ECONOMIC CONTRIBUTION OF THE SUGARBEET INDUSTRY IN MINNESOTA, NORTH DAKOTA, AND EASTERN MINNESOTA

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 on relatively limited acreage in Minnesota, North Dakota, and eastern Montana. 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 Minnesota, North Dakota, and Montana entities in fiscal 2003 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, which included the growing regions and processing plants located in the Red River Valley, west central Minnesota, and northwestern North Dakota/northeastern Montana, planted 776,348 acres and processed 14.5 million tons of sugarbeets in 2003. Production and processing activities generated $1.1 billion in direct economic impacts. Gross business volume (direct and secondary effects) from the sugarbeet industry was estimated at $3.1 billion. Direct and secondary employment in the industry was 2,628 and 29,258 full-time equivalent jobs, respectively. State-level tax revenues generated by the industry in the tri-state region were estimated at $62.6 million. In real terms, gross business volume of the sugarbeet industry in Minnesota and eastern North Dakota has increased 76 percent since 1987. Increases in business activity from the industry have resulted from increased production, processing, and marketing activities.