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Economic Contribution Of The Soybean Industry To North Dakota; Summary

Listed author(s):
  • Bangsund, Dean A.
  • Leistritz, F. Larry

Agriculture remains a major component in the North Dakota economy, yet many activities within the agricultural industry remain unquantified. The purpose of this study was to measure the economic contribution of the soybean industry to the North Dakota economy. Expenditures and returns from soybean production, grain handling, and transportation were estimated to calculate the direct economic impacts from soybean activities. Secondary economic impacts were estimated using the North Dakota Input-Output Model. Since 1995, soybean acreage in the United States has increased substantially in nontraditional row-crop regions, such as those found in some parts of North Dakota. Soybean acreage in the state has increased 135 percent since 1995, and 210 percent since 1990. The expansion of soybean production in North Dakota has been limited to the eastern half of the state, with the largest concentration of production occurring in the Red River Valley. Soybean production in North Dakota averaged 1.2 million planted acres from 1996 to 1998. Direct impacts (expenditures and returns) from soybean production averaged $184 per acre or $221 million annually from 1996 through 1998. Average direct impacts from handling soybeans at North Dakota elevators were estimated at $4.3 million annually. Transportation of soybeans to market destinations was estimated to generate $10.1 million in annual direct impacts to the state. Total direct impacts from soybean production, grain handling, and transportation were estimated at $235.4 million annually. Total annual economic impacts (direct and secondary effects) from soybean production, grain handling, and transportation were estimated at $579 million, $11.7 million, and $26.3 million, respectively. The total annual economic impact from all soybean activities was estimated at $617 million. Soybean industry activities supported 7,700 full-time secondary jobs in North Dakota. Soybean activities were also responsible for $25 million in combined property tax, sales tax, individual income tax, and corporate income tax revenues.

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Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agricultural Economics Reports with number 23323.

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Date of creation: 1999
Handle: RePEc:ags:nddaer:23323
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  1. Coon, Randal C. & Leistritz, F. Larry & Hertsgaard, Thor A. & Leholm, Arlen G., 1985. "The North Dakota Input-Output Model: A Tool for Analyzing Economic Linkages," Agricultural Economics Reports 23304, North Dakota State University, Department of Agribusiness and Applied Economics.
  2. Hamm, Rita R. & Thompson, JoAnn M. & Coon, Randal C. & Leistritz, F. Larry, 1993. "The Economic Impact of North Dakota's Health Care Industry on the State's Economy in 1991," Agricultural Economics Reports 23243, North Dakota State University, Department of Agribusiness and Applied Economics.
  3. Domine, Matt & Benson, Douglas, 1998. "North Dakota Grain and Oilseed Transportation Statistics 1997-98," UGPTI Report 231862, North Dakota State University, Upper Great Plains Transportation Institute.
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