NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665
September 14, 2000
The bison industry in North Dakota generates an estimated $70 million in annual economic activity, according to a study from North Dakota State University.
"This is a relatively new industry to North Dakota’s agricultural sector, so the size of the economic impact is a bit surprising," says Randy Sell, a research scientist in the Department of Agribusiness and Applied Economics and lead author of the study. "There may not be a large number of producers involved in this industry, but it has a definite impact on the economy of the state."
In terms of farm receipts from production in 1998, the bison industry at $16.4 million ranked fourth below beef with $353 million, dairy at $99 million and swine at $30 million, but above poultry, and sheep and lambs. Industry officials estimate that bison production is growing at about 20 percent annually.
The North Dakota Buffalo Association estimates there are more than 20,000 head of bison in North Dakota. A decade ago, most bison production in the state was largely confined to hobby farms, Sell notes. With the formation of the North American Bison Cooperative and opening of its commercial processing facility in New Rockford in 1994, bison production and processing became a viable agricultural industry.
According to the study, every head of bison in the state generates an average total direct and secondary economic impact of $3,100 from production and processing. Each head contributed about $184 to state and local government tax collections.
The study estimates the direct impact of production and processing of bison in the state at $23 million. Another $47 million of secondary impacts is generated within the state. The study also estimates that the industry supports 757 secondary full-time jobs in the state.
Bison cow-calf production generated an estimated $13 million in direct economic impact, and bison finishing generated another $3.4 million. Total direct impact from processing was an estimated $6.4 million.
"Most people who are familiar with North Dakota understand the importance of agriculture to the region," Sell says. "However, the relationship of various activities within agriculture and the relative importance of those industries continues to undergo fundamental changes. This study illustrates just how quickly those changes can occur."
Sell and co-authors research scientist Dean Bangsund and professor Larry Leistritz asked members of the North Dakota Bison Association to provide information on income and expenses generated by their bison enterprises. They also asked for information on revenues by type of animal sold and estimates of revenue from other sources such as the sale of hides, skulls and cooperative dividends. Information provided by the North American Bison Cooperative’s processing plant allowed researchers to estimate impacts of the bison processing industry.
The study was supported by the North Dakota Buffalo Association and the North Dakota Agricultural Products Utilization Commission.
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NDSU Agriculture Communicaiton
Source: Randy Sell, (701) 231-7357
Editor: Tom Jirik, (701) 231-9629