FARGO, ND - North Dakota Governor Kelly Armstrong discussed several key issues facing the state, ranging from agricultural and energy sector development to significant property tax reforms. Armstrong also highlighted a state-led financial initiative to assist federal workers impacted by an ongoing government shutdown.
Strengthening the Agricultural Economy
Addressing concerns about the agricultural safety net, Governor Armstrong emphasized the importance of protecting North Dakota's commodity-based economy. He cautioned that a lack of protection could lead to severe consumer impacts, suggesting prices could surge to $10 for a loaf of bread or $12 for a gallon of milk without proper support.
To bolster the industry, Armstrong advocated for holding imported beef to the same standards as domestic beef and stressed the necessity of onshoring agricultural inputs, such as fertilizer. He pointed to a proposed nitrogen fertilizer plant in Grand Forks, which is currently working to secure the remaining capital needed to move forward.
Armstrong also praised recent state-level reforms that slightly relaxed anti-corporate farming laws to encourage animal agriculture. He noted that these changes have already spurred progress in areas like Barnes County, Abercrombie, and Hillsboro, which creates local synergies by utilizing crops like feed corn and ethanol feedstocks. However, he strongly criticized local county moratoria that block agricultural development, stating that such measures send a detrimental message that the state is "closed for business".
Energy Sector Volatility and Innovation
The conversation also covered the state's energy sector, where Armstrong noted that global political uncertainties significantly influence fluctuating oil prices. Because oil revenue is a primary driver of the state budget, the difference between $61 and $94 per barrel has a massive impact on available state funds.
With the Bakken and Three Forks formations maturing, the Governor emphasized that future energy success relies on enhanced oil recovery technologies. He referenced a need to focus on what has been called "crack the code 2.0" to extract more resources from existing rock.
Property Tax Relief and Future Goals
On the legislative front, Armstrong touted recent property tax reforms, which included boosting the primary residential credit from $500 to $1,600 and capping local property tax budget growth at 3%. He urged all eligible residents to apply for the credit.
Looking ahead to the next legislative session, Armstrong expressed a goal to increase that credit even further. He also discussed the long-term objective of achieving zero property tax, suggesting this could be funded through Legacy Fund earnings rather than the general fund, provided that local municipalities are prevented from backfilling the relief with new local taxes.
Assistance for Unpaid Federal Workers
In response to the current federal government shutdown, Governor Armstrong detailed a newly established state loan program designed to help essential federal employees. Because Transportation Security Administration (TSA) and Border Patrol agents are currently working without pay, the state has partnered with local community banks—backstopped by the Bank of North Dakota—to offer them low-interest 2% loans. This initiative aims to provide a financial bridge for these workers until the federal funding lapse is resolved.