This project was initiated to determine what potential exists in North Dakota to expand livestock production without seriously affecting crop production. Also, there was interest in determining if various types of governmental agricultural programs would be needed or even useful in encouraging livestock production. Funding for this project was provided jointly by the Economic Research Service, U.S. Department of Agriculture, and the North Dakota Agricultural Experiment Station. This report will hopefully be useful both to producers in the study area and to public policymakers concerned with the grain and livestock economy.