AGP Executive Report

Kratom Policy Push: North Dakota Gov. Kelly Armstrong is urging lawmakers to ban kratom “in all its forms,” citing overdose deaths and arguing the substance is too lightly regulated. Agriculture & Rotation Research: South Dakota researchers say adding sunflowers to corn-soybean rotations can improve soil health and help stabilize corn yields in dry years. Farm Show Countdown: West Fargo’s Big Iron Farm and Construction Show returns Sept. 15-17 with 900+ vendor booths, free entry, equipment demos, and NDSU Extension sessions. Crop Watch: Sunflower conditions look relatively strong despite drought, with growers expecting some yield pressure but better performance than other major crops. Trade & Food Security: A North Dakota senator-backed resolution at a Midwest legislative conference highlights the Canada-U.S. agricultural free trade partnership as key to reliable, affordable food. Public Safety & Local Projects: Walsh County approved a $10.6M bid package for a jail project, with construction timing tied to a pending board decision. Energy Costs: Labor Day gasoline prices are hitting record levels nationally, with the Middle East conflict keeping crude and pump prices elevated.

Canada-U.S. Ag Trade: North Dakota Sen. Paul Thomas helped pass a Midwestern Legislative Conference resolution backing Canada-U.S. agricultural free trade, citing decades of growth and the two countries’ deep food-supply ties. Energy Costs: Labor Day is shaping up for record-high gas prices, with national averages around $4.14 as Middle East tensions keep crude elevated. Higher Ed Enrollment: NDSU’s new president, Marshall Stewart, says expanded tuition reciprocity is a key lever to boost enrollment and keep more students in-state. Local Public Safety/Infrastructure: Walsh County approved a $10.64M bid package for a jail project, with construction timing tied to a pending board of adjustment decision. Fraud Watch: Casselton logged one BBB Scam Tracker report in July, tying for 9th among ND cities with at least one report. Rural Resilience: Drought-strained ranchers in the region are improvising water delivery, including portable hauling tanks, to keep cattle watered. ND Outdoors/Community: Eddy County commissioners approved a new walleye stocking fishery for the Wood Waterfowl Production Area.

Energy & Travel Costs: Americans are bracing for record Labor Day gas prices, with GasBuddy projecting a national average around $4.03/gal—up from about $4.13 Thursday and well above the prior $3.83 record set in 2012—while Middle East tensions keep pressure on fuel supplies. Defense & Infrastructure: The U.S. Army Corps of Engineers updated plans for a $1.4B–$2B underground communications network tied to the LGM-35A Sentinel missile system, spanning thousands of miles across the Malmstrom missile field. Higher Ed & Workforce Pipeline: NDSU’s new president, Marshall Stewart, says he’ll push for expanded tuition reciprocity to boost enrollment, aiming to keep more Minnesota students in North Dakota after graduation. Local Public Power: Detroit Lakes Public Utilities GM Vernell Roberts earned a national leadership award from the American Public Power Association, highlighting modernization and reliability efforts. State Policy Watch (Kratom): North Dakota lawmakers passed HB 1628, banning chemically manipulated synthetic kratom derivatives while preserving regulated access to natural kratom leaf products. Community & Public Safety: Walsh County approved a $10.64M bid package for a jail project, with construction timing tied to a pending board decision.

Regional Infrastructure & Public Safety: Walsh County approved a $10.64 million bid package for its jail project, with commissioners citing officer transport burdens and pushing for transparency as a conditional-use permit still awaits action. Energy & Cost of Living: With war-linked supply pressures, U.S. gasoline is headed toward record Labor Day levels, and the national average could hit $4.03 a gallon—fuel prices are already around $4.13. Air Quality Policy: The EPA proposed fully approving North Dakota’s regional haze plan, reversing a 2024 partial rejection and aiming to protect visibility in national parks while keeping baseload power operating. Health Policy: North Dakota lawmakers passed House Bill 1628 to ban synthetic kratom derivatives while preserving regulated access to natural kratom leaf products. Rural Economy & Community: ND Next: The Future Grows Here returns Sept. 30–Oct. 1 in Carrington, pairing rural economic development talks with local business stories and a dairy farm tour. Sports (Local Spotlight): No. 8 North Dakota hosts St. Thomas at 3 p.m. Saturday at the Alerus Center in the 60th Potato Bowl.

