Screen Photo Dr. Greg Lardy with North Dakota State University presented data on the economic impact of agriculture in North Dakota at a news conference at the State Capitol in Bismarck Tuesday.

The agriculture industry generates $41.3 billion in gross business volume across North Dakota, or 25% of the state’s total volume.

“It truly is one of the cornerstones to the state’s economic activity,” said Dr. Greg Lardy, vice president of Agriculture at North Dakota State University, in presenting the economic impact of agriculture at a news conference hosted by Gov. Kelly Armstrong and Agriculture Commissioner Doug Goehring in Bismarck Tuesday.

“It doesn’t matter where you are at in the state,” Armstrong said. “Everything begins and ends with agriculture, and it has for a very long time, and it will continue to do that long after the last barrel of oil is taken out of the ground or the last MCF of gas is taken out of the ground. Ag is still going to be the backbone of what we do and who we are as North Dakotans.”

Agriculture supports more than 123,000 jobs across North Dakota, according to the industry-funded study conducted by NDSU’s Department of Agribusiness and Applied Economics and the Center for Social Research.

“It is almost certainly our state’s largest employer. This labor income results in $10 billion in wages and benefits paid to our employees,” Lardy said.

The impact of agriculture also is growing, Lardy said.

“You just have to look to the major soybean crushing plants that we’ve added in the state over the last couple years at Spiritwood, Casselton – the additional projects that are coming online relative to livestock development. All critical to the state’s agricultural sector. All adding value to the crops and livestock that we grow here,” he said.

Lardy cited support at the policymaking level with legislation that includes House Bill 1332, which would create a value-added agriculture incentive fund, and Senate Bill 2342, which would create a value-added milk processing facility incentive program.

Armstrong advocated for more value-added projects, such as a potato plant proposed in Grand Forks, along with continued research in autonomous ag technology.

Goehring spoke about the benefits to rural communities and the diversity and stability that would come to the agriculture industry with proposed dairy facilities in eastern North Dakota. The state is working hard to encourage animal agriculture, he said.

“Animal ag generally even has a higher multiplier effect than just grain operations. So, as you add that other component into it, you’re just going to put more and more value back into those communities and back into the state,” he said.

However, expansion of animal agriculture also has raised concerns. Dakota Resource Council, along with representatives of Abercrombie Township, recently filed a district court appeal to challenge a state permit for the proposed 12,500-head dairy in Abercrombie in Richland County, due to concerns over water pollution.

Goehring also acknowledged the challenges of fluctuations in commodity prices, including soybeans and corn recently, but noted improving the support and footing for the industry will help. He also said the country needs to be strategic about how it approaches trade tariffs.

“Generally, retaliatory tariffs come back and hit agriculture first,” Goehring said. “So, let’s be careful about how we approach these things.”

He suggested the country be more engaged in free trade agreements.

“A lot of other countries have trade agreements with each other, and we’re subject to 20 and 30 percent tariffs by other countries right now,” he said. “Maybe we can get reengaged in some trade activity again, and having some trade agreements will help. It’ll help agriculture. It’ll help our energy market. Maybe we can do more for our allies, and maybe it’ll start setting the table so that we can do more production manufacturing and services right here in our own country.”