Oil Dollars Benefit Some Of Those In Agriculture

Every issue has its positives and negatives. Oil has changed the face of the MonDak region forever, it has caused serious problems with housing, infrastructure, the ability of natives to conduct daily business, and it has forced people to rethink individual values and priorities. For those farmers without mineral rights, farming only gets more and more difficult as input costs soar and the available land becomes increasingly more expensive to buy or to rent. However, those farmers who do have mineral acres and who have benefited through those acres have a secure future and they will be able to farm for as long as they want.

Oil dollars have allowed some farmers and ranchers to upgrade equipment, add pivots, acquire more land and to diversify their farming. These farmers can afford to hire help, make improvements on outbuildings, dwellings, and property. They have the wherewithal to cover the costs of farming even in a disaster year, and if their child wants to farm, he or she will be able to do so. As one lady who lives near Dore remarked to me, “Most of us have oil wells around here, so we like what’s happening here.”

The influx of oil has inflated the price of land in certain areas. Even marginal land in these hot spots sells for quadruple its worth. This brings a mixed blessing, as although it allows farmers to sell parcels of unproductive or marginal land and make excellent money in the process, it also may encourage many farmers and ranchers to sell out completely, removing even more land from agricultural use. As one man said to me, “If someone wants my land and offers me the kind of money they’re paying for land over at Dore, they can’t write me a check fast enough.”

Ag businesses have seen increased sales of equipment and farm implements. “Oil definitely hasn’t hurt anything,” said one dealer. “Some farmers who had to go for years with no new equipment can now afford new machinery because of the oil. The last few years have been good; I think this has trickled down to the Main Street businesses as well.”

Ag businesses sometimes can make extra money outside of their primary focus. One ag business has a private rail siding, which it has been able to rent out to the railroad. “If a typical ag business has assets that can be used for oil related interests, it can be a benefit,” the businessman told me. “We have some track sites, and the railroad will pay for track space, so it is a source of revenue we would not normally have.”

All area individuals and businesses have problems competing with oilfield wages, so many go without enough help. Farmers have difficulty finding hired hands and businesses see large turnovers as employees move on to better paying jobs. “During harvest we have to bring in outside people,” said Sidney Sugars Ag Manager Russ Fullmer. “The factory has problems with turnover, so finding employees is an issue.”

In spite of the amount of agricultural land lost to production in the last year, Sidney Sugars does not expect to lose overall beet acres, at least not at this time. “Some areas will lose,” Fullmer remarked. “From Sidney to the Missouri a lot of land has been taken out of ag production. We’re not sure if we’ll see a net loss, however, as we are growing beet acres in other areas because beet prices are so good at the present time.”

He added,” It isn’t a huge problem, but it will take a bite out of certain areas as they were tight areas anyway, as many growers rented land. Now they have to compete for that land so it makes things worse.”