North Dakota Already Facing Major Crop Loss From Rough Spring Season

A chilling graphic, courtesy of the folks at Heartland Investor Services, which ought to scare every single legislator as well as those in the governor’s office. To date, North Dakota has engaged in expansive government spending driven by heavy tax revenues from the oil boom in the state as well as several years of strong ag years.

But it’s looking, increasingly, as though agriculture isn’t going to be as strong in ND as past years. We just got a report from the OMB which indicates that tax revenue growth in the state is still strong. But agriculture is still North Dakota’s biggest industry, and if we have a tough ag years those tax revenues may not be there.

Keep in mind, as you look at this map, that the USDA has said that as many as 6 million acres in North Dakota won’t be planted. And that’s not counting land planted and then subsequently flooded or otherwise destroyed by weather.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • headward

    Food prices are going to skyrocket this fall with inflation setting in.  There will be more civil unrest around the world when it hits.

  • Ndconservative2011

    It now becomes very apparent that the legislators did not have a clue as to what drives the economy in North Dakota.  The legislators apparently had no clue that If agriculture faces a disaster the state’s economy and revenue suffers as well.  With all the oil revenue they must believe that the state is immune to any form of revenue shortfalls.
    And where was Governor “Spendrymple” during the session – raising the department’s budgets to unstainable levels.
    Spend-spend-spend and let the good times roll has to be their motto.
    What a bunch of irresponsible goofs.

    • http://ndgoon.blogspot.com Goon

      I guess I am not the only on that’s not impressed with Governor Spendrymple!!!

  • spud

    Obviously none of you farm because your a bunch of clueless idiots.  Amount of farmland not cropped greatest out west.  Are you all that dumb to think that land has potential to raise the bumper crops that land on red river valley can.  Also yes we have now lost land because of excess rains.  But crops are never made in June they are made in August and September.  We raise roundup ready seed which has vastly increased yields.  Good thing most of nut jobs don’t farm because it takes balls to farm and none of you have them to preach this crap when we are far from the final results.

    • http://ndgoon.blogspot.com Goon

      Another Liberal that can’t make a point without attacking someone. Why don’t you explain more about farming for us genius. Last time I checked there is also a lot of farming that takes place in the middle of the state as well.

      • spud

        Yes I did go overboard should not have called people idiots and nut jobs even though they were preaching agenda.  For that I apologize.Goon report came out today and wow is classic example of why not to get overly excited with some headline.  We traded corn and wheat limit down. Not good.  As far as middle of state yeah but in our state to be honest everyone refers to it as rr valley and western  so that is why I did not mention middle of state.  Was an honest mistake and even you would admit land in rr valley has far greater yield potential than even middle of state.  My basic point was yields are not determined till crop is in bin and dinero for crop until it is actually sold.  Once again congrats on your Bruins winning it all and I apologize for my ranting on individuals sometimes pausing for a few minutes before keyboarding would be very prudent.  

    • sbark

      Its a number game ………RRV is basically maybe 2 county’s wide if that…………..The vast acres are from that point west, sure the yeild drops off, but the vast number of acres make it impossible for the RRV to match…….

      There are not enough acres in the actual RRV to make up for the western 80% of the farmland.

      Its the same concept as the Dem’cats “tax the rich”…….and now apparently corporate jets…….

      There are not enough “rich’ to make a diff, and as Krauthammer pointed out, we could tax coroporate jets for 5000 years……..and not even put a dent in the Lefts Spending Trillions–there are not that many………….maybe Obama should give up his ultimate corpt jet to go golfing?

      Under Clinton rich was 2 million….by the 2008 election “rich ” was 250,000……….The Left will soon change it again down to 50,000 in order to make the calc. to reduce debt……

      Get off the class envy wagon……..the Bolcheviks fell for it 100 yrs ago…..it should be passe’

  • sbark

    Income effects will be profound………

    Tax effects may be muted…….with strong crops and prices the last few years, many farmers have held the prior years crop in the bins.. into the next, and then even deffered the proceeds into 2012…..

    Then they will recieve Prevent plant money via crop ins. ………which they can take as taxable income this year if it fits their tax planning .

    Again….actual income effects will be staggering………….tax effects payable to N.Dak tax commiss probably not as profound due to held over grain from 2010 sold in Jan–July 2011…..

    an extended wet period, such as Mont. 10 yr dought——-then your talking NDak tax coffers seeing the effect.

    • http://sayanythingblog.com Rob

      The problem, for ND, is that we get most of our tax revenues from the sales tax.  If income is down, sales tax revenues will be down as people shop less.

      • sbark

        Sales tax 33% of budget’d income vrs 20% Income tax………add in “corporate income tax revenue….of 7%……..not that far off from equal

        Farmers are not going to stop living in general, eating, driving….

        …..besides what percent of n.d pop are farmers…….32,000 out of 650k total populatin…..

        How many of the farmers/ landowners in the hardest hit areas on the map have oil revenue, and or Lvsk revenue on top of the wife possible working off-farm to buffer the effects at least on the family living portion of living costs……

        A good chunk of agric purch as excempt from sales tax regardless………

    • spud

      Also should be known that land rents much higher in rr valley and with sugarbeets much more income potential out there as well.  I as a farmer am not overly concerned in my area except for these two inch rains in 20 minute bombs.  Western ND will be in worse position with all pp even if govt report is hard to swallow this morning.  My biggest fear is if devils lake situation is not something done there things will get a heck of lot wetter before we see a drought because when it lets loose the rains out in that area out here we are always wondering which direction it will hit and who is going to get the nasty weather.  They need to drain it before it drains itself lake agassiz effect all over again.

  • sbark

    All is good……Govt report released this morning @ 7:30 shows 2 million more acres of corn planted over industry est, wheat and soybeans near Industry est……………..
    @sbark:disqus 
    CornSoybeans   All   WheatJune 30, 2011 Planted Acres 92.375.208 56.42011 Industry Estimates (Average)90.77676.476  56.6072011 Industry Estimates (Range)89.5-91.575.5-77.19  55.0-57.6March 31, 2011 Report92.17876.609  58.0212010 Actual Acres88.19277.404  53.603*All Numbers are in Millions of Acres

    govt kicking the can down the road, planted is not harvested

    Problem is it will kickup demand from all major users: Lvsk, China and Ethanol………..

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