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SB 2150

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.

69th Legislative Assembly (2025-26) Introduced by Mike Beltz and 2 co-sponsors

SB 2150 tightens ownership and disclosure for authorized livestock farm corporations/LLCs in North Dakota, requires 100% U.S.-owned eligible owners and detailed annual filings.

Filed with Secretary Of State 03/18
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WeVote Research Nonpartisan
Bill Summary · SB 2150

Summary — SB 2150 (North Dakota, 2025)

Status: Introduced March 10, 2025; filed with Secretary of State March 18, 2025; read first time March 24, 2025; referred to committee (Health & Human Services per chamber actions). Sponsors: Senators Thomas and Luick; Representative Beltz.

Purpose

SB 2150 amends North Dakota Century Code provisions governing corporate and limited liability company (LLC) farming and ranching. The bill (1) clarifies the statutory definition of “farming or ranching,” (2) tightens eligibility and ownership rules for authorized livestock farm corporations and LLCs, and (3) expands formation and annual-report disclosure requirements for farming/ranching corporations and LLCs.

Key provisions (by statutory change)

  • Amends 10-06.1-01(7) — Definition of “farming or ranching”

    • Explicitly defines the term to include raising/producing crops, horticultural products, livestock, livestock backgrounding and finishing.
    • Lists activities expressly excluded from the definition: agricultural support services, aquaculture or greenhouse agriculture when acreage ≤ 40 acres (16.19 ha), beekeeping, timber/forest production, growing/processing marijuana under chapter 19-24.1, and contracting arrangements where a processor/distributor provides grain, harvesting, or other farm/ranch services.

  • Amends 10-06.1-12.2(3) — Ownership/eligibility for authorized livestock farm corporations and LLCs

    • Individuals who are shareholders/members must be U.S. citizens, U.S. permanent resident aliens, or an “authorized individual” under section 47-10.1-02.
    • Shareholders/members that are entities (non-individuals) and any controlling persons/organizations must be organized in the U.S. and 100% of the stock or ownership interests must be owned by eligible persons described above.

  • Amends 10-06.1-15.2(1)(b), 10-06.1-17(3)(d), and 10-06.1-17.1(3) — Formation and annual-report disclosure requirements

    • Require detailed, itemized statements of authorized and issued membership interests (by class and series as designated in operating agreements) for farming/ranching LLCs.
    • Require, for each shareholder/member: name/address; state of incorporation (if entity); number/percentage of shares or membership interests; percentage of voting shares/interests and existence of voting agreements; percentage of total capital/financial interests; whether individuals are U.S. citizens or permanent residents; whether individuals will be actively engaged in farming/ranching; and, for non-individuals, whether organized in the U.S. and 100% owned by eligible persons.
    • Annual reports for authorized livestock farm entities must include registered agent info and management details (officers, directors/managers and whether actively engaged).

Who is affected

  • Authorized livestock farm corporations and authorized livestock farm LLCs operating in North Dakota.
  • Prospective or existing corporate/LLC owners that are non‑U.S. organized or partly foreign‑owned—those arrangements would be constrained by the 100% U.S.-ownership requirement.
  • Service providers and legal/accounting professionals assisting these entities — increased disclosure and reporting obligations may raise compliance work and costs.

Potential impacts and considerations

  • Increased transparency in ownership, voting, and management of corporate/LLC farms.
  • Restricts ownership eligibility (effectively excludes partial foreign ownership and entities not organized in the U.S.).
  • May require restructuring of ownership arrangements or additional documentation to demonstrate compliance.
  • Exclusions to the “farming or ranching” definition clarify which activities fall outside the corporate/LLC farming rules (notably small-scale greenhouse/aquaculture and beekeeping).

Procedural/timeline notes

  • Introduced and filed in March 2025; currently in early legislative stages (referred to committee). The text cross-references section 47-10.1-02 (used to define “authorized individual”), which stakeholders should review for eligibility specifics.

Compiled from official sources — confirm details with the bill’s official record.

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