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The Role Of Agriculture In The North Dakota Economy

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  • Leistritz, F. Larry
  • Lambert, David K.
  • Coon, Randal C.

Abstract

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

Suggested Citation

  • Leistritz, F. Larry & Lambert, David K. & Coon, Randal C., 2002. "The Role Of Agriculture In The North Dakota Economy," Statistical Series Reports 23095, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddssr:23095
    DOI: 10.22004/ag.econ.23095
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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. Coon, Randal C. & Leistritz, F. Larry & Hertsgaard, Thor A., 1986. "Composition of North Dakota's Economic Base: A Regional Analysis," Agricultural Economics Reports 23316, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Coon, Randal C. & Leistritz, F. Larry, 1997. "Assessing The Economic Impacts Of New Or Recently Expanded Manufacturing And Exportable Service Firms In North Dakota," Agricultural Economics Reports 23248, North Dakota State University, Department of Agribusiness and Applied Economics.
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    1. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2014. "North Dakota Lignite Energy Industry's Contribution to the State Economy for 2013 and Projected for 2014," Staff Papers 190590, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2012. "North Dakota Lignite Energy Industry's Contribution to the State Economy for 2011 and Projected for 2012," Staff Papers 122321, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2014. "North Dakota Lignite Energy Industry's Contribution to the State Economy for 2013 and Projected for 2014," Staff Papers 190590, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Leistritz, F. Larry & Lambert, David K. & Coon, Randal C., 2002. "The Role Of Agriculture In The North Dakota Economy - Summary," Statistical Series Reports 23096, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Coon, Randal C. & Leistritz, F. Larry, 1997. "A Statistical Analysis Of The North Dakota Lignite Energy Industry'S Contribution To The State Economy For 1996 And Projected For 1997," AE Series 23079, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Coon, Randal C. & Leistritz, F. Larry, 1999. "A Statistical Analysis Of The North Dakota Lignite Energy Industry'S Contribution To The State Economy For 1998 And Projected 1999," AE Series 23080, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Leistritz, F. Larry & Coon, Randal C. & Thompson, JoAnn M., 1993. "The Economic Base of North Dakota Counties," Agricultural Economics Miscellaneous Reports 51169, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Coon, Randal C. & Leistritz, F. Larry, 2011. "North Dakota Lignite Industry's Contribution to the State Economy for 2010 and Projected for 2011," Staff Papers 120350, North Dakota State University, Department of Agribusiness and Applied Economics.
    9. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2012. "North Dakota Lignite Energy Industry's Contribution to the State Economy for 2011 and Projected for 2012," Staff Papers 122321, North Dakota State University, Department of Agribusiness and Applied Economics.
    10. Coon, Randal C. & Leistritz, F. Larry, 2011. "North Dakota Lignite Industry's Contribution to the State Economy for 2010 and Projected for 2011," Staff Papers 120350, North Dakota State University, Department of Agribusiness and Applied Economics.
    11. Bangsund, Dean A. & Leistritz, F. Larry, 1995. "Economic Contribution of the Wheat Industry to the North Dakota Economy," Agricultural Economics Reports 23460, North Dakota State University, Department of Agribusiness and Applied Economics.
    12. DeVuyst, Cheryl Sinn & Leistritz, F. Larry & Schepp, Angela, 2003. "Socioeconomic Impacts Of Agricultural And Non-Agricultural Development In Rural North Dakota," 2003 Annual meeting, July 27-30, Montreal, Canada 21899, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Bangsund, Dean A. & Leistritz, F. Larry, 1993. "Economic Impact of Expanded Calf Backgrounding and Expanded Irrigation: Applications of the Value-Added Agriculture Impact Assessment Model," Agricultural Economics Reports 23317, North Dakota State University, Department of Agribusiness and Applied Economics.
    14. Coon, Randal C. & Leistritz, F. Larry, 2000. "North Dakota Lignite Energy Industry's Contribution to the State Economy for 1999 and Projected 2000," AE Series 23084, North Dakota State University, Department of Agribusiness and Applied Economics.
    15. Coon, Randal C. & Leistritz, F. Larry, 2010. "North Dakota Lignite Industry's Contribution to the State Economy for 2009 and Projected for 2010," Staff Papers 120310, North Dakota State University, Department of Agribusiness and Applied Economics.
    16. Leistritz, F. Larry & Coon, Randal C., 1998. "A Statistical Analysis Of The North Dakota Lignite Energy Industry'S Contribution To The State Economy For 1997 And Projected For 1998," AE Series 23087, North Dakota State University, Department of Agribusiness and Applied Economics.

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