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Economic Contribution North Dakota Cooperatives Make To The State Economy


  • Coon, Randal C.
  • Leistritz, F. Larry


Cooperatives are an important form of business organization in North Dakota; 405 cooperatives were operating in the state in 2004, with most (224) related to agriculture (farm supply, agricultural processing, and grain handling). In addition, 33 utility, 66 financial, and 82 cooperatives classified as "other" were operating in the state in 2004. Cooperatives exist to enhance sale price, reduce costs, or provide a service or product for their member-owners, but they also contribute significantly to the state's economy. This report will provide estimates of the contribution North Dakota cooperatives make to the state economy measured in terms of such key economic indicators as retail trade, personal income, total business activity, employment, and tax revenue. North Dakota cooperatives' in-state direct expenditures totaled $2.0 billion in 2004. The largest expenditure category was the household sector ($802.0 million) which was comprised of payroll, patronage refunds, and stock retirement. The direct expenditures were applied to an input-output model to estimate total economic impacts. Total economic contribution resulting from cooperatives' direct expenditures was $6.1 billion in 2004, including $2.2 billion in personal income, and $1.5 billion in retail trade activity. Cooperatives provided full-time jobs for 11,162 workers with many of these jobs in rural areas, and cooperative activities supported an additional 53,676 secondary jobs throughout the state economy.

Suggested Citation

  • Coon, Randal C. & Leistritz, F. Larry, 2005. "Economic Contribution North Dakota Cooperatives Make To The State Economy," Statistical Series Reports 23663, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddssr:23663

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