North Dakota Governor, Doug Burgum has lauded the positive implications of a recently passed law that eases restrictions on corporate farming in the state. The legislation, which came into effect shortly after being signed on April 28, brings promising prospects for agriculture manufacturing ventures, particularly in the soybean processing sector.
Designed to bolster animal agriculture in North Dakota, the new law allows livestock operations to attract external investments, presenting a significant opportunity for growth. One notable project set to benefit from this regulatory change is the Epitome Energy soybean crush plant in Grand Forks. This plant is poised to produce soybean oil for renewable fuel or food purposes, alongside soybean meal primarily used for livestock feed.
Governor Burgum, during a meeting with the Grand Forks Herald editorial board on May 10, emphasized the significance of the law. He underscored the carve-out provision and its potential for attracting economic investments that can drive expansion in the industry. Previously, family ownership requirements limited the ability to start new livestock operations, making external capital essential for growth.
Governor Burgum acknowledged the challenges of solely relying on family-owned operations, as not all relatives may possess the necessary capital to invest. The relaxation of restrictions allows for real capital infusion and stimulates the establishment of new ventures.
With the new law in effect, North Dakota farmers can now benefit from outside investments, albeit with certain limitations. The majority of partners in a corporate structure must be farmers, and no corporation can own more than 160 acres of farmland.
North Dakota is the eighth-largest soybean producer in the US, but only a fraction of its soybeans are processed within the state. Three soybean crush plants are under construction, with the Green Bison Soy Processing facility expected to be operational by 2023 and the North Dakota Soybean Processors plant expected to begin operations in 2024. Epitome Energy is planning to break ground in Grand Forks in 2023.
Governor Burgum highlighted the shift towards renewable fuels, making soybean processing economically viable in North Dakota. Soybean oil derived from the plants can be used for biodiesel production, and the new law has the potential to attract local consumers of soybean meal.
The new legislation has created a substantial opportunity for growth and economic development in North Dakota's agriculture manufacturing sector. With the potential for increased investments and the shift towards renewable fuels, the state is poised for further advancements in soybean processing.
Photo Credit: Getty-grafvision
Categories: North Dakota, Business