Committee holds bill to raise wheat and barley assessments after hearing debate over uses of new funds

The Senate Agriculture and Veterans Affairs Committee heard extensive testimony on Senate Bill 2161, which would raise assessments collected for the North Dakota Barley Council and the North Dakota Wheat Commission. After testimony supporting the increases for research, breeding and promotion, the committee chose to hold the bill for further consideration.

Senator Greg Kessel, a family farmer and sponsor, summarized the proposal: increase the barley assessment from 20 mills to 30 mills per bushel and the wheat assessment from 15 mills to 20 mills per bushel. He presented the increases as measures to ensure funding for research, marketing and staff continuity. "These funds will be invested in key initiatives including research and development in improved crop yields and sustainability, marketing efforts to enhance competitiveness," he told the panel.

Barley and wheat representatives and industry groups offered repeated support. Nathan Ball, chairman of the North Dakota Barley Council, said the council had run deficit spending for several years and estimated a five‑year average deficit of about $65,000 annually; he said growers overwhelmingly supported the increase at the county‑representative level. Scott Husell and Aaron Chelland, commissioners and board members with the North Dakota Wheat Commission, described investments in public wheat breeding at North Dakota State University, international market development and the need to keep checkoff revenue aligned with rising costs. Alyssa Glass of the U.S. Durum Growers Association and Ryan Ellis of the North Dakota Grain Growers Association also testified in favor, citing research, domestic promotion and international marketing needs.

Speakers provided concrete figures and context: the current wheat checkoff of 15 mills is $0.015 per bushel; a 5‑mill increase was described as roughly an added two cents per bushel by one witness and "about a dollar an acre" by another when translated into per‑acre cost depending on yields. Nathan Ball said of 1,627 growers in 2024, 19 requested refunds (about 1.17%). Several witnesses pointed to lost capacity in other states that did not raise checkoffs.

Opposition testimony came from Matt Perdue representing the North Dakota Farmers Union (NDFU). Perdue told the committee that while NDFU recognizes the value of checkoffs for research and market development, its membership policy opposes checkoff funds being used for political or lobbying activities. He explained that North Dakota Century Code 4.1‑13‑23 currently requires that at least 2 mills from the wheat checkoff be distributed to trade associations for activities including domestic wheat policy and sales. NDFU submitted a proposed amendment to remove the word "at least," seeking to ensure any additional dollars created by the increase would be dedicated to research, education and market development rather than expanding funds available for policy or lobbying activities.

Committee members asked technical questions about how assessments are collected and refunded, reciprocity between elevators across state lines, and the current statutory allocation. Matt Perdue said he was not seeking to eliminate the existing 2‑mill allocation but to ensure the new revenue would not increase funds directed to policy activities.

After more than an hour of testimony, the committee did not vote on SB 2161 and opted to hold the bill to allow further review and potential amendment. No final fiscal figures or amendment language were adopted during the hearing.