Judge strikes down parts of North Dakota Beef Commission membership law

A North Dakota judge has ruled that the law for nominating people to the panel that promotes the beef industry violates the state constitution because it gives nominating power to specific trade groups and no one else.

“That is arbitrary and unreasonable,” South Central District Judge Jackson Lofgren wrote in his Friday decision.

Three cattlemen – Kenneth Graner, Michael Heaton and Jeremy Maher – who are the directors of the Ranchers Rights Initiative challenged the law last year as unconstitutional. The state sought to have their claims dismissed. The judge heard arguments from both sides in a July hearing.

Lofgren said the law “deals out an advantage by name,” granting the named groups “the exclusive power to choose who may be considered for six seats on a public commission.”

“By specifically naming private entities, rather than listing criteria for entities to meet to be eligible to submit nominations, (the law) creates a closed class that prohibits accession into it,” the judge wrote.

The Beef Commission consists of nine members, including three beef producers, one cattle feeder, one dairy producer, one representative of a public livestock market and three at-large members, all appointed by the governor. Six of the nine members are nominated by four cattle-related groups, including the North Dakota Stockmen’s Association, named in the law.

Naming specific organizations to make nominations creates a special law that treats similar people and groups differently and is prohibited by North Dakota’s constitution, the judge wrote.

North Dakota judge weighs decision in Beef Commission membership lawsuit

The Beef Commission decides how to use the money raised from fees on cattle sales of $2 per head – $1 apiece to the state and federal government – known as the beef checkoff. The money is mainly used for beef promotion, education and research. The commission raised more than $1.5 million of assessment revenue in 2024-2025, according to an annual report.

The challengers said the law favors certain private associations and creates a “closed class” or different treatment that is not allowed by the state constitution.

In a statement Tuesday, the Ranchers Rights Initiative said: “For years, independent cattle producers were barred from serving on the NDBC because of the Stockmen’s Association’s complete control over nominations. The North Dakota Legislature rejected multiple attempts to correct and reform the law. Today, that barrier has finally come down.”

The state had argued the challengers lacked legal standing for their claims and waited too long to sue, and that the law applies equally to everyone and doesn’t require membership in specific organizations.

The judge wrote: “Even if there were specific or unique qualifications that only these organizations have, (the law) does not list these requirements or qualifications; it just names the organizations. The classification is based solely and arbitrarily on being a specific organization. Thus, the classification in (the law) bears no relationship to the Commission’s purpose of promoting the cattle industry in North Dakota.” 

An attorney for the challengers said the decision means the Beef Commission is now open to all in the industry and opens doors to 20 other state boards with the same selection process.

“If you’ve been excluded because you weren’t willing to pay the dues to join some trade group, you now have the chance to say, ‘Hey, that’s illegal. You need to stop doing that,’” attorney Robby Dube said.

The law keeps the industry-specific seats but now anyone can nominate for them, and the governor can pick from any nomination, Dube said. The executive branch will have to change its nomination form, he added. The Legislature doesn’t have to take action, but might consider how it could make the selection process more democratic, perhaps by election and not appointment, he said. 

The ruling applies to future appointments. The judge made clear that nothing in his decision “prevents the Governor from accepting recommendations from any person or group, including the named associations.”

Gov. Kelly Armstrong “respects the court’s ruling, which provides the Governor’s Office additional discretion in appointing members to the Beef Commission,” spokesman Mike Nowatzki said via email.

The North Dakota Monitor left phone messages seeking comment for Commission Executive Director Nicole Wardner, Chairman Brian Amundson and a spokesperson for the Stockmen’s Association. The association president planned to put out a statement Tuesday afternoon.

The commission could appeal to the state Supreme Court.

The judge did not decide everything in the challengers’ favor. They said an eligibility requirement that commissioners are barred from receiving a checkoff refund in the last three years is punitive and discriminatory. Lofgren said the Legislature can set the time limit for the requirement and conditions to the refund. He said lawmakers would rationally want commission members who have paid into the program to be deciding how to spend the money.

Reach North Dakota Monitor reporter Jack Dura at jdura@northdakotamonitor.com. 

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Courtesy of North Dakota Monitor