NDFU submits amendment to corporate farming bill

The amendment authorizes the establishment of new authorized livestock farm corporations or authorized livestock farm limited liability companies. The amendment requires that these new entities: and annual report to ensure they are complying with the law. The amendment to HB 1371 ensures ALF corporations and LLCs are held to that same standard.

• Are controlled by family farmers or ranchers.

• Are subject to a 160-acre limit. Importantly, the bill also limits each shareholder to 640 acres of total investment in ALF entities.

• Cannot be owned by investors other than U.S. citizens, permanent resident aliens, or companies organized in the U.S.

• Are subject to the same reporting and enforcement standards in the existing law.

These reporting requirements consist of the names of shareholders or members, the names of officers and directors, the acreage owned by the entity and more. These reporting requirements are critical to ensuring that any farming or ranching corporations or LLCs, including ALF entities, are complying with the law.

Conclusion

As amended, HB 1371 would allow unrelated farmers and ranchers to incorporate together to establish animal feeding operations. The bill would allow those operations to access outside investment. But the amendment ensures that family farmers and ranchers have control of new animal feeding operations. While NDFU would prefer to leave the state’s corporate farming law as it is, the amended bill ensures family farmers and ranchers remain the central focus of livestock development in North Dakota.