June 1997
A Whole New Landscape For ND Ag Research
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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.
by Lance Gaebe, Executive Director, North Dakota Grain Growers Association
Agriculture, and in particular agricultural research, did well during the 1997 North Dakota Legislative Session. Ongoing crop disease and insect problems across the state were recognized by lawmakers as they appropriated an extra $1 million beyond the governor's recommendation for NDSU research and extension.
North Dakota lawmakers also created a $2 million Agricultural Research Fund which will be financed by a four cent "checkoff" on the farm gas tax refund.
The Agricultural Research Fund is the brainchild of legislative leaders Jack Dalrymple, Chairman of the House Appropriations Committee, and Gene Nicholas, Chairman of the House Agriculture Committee. The concept developed from frustration at the inability of legislative budgeting to anticipate research needs over a two-year biennium.
With the inception of the State Board of Ag Research, farmers will have more control than ever before over how agricultural research is managed and prioritized. The Board, with producers well represented, will consist of 15 members at the outset, including: the president of NDSU; vice president of agricultural affairs at NDSU; the administrator of the agricultural experiment station; five individuals appointed by the ND Ag Coalition; and five individuals appointed by the Extension Service's multicounty program units. Two representatives representing the research extension centers will serve through June of 1998.
Proponents feel that farmer involvement on the research board is key in helping to ensure that research projects reflect the needs of production agriculture in North Dakota.
The Agricultural Research Board will distribute the $2 million fund based on a ranking of commodities' financial returns in the state. Seventy percent of the fund will be directed to crop commodities that account for at least 2% of the gross sales of the commodities produced in ND. Eighteen percent will be dedicated to research in animal agriculture. And in a move to recognize the importance of alternative crops and livestock, 12% of the fund will go toward research projects for new and emerging agricultural commodities.
The Research Fund will be awarded by individual commodity councils and commissions as grants for specific research projects (each commodity will have its own research committee which will review individual grant applications). Commodities interested in utilizing the research fund dollars will apply for them on a competitive basis.
The bill's language states, "The state board of agricultural research shall solicit proposals for research from the public and private sectors and shall appoint committees to review the proposals and award the agricultural research grants on a competitive basis." The legislation also encourages the commodity groups to commit matching funds for grants whenever possible.
The research fund that the State Board of Agricultural Research will appropriate will come from a 4-cent reduction in the gas tax refund. Initially, there would have also been a $500,000 transfer from the state ethanol incentive fund to the ag re search fund, but that was amended out prior to final approval of the bill. Therefore, money will not begin to accumulate in the fund until the end of the calendar year 1997 when producers can first begin filing for their gas tax refund.
Farmers are able to apply for 20 cents per gallon tax refund for off-road gasoline use. Of that refund, four cents will be "checked off" for the new research fund, one cent goes to the ethanol fund, two cents to the Ag Products Utilization Commission, and one cent for a township road distribution fund. After these deductions, the farmer receives the remaining 12-cent per gallon refund.
As there is now much resting on the gas tax to build up the coffers of research, proponents will undoubtedly be encouraging all ND ag producers to apply for the gas tax refund. If producers do not apply for the refund, the 20 cents per gallon will remain in the highway department fund.
In addition to appropriating the research fund, the State Board of Agricultural Research will be responsible for the budgeting, supervision, and policy-making responsibilities associated with supervision of the NDSU Experiment Station. Furthermore, the Board shall advise the director of the NDSU Extension Service regarding the dissemination of research information and extension education programs. n