow. She grew up on the family farm near Houghton in northeast South Dakota and moved back from Washington last year. Herseth now lives in Brookings.
A future run for public office is possible, she said.
"I'm going to keep the option open," Herseth said.
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