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Economic Contribution of the Sugarbeet Industry in Minnesota and North Dakota

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Author Info

  • Bangsund, Dean A.
  • Hodur, Nancy M.
  • Leistritz, F. Larry

Abstract

Agricultural industries in small geographical areas with limited acreage tend to be overlooked by those not associated with the growing region or industry. Sugarbeets continue to be produced in a relatively small geographic area and on relatively limited acreage in Minnesota and North Dakota. These factors, along with continued debate over policies affecting domestic sugar industries and recent industry expansions, help justify a continued assessment of the economic importance of the sugarbeet industry to the regional economy. Revenues from sugarbeet production and expenditures by processors to Minnesota and North Dakota entities in fiscal 2011 represented the direct economic impacts from the industry. Expenditure information was provided by sugarbeet processing and marketing cooperatives. Secondary economic impacts were estimated using input-output analysis. The sugarbeet industry, which included the growing regions and processing plants located in the Red River Valley of Minnesota and North Dakota and west central Minnesota planted 652,741 acres and processed 15.5 million tons of sugarbeets in fiscal 2011. Production and processing activities generated $1.7 billion in direct economic impacts. Gross business volume (direct and secondary effects) from the sugarbeet industry was estimated at $4.9 billion. Direct and secondary employment in the industry was 2,473 and 18,830 full-time equivalent jobs, respectively. The industry paid $15.4 million in property taxes and was estimated to generate another $105 million in sales and use, personal income, and corporate income taxes in Minnesota and North Dakota. In real terms, gross business volume of the sugarbeet industry in Minnesota and eastern North Dakota has increased 185 percent since 1987. Increases in business activity from the industry have resulted from increased production, processing, and marketing activities, as well as relatively high sugar prices during fiscal 2011.

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Bibliographic Info

Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 121494.

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Date of creation: Feb 2012
Date of revision:
Handle: RePEc:ags:nddaae:121494

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Keywords: sugarbeet industry; North Dakota; Minnesota; economic impact; Agribusiness; Agricultural and Food Policy; Production Economics;

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References

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  1. Bangsund, Dean A. & Leistritz, F. Larry, 1999. "Economic Contribution Of The Soybean Industry To North Dakota," Agricultural Economics Reports 23467, North Dakota State University, Department of Agribusiness and Applied Economics.
  2. Leistritz, F. Larry & Bangsund, Dean A., 1995. "Economic Contribution of the United States Sunflower Industry," Agricultural Economics Reports 23216, North Dakota State University, Department of Agribusiness and Applied Economics.
  3. Leistritz, F. Larry & Bangsund, Dean A., 1995. "Economic Contribution of the Wheat Industry to the North Dakota Economy," Agricultural Economics Reports 23291, North Dakota State University, Department of Agribusiness and Applied Economics.
  4. Bangsund, Dean A. & Leistritz, F. Larry, 1993. "Economic Contribution of the Sugarbeet Industry to the Economy of North Dakota and Minnesota," Agricultural Economics Reports 23250, North Dakota State University, Department of Agribusiness and Applied Economics.
  5. Lazarus, William F., 2002. "How Big Is Minnesota'S Food And Agricultural Industry?," Staff Papers 13630, University of Minnesota, Department of Applied Economics.
  6. Leistritz, F. Larry & Sell, Randall S. & Bangsund, Dean A., 1994. "Economic Contribution of the Wheat Industry to the Minnesota Economy," Agricultural Economics Reports 23303, North Dakota State University, Department of Agribusiness and Applied Economics.
  7. Bangsund, Dean A. & Leistritz, F. Larry, 1998. "Economic Contribution Of The Barley Industry In North Dakota, South Dakota, And Minnesota," Agricultural Economics Reports 23423, North Dakota State University, Department of Agribusiness and Applied Economics.
  8. Bangsund, Dean A. & Leistritz, F. Larry, 1998. "Economic Contribution Of The Sugarbeet Industry To North Dakota And Minnesota," Agricultural Economics Reports 23450, North Dakota State University, Department of Agribusiness and Applied Economics.
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Citations

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Cited by:
  1. Bangsund, Dean A. & Hodur, Nancy M., 2013. "Petroleum Industry's Economic Contribution to North Dakota in 2011," Agribusiness & Applied Economics Report 146512, North Dakota State University, Department of Agribusiness and Applied Economics.
  2. Leistritz, F. Larry & Bangsund, Dean A., 2010. "Economic Impact of Sitting Bull College on the Regional Economy," Statistical Series Reports 120311, North Dakota State University, Department of Agribusiness and Applied Economics.
  3. Leistritz, F. Larry & Bangsund, Dean A., 2010. "Economic Impact of Sisseton-Wahpeton College on the Regional Economy," Statistical Series Reports 120312, North Dakota State University, Department of Agribusiness and Applied Economics.
  4. Bangsund, Dean A. & Hodur, Nancy M. & Leistritz, F. Larry, 2012. "Economic Contribution of the Sugarbeet Industry to Eastern Montana and Western North Dakota," Agribusiness & Applied Economics Report 121713, North Dakota State University, Department of Agribusiness and Applied Economics.

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