The North Dakota Beef Industry Survey I. Demographics, Challenges, and Opportunities

Abstract Text:

The North Dakota Beef Industry Survey was developed to determine how producers perceive the future direction of the industry. This report reviews responses related to producer demographics, challenges and opportunities in the industry, and succession planning of producers’ operations. Of the 2,500 surveys mailed out, 527 responses were received (21.1% response rate), and 436 (82.7% of surveys returned) respondents indicated that they were active beef producers. In a question where respondents could select each sector of the industry they were involved in, commercial cow-calf production (94.5%) was present on a majority of operations, followed by backgrounding (37.8%), purebred/seedstock (14.2%), stocker (8.9%), and feedlot (6.4%) operations. Seventy-two percent of principal operators indicated they were over the age of 50, and 62.3% of respondents indicated they had been a beef producer for more than 30 years. Beef production accounted for 49.1% of gross revenue, followed by cash grain farming (31.3%), other off-farm work (16.0%), secondary businesses (2.9%), and custom harvesting (0.7%). In addition, 59.8% of respondents reported off-farm income from a spouse. Changing environmental regulations (35.2%), animal welfare/animal rights (28.1%), and input costs (27.8%) were the factors reported most frequently that ‘may cause exit from industry’, whereas land (49.4%) and pasture (50.1%) availability and input costs (38.4%) were the factors most frequently viewed as a ‘barrier to expansion’. On a scale of 1-5 (1 = obstacle to entering the beef industry, 5 = attraction), producers perceived self-employment (4.3), rural lifestyle (4.0), working with family (4.0), and working with livestock (4.0) as the greatest attractions for future generations entering the industry, whereas environmental regulations (1.8), input costs (1.8), and labor availability (2.1) were perceived as the greatest obstacles.  Within 10 years, 48.2% of principal operators plan to exit the beef industry; 4.4% within 2 years, 17.0% in 2-5, and 26.8% in 6-10 years. More than half (64.6%) of operators are encouraging an heir to take over their operation, and 61.6%  of respondents would be willing to work with non-family members interested in entering the beef industry.  However, 53.9% of respondents have not discussed a succession plan for their operation.   Survey results highlight challenges our current producers are facing and also provide insight regarding opportunities for future generations of producers.

Keywords: Beef industry, Challenges, Opportunities