House Agriculture Committee hears bill to expand fund for large value‑added ag facilities; Agristo potato plant cited

The House Agriculture Committee heard testimony on House Bill 1332, which would add value‑added agriculture facility incentive funding to the Agriculture Diversification and Development Fund and authorize a $30,000,000 transfer from the Strategic Investment Improvements Fund to support eligible projects. Proponents said the bill is aimed at recruiting large processing facilities to North Dakota and would attach performance conditions to grant payments.

Under the bill as described to the committee, eligible projects must be located in North Dakota, be new construction on an industrial‑ready site with municipal infrastructure, carry a capital investment of at least $350,000,000, leverage regional producer capital investment, have a competing offer from at least one other Midwestern state, produce a new product or a variant that diversifies the market, and show an estimated economic contribution of at least $20,000,000 when fully operational based on an economic analysis by the Bank of North Dakota. The grant may be used for infrastructure including site acquisition, natural gas and electrical supply, roads, water and waste lines, storm water conveyance and rail lines. Testimony described the funding as a completion grant: 50 percent of the award would be payable after a certificate of occupancy and the remaining 50 percent after the facility reaches 50 percent of production capacity.

Doug Goehring, North Dakota agriculture commissioner, told the committee the bill is tied to interest from a large, global potato processor seeking a North American presence. "They spent the last 3 years studying the economic aspects of this project: agronomy, soils, communities, cultures, growers, and transportation system. They've even done 2 years' worth of field trials in both Wisconsin and in North Dakota," Goehring said, describing the company's due diligence and outreach to growers.

Local officials and economic developers said the project would generate construction and operating activity and expand markets for growers. Brandon Bochenski, mayor of Grand Forks, said the city and growers had worked to make the site competitive. "You've won our hearts and our guts," Bochenski told the committee, recounting a phrase used by company representatives to describe their interest in Grand Forks. Keith Lund, president of the Grand Forks Region Economic Development Corporation, presented Department of Commerce estimates the project would support hundreds of jobs and generate ongoing state tax revenue; he summarized the department analysis as projecting roughly $6,100,000 in personal income tax and $649,000 in corporate income tax during a two‑year construction period, and roughly $9,200,000 in sales tax revenue and $813,000 in individual income tax annually once operational.

Growers testifying said the company has engaged producers directly and that the facility would open new varieties and markets, including potatoes that can be grown on non‑irrigated land. Farmers said grower investment in storage and on‑farm infrastructure would be needed; witnesses cited potential grower investment in the hundreds of millions of dollars and projected acreage increases. Brad Nielsen described Agristo's approach to growers and his visit to company facilities in Belgium, saying the company was "extremely clean, quiet, no odor emissions" and had a workplace culture that appealed to producers.

Supporters, including representatives of North Dakota Farmers Union, North Dakota Grain Growers and the North Dakota Farm Bureau, urged the committee to advance the bill, noting the AD committee would review individual applications and that the staged payments reduce state risk by tying disbursements to construction and production milestones.

No committee vote on House Bill 1332 is recorded in the transcript. Committee members asked several questions about company ownership, site readiness, utility work and the sources and timing of the proposed funds. A governor's office representative, Aaron Weber, testified that the bill aligned with the governor's stated policy priorities and asked for a favorable recommendation.

The hearing record shows extensive testimony in support and committee discussion about competitiveness, logistics, and the need for producer investment; the committee did not take final action on House Bill 1332 during the hearing recorded in the transcript.

Members of the hearing who spoke on House Bill 1332 include Representative Haggart (bill sponsor), Doug Goehring (North Dakota agriculture commissioner), Brandon Bochenski (mayor, City of Grand Forks), Aaron Weber (policy director, Office of the Governor), Keith Lund (president, Grand Forks Region Economic Development Corporation), Brad Nielsen (grower), David Fedge (grower), Lauren Easted (grower), Katie Schulich (grower), Matt Perdue (North Dakota Farmers Union), Dan Wagsland (North Dakota Grain Growers), and Rachel Gross (North Dakota Farm Bureau).