ECONOMIC CONTRIBUTION OF THE BARLEY INDUSTRY IN NORTH DAKOTA, SOUTH DAKOTA, AND MINNESOTA

Abstract

Barley is an important crop in the upper Great Plains, yet its economic importance has not been quantified. Expenditures and returns from crop production, grain handling, transportation, and processing activities represented the direct economic impacts from the barley industry. Secondary economic impacts were estimated using an input-output model. Barley production in the tri-state region averaged 3.3 million planted acres and 165 million bushels from 1994 through 1996. North Dakota had about 2.5 million acres. Barley production was estimated to generate $446 million in direct economic impacts. Total (direct and secondary) annual economic impacts from barley production were estimated at $1.2 billion. Annual direct impacts from handling barley at country (local) elevators and terminal elevators in the region were estimated at $13 million. Total annual economic impacts from grain handling activities were estimated at $37 million. Annual regional expenditures and returns from transporting barley from country and terminal elevators to various market destinations were estimated at $47 million. Total annual economic impacts from barley transportation were estimated at $122 million. Impacts from barley processing were limited to regional malting of barley produced in the tri-state region. Annual direct impacts from barley processing were estimated at $58 million. Total annual economic impacts from barley processing were estimated at $180 million. Processing activities employed 431 full-time jobs, while overall economic activity from the industry supported 18,450 secondary full-time equivalent jobs. The barley industry was responsible for generating $32 million annually in sales and use, corporate income, and personal income taxes. Annual economic impacts from all barley activities were estimated at $1.5 billion in the tri-state region. Total economic impacts in North Dakota, South Dakota, and Minnesota were estimated at $1.1 billion, $70 million, and $371 million, respectively.