South Central District Judge Jackson Lofgren ruled Friday that parts of North Dakota’s law for nominating members to the state panel promoting the beef industry violate the state constitution, calling the process “arbitrary and unreasonable.” The decision impacts how six of the North Dakota Beef Commission's nine members are nominated.
Three cattlemen, Kenneth Graner, Michael Heaton, and Jeremy Maher, who serve as directors for the Ranchers Rights Initiative, challenged the law last year as unconstitutional. The state had sought to dismiss their claims, but Judge Lofgren heard arguments from both sides in a July hearing.
Judge Lofgren wrote that the law “deals out an advantage by name” by granting specific private entities the exclusive power to choose who may be considered for six seats on a public commission. The judge clarified that the law names specific organizations rather than listing criteria for entities to meet, thereby creating a closed class that prohibits others from participating. This naming of specific organizations to make nominations creates a special law that treats similar people and groups differently, which is prohibited by North Dakota’s constitution, according to the judge.
The North Dakota Beef Commission consists of nine members: three beef producers, one cattle feeder, one dairy producer, one representative of a public livestock market, and three at-large members. All are appointed by the governor. Six of these nine members previously required nomination by four cattle-related groups, including the North Dakota Stockmen’s Association, which was named in the law.
The Beef Commission oversees how money from the beef checkoff is used. This funding comes from fees on cattle sales, specifically $2 per head ($1 apiece to the state and federal government). The funds, which amounted to more than $1.5 million in assessment revenue for 2024-2025 according to an annual report, are primarily used for beef promotion, education, and research.
Challengers had argued the law favored certain private associations and created a “closed class” or differential treatment not allowed by the state constitution. The state maintained that the challengers lacked legal standing, waited too long to sue, and that the law applied equally to everyone without requiring membership in specific organizations. Judge Lofgren, however, wrote that even if specific qualifications existed, the law did not list them, basing its classification solely and arbitrarily on being a specific organization. The classification, he added, bore no relationship to the Commission’s purpose of promoting the cattle industry in North Dakota.
Attorney Robby Dube, representing the challengers, said the decision means the Beef Commission is now open to all in the industry. Dube also indicated the ruling could open doors for similar challenges to 20 other state boards with similar selection processes. He noted that individuals previously excluded because they did not pay dues to a specific trade group now have the opportunity to challenge such practices as illegal. Dube explained that the law maintains the industry-specific seats, but now anyone can nominate for them, and the governor can select from any nomination. He said the executive branch will need to update its nomination form, and while the Legislature is not required to act, it might consider making the selection process more democratic, possibly through elections rather than appointments.
Gov. Kelly Armstrong respects the court’s ruling, which provides his office additional discretion in appointing members to the Beef Commission, according to spokesman Mike Nowatzki. The North Dakota Beef Commission also respects the court’s decision, stating that the producer-led board will continue to invest Beef Checkoff dollars in promotion, research, and education programming. Executive Director Nicole Wardner stated that the commission is still evaluating the decision and has not yet decided whether to appeal to the state Supreme Court. The lawsuit named the commission, the state, and the governor.
North Dakota Stockmen’s Association President Tim Erbele stated his organization was pleased that the ruling recognizes the importance of beef promotion, research, and education, and leaves the North Dakota Beef Commission and beef checkoff program intact.
The ruling applies to future appointments, with Judge Lofgren clarifying that his decision does not prevent the Governor from accepting recommendations from any person or group, including the named associations. The judge did not rule in favor of the challengers on all points; he upheld an eligibility requirement that commissioners be barred from receiving a checkoff refund in the last three years. Judge Lofgren found that the Legislature can set time limits and conditions for this requirement, as lawmakers would rationally want commission members who have paid into the program to decide how to spend the funds.
