North Dakota Economy

The U.S. Bureau of Economic Analysis estimates that North Dakota's total state product in 2005 was $24.178 billion. Per capita personal income in 2005 was $31,395. This ranks the state 32nd in the nation.

North Dakota leads the nation in production of several crops. Agricultural activity is largely dependent on rainfall. Wheat (particularly the durum variety used for pasta), barley, canola, soybeans, sunflowers, and flax are present throughout the state. The wetter Red River Valley is dominated by farms, with the chief crops being sugar beets, soybeans and corn. Cattle ranches are more common in the dry southwest, though dairy ranches are more common toward the east. Honey is produced in the central part of the state. Small quantities of juneberries and grapes support a modest domestic winery industry.

The state's relatively small industrial output includes electric power, food processing, machinery, lignite mining, petroleum extraction, and tourism.

North Dakota has the only state-owned bank in the United States, the Bank of North Dakota. The bank, by law, holds all funds of all state and local government agencies in North Dakota. Its deposits are not guaranteed by the Federal Deposit Insurance Corporation but by the state itself. The state also operates the only state-owned mill in the country, the North Dakota Mill and Elevator.

North Dakota's reputation for severe weather has been cited by many as a motivating factor behind emigration and the failure of outside industry to locate in the state, though some have found this to be a secondary factor to the overall economic situation in the state.

State income taxes are collected through 5 different tax brackets, ranging from 2.1 percent to 5.54 percent. North Dakota allows a credit for the net amount of tax paid to another state on income that is subject to tax by both North Dakota and that other state. North Dakota's sales tax rate is 5 percent. Local subdivisions are also allowed to levy a sales and use tax. This tax rate generally ranges from 1 percent to 3 percent. For the most part, personal property is exempt from property tax.

Sunflowers in Traill County