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N.D. Wheat Industry Generates $3.56 Billion a Year

Posted on 12/31/2006

Wheat is king in North Dakota. With an annual economic impact of $3.56 billion, it is one of the most important economic activities in the state, agricultural or otherwise.

Main street benefits. According to a 2005 study by North Dakota State University agricultural economists, direct annual impacts from all wheat activities in North Dakota are estimated at $1.35 billion. This includes:
$1.1 billion from production,
$32 million from grain handling,
$73 million in expenditures retained in North Dakota's economy for truck and rail transportation (of $199 million spent), and
$100 million from wheat processing.
These direct impacts generate an additional $2.21 billion in secondary impacts including 35,000 full-time jobs.

Every acre counts. Each acre of wheat planted generates about $393 in total economic activity annually plus about $13.88 in state tax revenue. The wheat industry is responsible for an annual average of $1.2 billion in retail trade activity and $1.1 billion in economy-wide personal income.

Leading all commodities. Wheat leads all commodities produced in the state in cash receipts from farm marketings, accounting for an average 20 percent, according to the N.D. Agricultural Statistics Service.

Production is widespread. Wheat is produced in all areas of the North Dakota, but is most concentrated in the Red River Valley and northern third of the state.