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 updates North Dakota’s corporate and LLC farming and ranching laws, with a focus on the special rules that apply to authorized livestock farm corporations and authorized livestock farm limited liability companies. The bill revises the statutory definition of “farming or ranching” and clarifies several reporting and ownership provisions tied to these entities. It also keeps certain activities outside the definition, including agricultural support services, small-scale aquaculture or greenhouse agriculture, beekeeping, timber or forest products, marijuana production, and certain service contracts with processors or distributors.
A major part of the bill strengthens and clarifies disclosure requirements for livestock farm entities. It requires more detailed information about shareholders or members, including citizenship or permanent resident status, ownership percentages, voting rights, capital interests, and whether owners are actively engaged in farming or ranching. For entities that are not individuals, the bill requires disclosure of U.S. organization/incorporation and 100% U.S.-qualified ownership, including through controlling persons or organizations. The bill also updates annual report requirements to include the same kinds of ownership, management, acreage, and income information.
The bill’s practical effect is to refine the regulatory framework governing who may own and operate these specialized livestock farming entities in North Dakota and what they must report to the state. It preserves acreage limits and reporting on farmland or ranchland holdings, including statements that the entity does not exceed 160 acres directly and that related interests do not combine to exceed 640 acres in certain circumstances. It also continues to prohibit these entities from engaging in crop production or grazing livestock on farmland or ranchland, reinforcing that the authorized livestock farm structure is limited to livestock operations rather than general farming.
The overall sentiment around SB 2150 appears strongly favorable. The bill passed the Senate 41-4 and the House 91-0, indicating broad bipartisan support and little visible opposition in the recorded votes. No committee transcripts were provided, so there is no recorded debate to suggest significant controversy in the legislative discussion.
The main points of contention, based on the bill text itself, would likely center on the ownership restrictions, citizenship and residency requirements, acreage caps, and the continued separation between livestock operations and crop farming. These provisions can affect family farms, corporate agricultural investors, and entities with complex ownership structures, especially those involving non-individual owners or out-of-state interests. However, the vote totals suggest that any concerns did not prevent overwhelming approval.
SB 2150 amends North Dakota Century Code chapter 10-06.1, which governs corporate and limited liability company farming and ranching, by revising definitions, ownership eligibility rules, and annual reporting obligations for authorized livestock farm corporations and authorized livestock farm limited liability companies. It affects the statutory treatment of agricultural entities by tightening disclosure of ownership and control, clarifying U.S.-based ownership requirements, and updating acreage and income reporting standards. The bill also reinforces existing limits on the amount and type of farmland or ranchland these entities may hold and preserves the prohibition on crop production and grazing by these specialized livestock entities.
The bill appears to have been received positively and with little resistance. It passed the Senate by a wide margin of 41-4 and the House unanimously 91-0, suggesting strong bipartisan support for the changes. No committee discussion transcripts were provided, so the available record does not show organized opposition or major debate.
The likely areas of contention are the bill’s restrictions on who may own or control these entities and the detailed reporting requirements imposed on shareholders, members, and management. The citizenship, permanent residency, and U.S.-organization requirements may be viewed as limiting participation by nonresident or foreign-linked investors, while the acreage caps and prohibition on crop production/grazing preserve a narrow legal category for livestock-only operations. Even so, the recorded votes indicate that any objections were limited and did not generate substantial legislative opposition.