Labor Day Fuel Shock: GasBuddy says the U.S. average could hit about $4.03/gal by Labor Day, topping the 2012 record as war-linked energy costs and election-year politics crank up pressure. North Dakota Tax Pulse: The Tax Commissioner reports Q2 2026 taxable sales up 3.86% year over year to $7.39B; retail trade and real estate/accommodations rose, while oil, gas and mining fell 8.8%. Energy & Air Policy: EPA proposed fully approving North Dakota’s regional haze plan, reversing a 2024 partial rejection and aiming to protect visibility in national parks while keeping baseload power running. Data Center Politics: A fresh local backlash continues around data centers, with lawmakers and commentators arguing over transparency, impacts, and whether the projects bring real economic value. Kratom Regulation: North Dakota lawmakers passed HB 1628 to ban synthetic kratom derivatives while preserving regulated adult access to natural kratom. Defense & Infrastructure: Work continues on the Sentinel ICBM replacement and a rare Minuteman III suspension overhaul near Minot, signaling major changes to the missile field. Local Economy & Community: Kindred’s Friday football opener drew a huge crowd, with a meat vendor selling 400+ cooked patties in a mascot bet—small-town business energy on full display.

EPA & Clean Air: EPA has proposed fully approving North Dakota’s regional haze plan, reversing a 2024 partial rejection and setting up a 30-day public comment period—aimed at protecting visibility in national parks and wilderness while keeping baseload power running. Flood Recovery: Rugby homeowners are facing repeat basement flooding after another round of heavy rain, forcing families back into repairs. Defense Industry: The Sentinel missile replacement program is set to bring major changes to F.E. Warren and reduce launch centers, as the Minuteman III system nears end of life. State Economy: North Dakota’s taxable sales rose 3.86% in Q2 2026 to $7.39B, with retail and real estate up while oil, gas and mining fell 8.8%. Agriculture & Weather: Minot-area farmers report heat, wind, and hail impacts on canola and other crops heading into harvest. Policy & Water: Trump administration revises proposed WOTUS rules, seeking input on definitions that affect farmers, ranchers, and energy projects. Kratom Law: Gov. Armstrong signed HB 1628 banning synthetic kratom and restricting natural kratom sales to age 21+ with labeling requirements. Carbon Capture: Project Tundra’s updated structure shifts development/operation to Reliant while Minnkota keeps storage responsibilities, with CO2 utilization options like enhanced oil recovery on the table. Workforce/Research: HHS awarded UND $408,184 for biomedical research and training.

Data Center Transparency Fight: North Dakota lawmakers rejected a bill that would have banned non-disclosure agreements between public agencies and data center/industrial developers, with the Senate voting 32-15; backers argued NDAs hide project basics like location and scale, while opponents warned the language could sweep in other routine tech contracts and said existing transparency rules may be enough. Workforce & Growth: At the Global Talent Summit in Bismarck, Gov. Kelly Armstrong and employers focused on filling North Dakota’s biggest constraint—workforce—by recruiting international talent alongside growing local pipelines. Harvest & Safety: With harvest underway, ND DOT and patrol officials highlighted crash risks from farm equipment on roads and urged drivers to slow early, keep distance, and watch for wide turns and debris. Agriculture Under Pressure: Ranchers in hot, dry conditions are dealing with shrinking water sources and degraded pasture ponds, raising costs and animal-health concerns heading into harvest. Community & Employers: Prairie Business spotlighted the region’s 50 best places to work, while First International Bank & Trust announced $75,000 in community giving awards across multiple states. Energy Prices: AAA reported Labor Day gas prices are on track for record highs nationally, tied to crude volatility—an added pressure point for households and businesses.

Workforce & Growth: North Dakota’s Global Talent Summit in Bismarck put workforce shortages front and center, with Gov. Kelly Armstrong saying international recruiting is an “economic necessity” to fill open jobs now. Data Centers & Transparency: Lawmakers rejected a bill that would have temporarily barred government NDAs tied to data centers and industrial projects, while another data-center NDA proposal also failed—keeping the state’s transparency rules in place. Military Gallery Funding: The Senate approved a $20 million construction loan/line of credit to restart the stalled Military Gallery, with lawmakers calling it a “black eye” for the Capitol grounds. Kratom Crackdown: The House passed a bill banning natural kratom sales to people under 21 and moving toward licensing/labeling, while the Senate advanced a separate kratom bill and one NDA/data-center bill failed. Agriculture Under Stress: Hot, dry conditions are damaging ranch water supplies and pasture quality, pushing producers to monitor cattle closely and consider costly alternatives like hauling well water. Rural Life & Safety: Burn bans and campfire restrictions remain in effect for drought-hit areas, and officials urged campers to follow fire-pit rules and fully extinguish fires. Local Business & Connectivity: Gateway Fiber is expanding high-speed 100% fiber service into West Fargo, with service expected by end of 2026.

