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.