The purpose of this report is to assess the role of agriculture in the North Dakota economy. This analysis is both statewide and regional in perspective (data are provided for each of the state's eight planning regions). Key indicators used in the analysis include sales for final demand (i.e., sales to out-of-state markets), gross business volume (gross receipts), gross state product (value added), and direct employment for each economic sector. The analysis reveals that, although its role in the North Dakota economy has been reduced in a relative sense, agriculture remains a cornerstone of the state economy and remains the largest goods and services exporting sector. While agriculture accounts for smaller shares of state sales for final demand, gross business volume, and gross state product than was the case 10 or 20 years ago, the decrease in agriculture's relative importance in most cases merely signifies that other sectors (e.g., manufacturing) have grown more rapidly. Thus, agriculture's decreasing share of sales for final demand or gross state product to a large extent reflects the success of long-term efforts to diversify the North Dakota economy. The agriculture sector has contributed to North Dakota's economic growth and diversification by serving as a source of commodities for further value-added processing (e.g., durum, potatoes) and as a market for farm input manufacturers. Manufacturing has been the largest single source of growth in gross state product over the past two decades, and both farm input manufacturing (part of durable goods manufacturing) and food processing (part of nondurable goods manufacturing) have been substantial sources of that growth. The importance of agriculture to North Dakota's economy can be highlighted: -Agriculture accounts for one-fourth of basic economic activity and almost 36 percent of all exports of goods and services -Agriculture directly employs almost 11 percent of the state's workers and generates more than $6 billion in business activity (gross receipts) -North Dakota ranks second in the nation in the percentage of gross state product derived from agriculture
The purpose of this study was to measure the economic contribution of the wheat industry to the North Dakota economy. Wheat is produced in all areas of the state; however, production is concentrated in the Red River Valley and in the northern third of the state. Wheat production (spring, durum, and winter wheat) in North Dakota averaged about 9.1 million planted acres and 275 million bushels annually from 2001 through 2003. Direct impacts (in-state expenditures and returns) from wheat production averaged $126.50 per acre or $1.14 billion annually from 2001 through 2003. Direct impacts from handling wheat at North Dakota elevators were estimated at $32 million annually. Transportation of wheat to both in-state and out-of-state destinations was estimated to generate $73 million annually in direct impacts. Annual direct impacts from wheat processing (milling activities) were estimated at $100 million. When secondary economic impacts were included, the wheat industry was estimated to have a gross business volume of $3.56 billion annually from 2001 through 2003. Wheat industry activities also supported over 35,000 full-time secondary jobs and generated $126 million in combined property tax, sales tax, individual income tax, and corporate income tax collections in North Dakota. Due primarily to reduced grain volume, current economic impacts from wheat production, grain handling, and transportation activities decreased from levels in 1991 through 1993. However, impacts from wheat processing increased by 121 percent in real terms between the two periods. Overall, the economic size of the wheat industry in North Dakota declined 33 percent from 1991 through 1993 to 2001 through 2003. Despite recent reductions in wheat acreage and production, the wheat industry in North Dakota remains one of the most important economic activities in the state, agricultural or otherwise.
Choosing new crops based upon a promising marketing forecast may aid in immediate demand. However, New crops that offer advantageous ecological characteristics aid in the long-term cost and stability of the crop system. Ne crops may be used for foodstuffs and non-food applications. Diversity of crops and research is need today in North Dakota to aid farmers in staying both productive and profitable. Utilizing both the ecological and marketing approaches should be central to our strategies.
Value-added commodities were deemed in this 1994 as the having the most potential for growth in sales. Older, traditional commodity markets had matured. Overall factors considered were domestic markets, exports and imports. The demographics of consumers were discussed. The wealthiest nations were deemed as highly potential markets of added-value products. Value-added products can be those that simply have been repackaged for consumption or those that have been processed to produce more complex food stuffs.
The focus of this article was the need to create economic development alternatives in the Northern Plains states especially Native American reservations. South Dakota and North Dakota has different had different barometers for gauging what constituted a successful Native American, grass roots business. The majority of small businesses were completely started, created and funded by the owners themselves.
