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NDOC prison ranch cites hay-price spikes, BLM contract timing and permit needs; requests technical and one-time budget support
Summary
NDOC officials said the prison ranch is largely self-supporting but experienced retained-earnings declines after price spikes and a mandated transfer; the ranch is negotiating a new BLM feeding contract, paused dairy operations and requested environmental permitting and CDL/driver certification funding.
Deputy Director Bill Quenga and ranch managers described budget pressures and operational details for the NDOC Prison Ranch (budget account 3727), including effects of volatile hay and feed markets, contract timing with the Bureau of Land Management (BLM), environmental-permit needs and a one-time retained-earnings shortfall.
Quenga said the ranch generates revenue from livestock sales, composting/organics, and contracts to house and feed wild horses under BLM agreements; the ranch reported work for approximately 65 offenders and noted the BLM contract can require care for up to 2,000 horses and theatered saddle training for roughly 100 horses a year. Justin Pope, ranch manager, told the committee the ranch participates in an annual horse adoption event and that recent adoptions averaged about $4,500 per adopted animal.
Ranch staff described a sequence of financial pressures. Feed and hay prices spiked from historical highs (Quenga said the highest previously used contract price was about $240 per ton) to $375 per ton at market peaks; that increase, plus a required transfer of $350,000 to the general fund under AB 3 (special session), strained retained earnings and forced operational adjustments, including temporary suspension of dairy operations. Pope said the ranch now seeks a renewed multi‑year contract with BLM and has submitted proposals for a bridge contract while they negotiate terms.
Budget requests included E300 out‑of‑state travel for operational benchmarking, E301 increased funds for driver physicals and CDL certifications for ranch drivers, and E302 for environmental evaluation and permit review assistance tied to a specific contract. The department also requested small reductions to reflect dairy production and feed-price fluctuations and a one‑time allocation (E306) to address negative retained earnings tied to the earlier sweep.
Ranch managers outlined potential revenue and efficiency steps: buying hay in large lots when market timing permits, developing partnerships (including a growing organics/Full Circle Compost partnership that has expanded offender work opportunities), and pursuing a CDL-training pathway that could place released offenders in local transport jobs. Committee members requested updated projections of the ranch’s ending balance for the current fiscal year and additional detail on proposed contract and permit work.
Ending: NDOC agreed to provide follow-up figures for FY-end retained earnings and pledged to continue negotiations with BLM; officials invited committee site visits to view ranch and compost operations.
