Run that by me again – – Record year of agricultural production in North Dakota generates half the revenue of oil production?

That’s the report from Dickinson Press, Oil, ag compete for role of ND’s biggest industry

Value of oil and natural gas produced in the state for the 12 months ending July 30, 2013 is estimated at $24.9 billion.

A record-setting year of revenue received by farmers and ranchers in 2012 was $12.1 billion. That is up from the previous record of $9B from 2010.

In terms of gross revenue that means oil & gas ($25B) is twice as large as ag ($12B).

The article goes on to discuss the impact on the state, asserting that most of the revenue flowing to farmers and ranchers stays in the state further stimulating the state’s economy.

In contrast, much of the revenue from energy production leaves the state to pay for supplies and equipment, which would reduce the multiplying impact on the rest of the state, according to the article.

If you want to calculate the relative impact of the multiplying effect of each sector on income of people who live in the state, I think you will need a fine-point pencil and lots more stats than are available publicly. For example, farmers buy seed, gasoline, spare parts, and tractors. Drilling requires a huge number of local workers while production generates a lot of royalty payments to landowners & the state.

Amazing. Check out the very cool article.

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