North Dakota Farm Bureau: Economic Impact of Dairy and Pig Farm Additions

North Dakota Farm Bureau: Economic Impact of Dairy and Pig Farm Additions

The entry of a new 1,000-cow dairy farm causes a measurable increase in economic activity within Stutsman County, North Dakota, both in terms of construction and annual operations.

Common measures of economic activity are employment (jobs), labor income, value added, and output (sales). When a dairy farm enters a local economy, it causes a series of new economic activities (impacts) to take place. For this summary, economic impacts are broken into two categories: construction and operations. Construction and operations generate tax revenue through federal taxes as well as state and local taxes.

Of the estimated $1,346,708 generated in tax revenue, about $446,147 is at the state and local level, and about $900,561 at the federal level. The magnitude of these new economic activities is largely related to the presence of industries which supply the needed inputs for a new dairy farm. A 1,000-cow dairy farm in Stutsman County sources roughly 20% of all inputs locally.