Kratom Crackdown: Gov. Kelly Armstrong pushed lawmakers in North Dakota’s special session to move fast on a total kratom ban after a temporary emergency order; a policy committee advanced legislation that would outlaw kratom in all forms, with debate focused on public safety and whether the state should treat it like an opioid. Data Center Transparency: A committee recommended against a bill that would add penalties for data center nondisclosure agreements, arguing the issue is too complex for a short session and that existing transparency rules may be enough. Military Gallery Funding: Lawmakers advanced a compromise to restart the stalled Military Gallery project, recommending a $20M Bank of North Dakota line of credit and loosening conditions on $15M already approved, while critics questioned fundraising shortfalls. Agriculture & Soil Health: Conservation-minded farmers and researchers highlighted reduced tillage and strip-till for erosion control and input savings, including new work on sugarbeets in the Red River Valley. USDA Disaster Credit: USDA designated drought disaster areas, including parts of North Dakota, unlocking emergency FSA loans for eligible producers. Northern Plains Fuel Watch: Gas prices stayed volatile but eased from spring highs, with multiple county-level reports showing premium and midgrade prices hovering in the mid-$4 range.

Kratom Crackdown: North Dakota’s special legislative session is pushing toward a total kratom ban after Gov. Kelly Armstrong’s call for “all forms,” with a committee recommending Senate Bill 2408 that would cover both synthetic and natural kratom and set criminal penalties. Data Center Policy: Lawmakers also debated a data center nondisclosure agreement bill (SB 2406), with a do-not-pass recommendation after arguments that existing transparency rules may be enough. Defense Tech & Drones: Army Under Secretary Mike Obadal toured Grand Forks’ Point Defense Battle Lab and GrandSKY UAS tech park, highlighting North Dakota’s counter-drone and unmanned systems momentum. Harvest Safety: Vision Zero is urging drivers to slow down and stay alert as combines and tractors share roads during harvest, citing 35 farm-equipment crashes in 2025. Drought Relief for Ranchers: Farm Rescue launched “Operation Hay Lift” to haul and subsidize hay for eligible ranchers hit by drought, fire, or other disasters. Public Health: Bismarck reported two rabid bats since Aug. 20; officials urged residents to avoid bat contact and report unusual activity. Energy Watch: GasBuddy price checks show premium and midgrade prices still elevated in multiple counties, with statewide averages rising week over week.

Special Session Watch: Grand Forks lawmakers are split on what should’ve made the Sept. 2 special session docket, with data centers, kratom, childcare, vapes and manufacturing all mentioned as priorities while the final list narrows to five bills. Data Center Transparency: A proposed ND law would restrict public officials from signing nondisclosure agreements tied to data centers and other industrial projects, but Gov. Kelly Armstrong argues NDAs can’t override open-records rules and backs an amendment clarifying confidentiality already exempt under state law. Military Museum Funding: Lawmakers will consider a $35 million Bank of North Dakota line of credit to restart a stalled Bismarck military museum project after fundraising fell short. Kratom Regulation: Public testimony is pushing for a full kratom ban, with health providers warning of dependence and addiction risks, while lawmakers weigh tighter rules. Rural Health Funding: HHS awarded $667,064 to North Dakota for public health initiatives and rural health support. Agriculture & Drought: Abnormally dry conditions are shaping livestock and planting decisions, with producers looking for ways to strengthen herds and manage weak links ahead of harvest. Energy & Jobs: Wind energy remains a bright spot for some ND towns, with Badger Wind Farm boosting local tax revenues and lease payments for landowners.

Fuel Watch: GasBuddy reports show Stutsman County regular gas hitting $3.79 (week ending Aug. 22) while Barnes County midgrade bottoms at $4.29 and Grand Forks County midgrade at $4.19—prices remain choppy as global oil tensions and refinery supply issues keep pressure on 2026 gasoline markets. Public Health Funding: HHS awarded North Dakota $667,064 for public health and rural health support, including $423,654 to the state health department and $243,410 to UND’s rural health office. Kratom Policy Fight: North Dakota’s special session is set to tackle kratom regulation; Democrats say leaders waited too long, while Becker-area officials describe kratom addiction risks among middle-class parents and push for clearer statewide rules. Data Center Governance: Gov. Kelly Armstrong opposed a bill that would restrict public officials from signing nondisclosure agreements tied to data center and industrial projects, arguing an amendment is needed to protect already-confidential information. Military & Infrastructure: The Army Corps of Engineers begins a temporary County Road 81 closure tied to the Fargo-Moorhead diversion project, and work has started to remove and relocate human remains found at the Governor’s Residence site. Defense Aviation Upgrade: The MH-139 Grey Wolf reached initial operational capability, with North Dakota’s Minot Air Force Base among the sites slated to receive the new helicopters.

