North Dakota has the most cost-effective successful agricultural value-added program in the country--the Agricultural Products Utilization Commission. This program has helped over 30 networks of farmers establish cooperative ventures for processing and marketing North Dakota agricultural products. The most well-known is the Dakota Pasta Growers Cooperative--which received start-up funds from APUC in 1991, began production in 1993 and now has 1000 farmer members, a $40 million facility, and produces 120 million pounds of pasta per year.

APUC distributes about $1.25 million per year in research, utilization and marketing grants to groups of farmers, often in collaboration with universities. Funding comes from Fuel Tax and Highway Tax.

APUC is designed to help get new businesses off the ground. Feasibility analysis, legal fees, hiring initial managers, and solving technical problems standing in the way of commercialization are typical.

APUC is supported by the Build North Dakota program which helps North Dakota communities explore the most appropriate development strategies. Once a community or group has come up with a strategy, APUC can help them develop the idea into a bankable project. The state-owned Bank of North Dakota and the St. Paul Bank of Cooperatives are among the sources of capital for bringing new agricultural value-added businesses on-line.

APUC has a very small staff (recently increased to 2) which mainly providew administrative help. The Department of Economic Development and Finance and other state agencies have been key in providing support for APUC activities.