NORTH DAKOTA – While sharing a mostly positive outlook on North Dakota’s economic health, the person who oversees the state’s finances admits there are some challenges.
“Our economy is doing pretty well overall…but obviously we have some headwinds right now,” State Treasurer Tom Beadle told The Flag on Thursday, referring to the agriculture and energy sectors.
Beadle says oil production has “been good and in line with what we forecasted” coming out of the latest legislative session, but oil rig counts are down.
Listen: ND Treasurer Tom Beadle with The Flag’s Steve Hallstrom
In September, the state’s Department of Mineral Resources reported rigs are down from 29 to 27 compared to August.
“So we’d like to see more activity and development,” said Beadle. “We’d also like to see oil prices pick up a bit, too which would help out western North Dakota.”
Beadle also acknowledge the ongoing struggles within the farming industry.
Low market prices and higher costs have put pressure on farmers to figure out ways to survive as the tariff negotiations carry on between the U.S. and foreign nations.
“The price [of crops] is pretty good but the costs have gone up so much over the last few years that it’s eating into the margins quite heavily.” said Beadle who added the greater cost of farm equipment also isn’t helping.
Sales and corporate tax revenues also dipped last quarter, but Beadle says the state’s cash flow is “still strong” and expects the numbers to “bounce back.”
All that said, Beadle suggested overall there will be light at the end of the tunnel because of the state’s “ever-diversifying economy” with the technology sector.
“If any state is well positioned to navigate that it’s North Dakota.”
