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North Dakota The Economy
North Dakota is an agricultural state. Farming is, directly or indirectly, the major source of income. However, mining, manufacturing, and tourism are also important. The extraction of mineral fuels—petroleum, coal, and natural gas—is the principal mining activity. Food processing is the chief type of manufacturing.
North Dakota had a work force of 358,000 in 2006. Of those the largest share, 40 percent, worked in the diverse service sector, doing such jobs as working in tourist establishments or data processing. Another 21 percent worked in wholesale or retail trade; 21 percent in federal, state, or local government, including those in the military; 9 percent in farming (including agricultural services), forestry, or fishing; 7 percent in manufacturing; 14 percent in finance, insurance, or real estate; 21 percent in transportation or public utilities; 5 percent in construction; and 1 percent in mining. In 2005, 7 percent of North Dakota’s workers belonged to labor unions. The state has a right-to-work law, which prohibits union membership as a condition of employment.
Agriculture
In 2005 there were 30,300 farms in North Dakota. Of those 72 percent produced annual income of more than $10,000, a high rate by national standards. Many of the remaining farms were sidelines for operators who held other jobs. Farmland occupied 15.9 million hectares (39.4 million acres), of which 67 percent was cropland. Most of the rest was used as range for livestock grazing. In the early 1990s about 41,000 people worked on farms in North Dakota. That represented a decrease of nearly one-fifth from the early 1980s. However, projections are that employment in farming will remain steady into the early 2000s.
North Dakota lies in the heart of the spring wheat belt, where wheat is planted in spring and harvested in late summer. The state is surpassed only by Kansas in total wheat production. It harvests more durum wheat, which is used in making pasta, and other varieties of spring wheat than any other state. In barley, sunflower seed, and flaxseed the state also ranks first in the nation. Furthermore, it is a leading producer of dry beans, potatoes, honey, oats, and sugar beets. After wheat, cattle provide the second most important source of income for North Dakota’s farmers. The state also produces such crops as hay, soybeans, and corn, as well as dairy products and hogs.
Patterns of Farming
The land bordering the Red River in eastern North Dakota is the richest agricultural land in the state. In addition to wheat growing, a variety of specialty crops are raised, including sugar beets, soybeans, and sunflowers, as well as most of the potatoes grown in the state. In the southeast, corn and oats are important and hogs, as well as cattle, are raised. Corn and hogs, traditionally raised together, are the important products of the Corn Belt, which borders this part of the state. Throughout much of the rest of North Dakota, cash grains, largely wheat but also barley and oats, are usually grown. Flax is grown in many areas. In the Missouri Coteau and in the southwestern part of the state many farmers combine cattle ranching with wheat growing. In south central North Dakota, dairy cattle are numerous.
Mining
Mineral fuels account for 97 percent of the value of North Dakota’s mineral output. Petroleum, which was first brought into production in 1951, accounted for three-fifths of the value of North Dakota’s annual mineral output in the late 1990s. It occurs in a large geologic structure, called the Williston Basin, that underlies western North Dakota as well as parts of South Dakota, Saskatchewan, and Manitoba.
Lignite, a low-grade coal, has been mined in the state since the 1880s. Output reached 3.3 million tons in 1950 and did not exceed that total again until 1966. Thereafter, production increased steadily, reaching 28 million metric tons in 2006. Only Texas produces more lignite than North Dakota.
Like other mineral fuels in North Dakota, lignite comes from the western half of the state. Mercer, Oliver, and McLean counties account for more than 90 percent of the production. Some of the lignite beds in southwestern North Dakota contain small amounts of uranium.
In national production the state ranks ninth in production of oil although it extracts just 2 percent of the U.S. total. Most of the crude oil is refined at Mandan, although some is shipped to refineries in other states. Williams and McKenzie counties lead all the others in petroleum production.
Natural gas was discovered in North Dakota at the end of the l9th century. Commercial production began in 1929. Most of the gas is taken from the oil wells of the Williston Basin. The largest of the nation’s three coal gasification plants is in North Dakota, located near Beulah. It turns the state’s lignite into a high quality synthetic natural gas, in addition to several chemical byproducts with industrial uses.
Other minerals of importance are sand and gravel, which are made into bricks and other products. Salt is found in the Williston Basin, peat is extracted in Bottineau County, and lime is made at Drayton.
Manufacturing
North Dakota’s distance from large consumer centers and sparse population have discouraged the growth of manufacturing. The state ranks 47th in the nation as a manufacturing state, ahead of only Alaska, Hawaii, and Wyoming. Its industries are tied closely to the agricultural activity of the state. The production of industrial machinery, primarily for use on farms, and food processing together account for two-thirds of the total income generated by industry. Machinery production is the leading source of industrial income in North Dakota. The production of dairy products is the leading food-processing activity. Agricultural cooperatives are becoming increasingly popular in the state as farmers band together in an effort to retain a portion of the value added to the raw materials they produce. Closely tied to agriculture are such manufactures as animal feeds and fertilizers. Among the larger establishments in terms of employees are printing and publishing firms and petroleum and natural-gas refineries. Several firms make wood products such as household and commercial furniture and kitchen cabinets. Stone, clay, and glass products supply the construction industry. The state’s largest manufacturing center is Fargo. Other centers are Grand Forks, the Bismarck-Mandan area, and Minot.
Electricity
Thermal power plants fueled by the state’s lignite supply account for 95 percent of the electricity generated. The remaining electricity comes from hydroelectric sources. The large Garrison Dam project on the Missouri River is publicly owned and operated. Fuels are more than adequate to support increased industry in the state.
Transportation
North Dakota has an extensive system of railroad lines, many serving to transport agricultural products from small farming communities. Farm products account for 55 percent of the goods hauled by rail and originating in the state, coal makes up 20 percent, and processed foods represent another 19 percent. In 2004 the state had 5,782 km (3,593 mi) of railroad track.
The principal east-west highway is Interstate 94, which draws a nearly straight line across the southern portion of the state. The main north-south route is Interstate 29, along the eastern border. In 2005 North Dakota had 139,680 km (86,793 mi) of public roads, of which 919 km (571 mi) were federal interstate highways.
There were 8 airports in the North Dakota in 2007, many of which were private airfields. The largest was in Fargo, although none of the state’s airports were considered busy by national standards. |
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