AN ACT to amend and reenact subsection 7 of section 10-06.1-01, subsection 3 of section 10-06.1-12.2, subdivision b of subsection 1 of section 10-06.1-15.2, subdivision d of subsection 3 of section 10-06.1-17, and subsection 3 of section 10-06.1-17.1 of the North Dakota Century Code, relating to corporate or limited liability company farming and ranching.
SB 2150 revises North Dakota’s corporate farming and ranching laws, specifically the rules governing authorized livestock farm corporations and authorized livestock farm limited liability companies. The bill updates the statutory definition of “farming or ranching” and clarifies several exclusions, including agricultural support services, small-scale aquaculture or greenhouse agriculture on holdings of 40 acres or less, beekeeping, timber or forest products, marijuana production, and certain service contracts with processors or distributors.
The bill also tightens and clarifies ownership and reporting requirements for these entities. It requires shareholders and members, including controlling persons or entities, to be organized in the United States and to be owned entirely by U.S. citizens, permanent resident aliens, or authorized persons under state law. It expands the information that must be disclosed in filings and annual reports, including ownership percentages, voting rights, management information, acreage held, geographic descriptions of farmland or ranchland, income sources, and statements confirming compliance with acreage limits and restrictions on crop production or livestock grazing.
SB 2150 amends multiple sections of Chapter 10-06.1 of the North Dakota Century Code, affecting how authorized livestock farm corporations and authorized livestock farm LLCs are formed, reported, and monitored. The bill does not broadly change all agricultural business law, but it does refine the legal framework for corporate and LLC involvement in livestock farming and ranching, especially around citizenship/organization requirements, disclosure obligations, and acreage limitations. It also updates filing requirements with the Secretary of State and reinforces restrictions intended to keep these entities within the statutory limits for corporate farming.
The bill appears to have been generally well received. It passed the Senate 41-4 and the House 91-0, indicating strong bipartisan support and little opposition in the House. The absence of committee transcript material limits insight into debate, but the voting record suggests broad agreement on the need to clarify and update the corporate farming and ranching statutes.
The limited opposition in the Senate suggests the main points of contention likely involved the bill’s continued regulation of corporate and LLC ownership in agriculture, particularly the citizenship and ownership restrictions and the detailed reporting burdens imposed on livestock farm entities. Potential concerns may also have centered on whether the bill sufficiently balances oversight with flexibility for agricultural businesses. However, the near-unanimous House vote indicates that any disagreements were modest and did not prevent passage.