ECONOMIC CONTRIBUTION OF THE SUGARBEET INDUSTRY TO NORTH DAKOTA AND MINNESOTA; SUMMARY

Abstract

Agricultural industries in small geographical areas with limited acreage tend to be overlooked by those not associated with the growing region or industry. Sugarbeets continue to be produced in a relatively small geographic area and with relatively limited acreage in North Dakota and Minnesota. These factors, along with continued debate over policies affecting domestic sugar industries and recent industry expansions, help justify a continued assessment of the economic importance of the sugarbeet industry to the regional economy. Revenues from sugarbeet production and expenditures by processors to North Dakota and Minnesota entities in fiscal 1997 represented the direct economic impacts from the industry. Expenditure information was provided by sugarbeet processing and marketing cooperatives. Secondary economic impacts were estimated using input-output analysis. The sugarbeet industry planted 654,400 acres and harvested 11.9 million tons in 1996. Production and processing activities generated $831.1 million in direct economic impacts. Total (direct and secondary) annual economic impacts from the sugarbeet industry were estimated at $2.3 billion. Direct and secondary employment in the industry was 2,486 and 30,436 full-time equivalent jobs, respectively. Tax revenues generated by the industry in North Dakota and Minnesota were $51 million. In real terms, gross business volume of the sugarbeet industry in the two states has increased 74 percent since 1987. Increases in business activity from the industry have resulted from expanded acreage and increased processing activities. The sugarbeet industry remains an important agricultural industry in North Dakota and Minnesota.