North Dakota is occasionally described as a socialist state because it has a strong co-operative movement and a few unusual institutions:
RUSSELL, N.D. — Many prairie farmers, particularly those close to the U.S. border, considered trucking grain to the U.S. in 2014 because of terrible basis levels at western Canadian elevators.
Market conditions are different now, but a North Dakota grain elevator co-operative is planning to buy more Canadian grain in the future.
“The board of directors has voted … to accept Canadian grain,” said Cameron Erickson, manager of the Souris River Cooperative, which operates four grain elevators near Newburg, N.D., 70 kilometres south of Waskada, Man.
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“This whole area up here is doing its best to anticipate this potential Canadian grain movement coming to the south.”
Souris River has handled a nominal amount of Canadian grain and oilseeds in the past, but the co-op is hoping to expand its trading area northward.
It expects to merge with another farmer controlled elevator in Bottineau, N.D., in late March, and if that happens, the new co-op will have the capacity to handle 25 to 30 million bushels of grain and oilseeds.
The co-op wants more Canadian grain because overland flooding has cut into North Dakota grain production in recent years. Tapping into a larger geography should help the co-op maintain volumes.
“This (grain handling) is a volume orientated business,” Erickson said.
“Canada grows a massive amount of grain that has to go somewhere.”
The Souris River co-op believes it can handle an influx of Canadian grain because Canadian Pacific Railway and BNSF have invested hundreds of millions of dollars into rail capacity in North Dakota to move oil out of the state.
The improved rail service should benefit grain farmers, including Canadian producers who want to truck grain to North Dakota.
- North Dakota Mill is a state-owned flour mill in Grand Forks. According to its website, it “provides support to North Dakota agriculture, commerce and industry.”
- The state operates the Bank of North Dakota in Bismarck. State politicians created the bank in 1919 to provide fair loans to farmers. It now offers student loans and supports the state’s “commerce and industry.”
