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December 9, 2004

Federal Expenditures to North Dakota Down in 2003

In 2002, 29 percent of all federal expenditures entering North Dakota were agricultural assistance payments, up from 26 percent in 2001 and 18 percent in 1999. In 2003, however, payments dropped to only 14 percent of the total, significantly reducing North Dakota’s overall capture of federal dollars.

This month’s “Population Bulletin,” a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on federal expenditure dollars coming into North Dakota. Federal dollars flowing into North Dakota, in the form of federal expenditures, totaled $5.7 billion in 2003.

Between 1999 and 2002, federal payments increased significantly throughout the state, 12 percent per year on average. Between 2002 and 2003, however, federal expenditures decreased 11 percent. Much of this loss can be attributed to a decline in agricultural assistance payments. Only three counties in the state saw an increase in federal agricultural assistance payments, while the majority of counties saw declines of at least 56 percent. “The reduction in agricultural assistance payments reflects both the lag in when payments are received by farmers and when they are reported by the Census Bureau,” says Richard Rathge, State Data Center director. “For example, nearly $277 million in agricultural assistance was reported in 2002 for crop losses that occurred in 2000.

Although additional sizeable payments for crop losses in 2000 were distributed late in fiscal year 2003, they were not reported until 2004. “This results in a significant but artificial decline in agricultural assistance payments for 2003,” Rathge says.

Per-capita federal expenditures in North Dakota totaled $9,033 in 2003, down 13 percent from 2002 after adjusting for inflation. Even so, North Dakota ranked fifth in the nation in per-capita federal expenditures in 2003. Nationally, per-capita federal expenditures totaled $6,910 in 2003, 24 percent below North Dakota’s level. Throughout North Dakota, 2003 per-capita federal expenditures ranged from a low of $4,873 in Mercer
County to a high of $29,395 in Mountrail County.

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Source: Richard Rathge, (701) 231-8621, Richard.Rathge@ndsu.edu
Editor: Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu


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