In North Dakota, only 16 percent to 18 percent of agricultural receipts come from livestock, compared to neighboring states that double or nearly triple that percentage.
Recently, Gov. Doug Burgum signed House Bill 1371, a modernization of North Dakota’s corporate farming law that legislators and farm commodity groups hope will encourage growth in the animal agriculture sector.
“These narrowly defined changes in state law will take the handcuffs off our farmers and ranchers and allow capital investment to flow into our state, growing animal agriculture, adding value to crops, creating opportunities for the next generation, and helping rural communities and schools to thrive in North Dakota once again,” Burgum said.
In his State of the State address on Jan. 3, Burgum urged the Legislature to modernize the corporate farming law to grow the state’s dairy, livestock, feedlot, swine, and poultry production and add value to North Dakota crops.
“With House Bill 1371, we can level the playing field with other states and expand animal agriculture with environmental stewardship,” said Burgum. “We’re grateful to the bill’s prime sponsor, Rep. Paul Thomas of Velva, Commissioner [Doug] Goehring, and all of the bill sponsors, commodity groups, and other supporters for their collaboration on this groundbreaking legislation.”
HB 1371 allows an authorized livestock farm corporation or limited liability company to own or lease farmland or ranch land if the entity has no more than 10 shareholders or members. For corporations, shareholders holding 75 percent or more of the shares must be actively engaged in farming or ranching; for an LLC, the percentage is 51 percent. Shareholders must be U.S. citizens, and no corporation or LLC may own, lease, or have an interest in more than 160 acres of farmland or ranchland.
These agricultural facilities are going to not only drive animal agriculture numbers, but they’ll also likely add value to feed grains through processing plants, corn ethanol production facilities, and canola crush plants, bringing capital back into local communities.
The Animal Agriculture Facilities Bill was originally passed in 2021
Also known as the Animal Agriculture Facilities Bill, HB 1371 initially sought to establish standards and regulations for authorized livestock corporations and farms in North Dakota as introduced and passed in 2021. It aimed to ensure the proper management of animal waste, prevent groundwater contamination, and protect the health and safety of the public.
Supporters of the original bill argued that it was necessary to promote responsible animal agriculture in North Dakota and protect public health and the environment. Opponents of the bill argued that it would stifle small-scale livestock operations and favor larger corporations.
As updated, supporters say that the bill will add value to every bushel of grain, and offset expenses as stakeholders are able to utilize manure.
“It creates more value in our backyard, with swine, with dairy, maybe some more feedlots, also opportunities maybe to get into the poultry business,” Goehring said. “Now, I believe we have the environment to support our farmers, to support our rural communities, and to support animal agriculture.”
The bill has an emergency clause, which will take effect immediately, allowing potential projects to begin construction this spring.
Co-sponsoring the bill were House Majority Leader Mike Lefor and Reps. Dick Anderson, Jay Fisher, Jared Hagert, Craig Headland, Senate Majority Leader David Hogue, and Sens. Cole Conley, Larry Luick, and Terry Wanzek. The House approved the final bill by a vote of 72-20, and the Senate passed it 41-5.
»Related: What is a CAFO and what is its role in agriculture?
