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Contribution of the bison industry to North Dakota's economy

Published online by Cambridge University Press:  30 October 2009

Randall S. Sell ,
Dean A. Bangsund  and
F. Larry Leistritz
Randall S. Sell
Affiliation:
Research Scientists, Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105-5636.
Dean A. Bangsund
Affiliation:
Research Scientists, Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105-5636.
F. Larry Leistritz*
Affiliation:
Professor, Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105-5636.
*
Corresponding author is F.L. Leistritz ([email protected]).
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Abstract

The bison industry is relatively new to North Dakota where in 1998 an estimated 23,000 bison were raised in 47 of its 53 counties. The purpose of this study was to estimate the economic contribution of the bison industry to the state's economy in 1998. The bison industry, as defined here, is the production and processing of bison and the related revenues and expenditures generated from those activities that occurred within the state. With the construction and operation of a bison processing plant in North Dakota, this industry has undergone rapid expansion within the past 10 years. A survey of North Dakota bison producers and processors was conducted to provide estimates of direct impacts of the bison industry within the state. Secondary economic impacts were determined using the North Dakota Input-Output Model. The direct impact of production and processing of bison was estimated at $23 million. This generated an additional $47 million in secondary impacts within the state. The North Dakota bison industry supported a total of 757 secondary full-time equivalent (FTE) jobs. Total economic activity generated within the state was estimated at $70 million, including $27 million in personal income and nearly $18 million in retail sales. In addition, the bison industry generated $4 million in tax revenues, including property, personal income, sales and use, and corporate income taxes. The direct impact of bison production in 1998 ranked fourth in North Dakota's livestock industry: below cattle and calves, dairy products, and swine, but above turkeys and sheep. If the bison industry maintains its present growth rate, it will be larger than the North Dakota swine industry within 3 years, and sooner if the swine industry continues to decline as it has since 1995. The average direct impact generated for each bison in the state was $1,000. Total economic activity generated per bison was $3,100 (includes direct and secondary impacts from production and processing). For every 30 bison an additional secondary FTE job was supported.

Keywords

bison processingbison productionbison ranchingeconomic impactsfarm Surveys
Type
Articles
Information
American Journal of Alternative Agriculture , Volume 16 , Issue 3 , September 2001 , pp. 106 - 113
Copyright
Copyright © Cambridge University Press 2001

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