AI & Data Centers: North Dakota lawmakers heard public pushback and calls for a temporary pause/more transparency as they weigh how data centers should be sited, what local control should look like, and how projects affect energy and the environment. Energy & Infrastructure: A power-line work project near an Oliver County data center caused an I-29 traffic slowdown with temporary lane closures. Defense & Nuclear Security: Northrop Grumman won an $86.1M contract to maintain missile-silo monitoring systems across bases including Minot, with work running through 2031. Construction & Local Industry: MacQueen opened a new Bismarck service center to expand support for refuse and recycling vehicle fleets, adding faster local service and parts. Ag & Food Safety: A sprout recall expanded after an outbreak linked to sprouts; FDA says a common seed supplier is under investigation and additional lots may be implicated. Public Safety: Safe Kids Grand Forks shared back-to-school reminders for drivers, focusing on protecting young pedestrians near school zones and around buses. Health Access: A new analysis warns rural obstetrics closures mean longer drives for Medicaid patients seeking inpatient maternity care. Sports Facilities: The Fargodome faces a potential $22M funding gap that could cost about 1,000 seats if ADA-related upgrades aren’t fully funded.

Data Center Policy: North Dakota lawmakers are weighing how to manage data center growth, including local siting authority, energy demand, and environmental rules, after an AI and Data Center Committee meeting heard from regulators and industry leaders. Tax Incentives: A committee review found North Dakota’s sales tax exemption for data center equipment and software topped $65 million in 2025, with lawmakers studying how the incentive should evolve for the 2027 session. Agriculture & Biofuels: As Congress reconvenes, North Dakota producers are watching a stalled Farm Bill and an E-15 biofuel bill, both stuck in the Senate Agriculture Committee, with SNAP-related disputes a key sticking point. Ranching Support: USDA rolled out a new Ranchers First Initiative aimed at boosting herd growth and expanding risk-management tools after backlash over tariff-free foreign beef imports. Energy Prices: GasBuddy reported tight local price spreads in Steele, Burleigh, and Grand Forks counties for the week ending Aug. 22, with statewide regular averaging $3.93. SNAP Rules: North Dakota is set to tighten SNAP purchasing on Sept. 1, limiting “junk food” items like certain candy and sweetened drinks. Construction Finance: Lawmakers will consider a $35 million line of credit to finish North Dakota’s military gallery on the Capitol grounds, after construction halted earlier this year.

Navy Readiness: USS North Dakota (SSN 784) returned to operational service after a 40-month modernization at Portsmouth, while a new GAO report flags major submarine maintenance delays that cost the Navy thousands of attack-sub days and billions in idle sustainment. Carbon Storage Legal Fight: Summit Carbon Solutions asked North Dakota’s Supreme Court to drop two CO2 storage areas (Summit #1 and #2) and keep its appeal focused on Summit #3, a move landowners opposing the project say is a win. Energy Grid Policy: The U.S. Department of Energy halted a proposed Tribal Energy Access Corridor that would have helped reservations access transmission capacity in parts of North Dakota, South Dakota, and Nebraska. Agriculture Research: NDSU highlighted its 100-year-old Ceres wheat variety in 2026 research plots, showing big height differences versus newer lines. Trade & Diplomacy: Consul generals for Israel and Canada discussed how Midwest ties are strengthening—Canada remains a major goods-and-services partner, with agriculture a key driver. Local Energy Costs: GasBuddy price checks show midgrade and premium prices in North Dakota fluctuating week to week, with several counties reporting standout low offers.

Energy & Fuel Prices: GasBuddy reports show midgrade prices in Pembina County hitting a low of $4.06/gal (week ending Aug. 22), while Sargent County’s regular gas bottomed at $3.79/gal and Stutsman County’s E15 lowest was $3.59/gal—another reminder that pump prices in North Dakota can swing fast even as the statewide averages creep. Tribal Power & Transmission: The U.S. Department of Energy ended a proposed Tribal Energy Access Corridor that would have helped reservations in North Dakota and neighboring states move power to market, saying it wouldn’t improve reliability or lower costs. Oil & Gas Expansion: Callan Power LLC agreed to buy Williston Basin oil and gas leases and rename itself Reger Energy LLC, setting up a planned 23-well Red River formation program starting in 2027. Data Centers & Local Control: Rep. Julie Fedorchak is pushing for local decision-making on data center permitting and transparency on impacts like noise, roads, and energy, while supporting a federal ratepayer protection approach. Ag Economy Watch: Constellation Brands’ $100M investment aims to support barley farmers across Montana and the northern Plains, including North Dakota. Health Care Spending Signals: Medicaid billing data show Fargo’s “Administrative, Miscellaneous and Investigational” category jumped sharply in 2024, and Minot saw big growth in orthotic services—useful for tracking where public health dollars are flowing.