"Future of Ag" funding among anticipated ND legislative issues

By Lance Gaebe, Executive Director, NDGGA

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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.

There will be little change in the makeup of the Agriculture Committees of the two chambers. Long-time chairman of the House Ag Committee, Rep. Gene Nicholas (R-Cando) will remain in that position. As well, no change is anticipated in the chair of the Senate Ag Committee, where Sen. Terry Wanzek, (R-Cleveland) has been seated.

The 56th ND Legislative Assembly will convene in regular session Jan. 5, 1999. Funding to carry out the multi-faceted objectives of the Commission on the Future of Agriculture will be discussed, with a $14 million enhancement to several budget areas including: Ag in the classroom, NDSU Experiment Station and Extension Service, Pride of Dakota and others. A separate legislative package related to the COFA contains non-appropriation items that address statute changes including clarification of the definition of a farm and property tax formula adjustments. The complete plan can be found on the Commission’s website: www. state.nd.us/cofa.

There will be a proposal to require commercial pesticide applicators to carry liability insurance for incidental drift damage to adjoining property.

Anticipate a proposal from the ND Farmers Union to create a state-supported wheat pool, with the expectation of higher returns for identity-preserved wheat and durum. A preliminary study from NDSU indicated that such a plan may be a tall order for spring wheat, although durum might be a better possibility, given cooperation from Canada.

During the 1997 Legislative Session, we were able to secure an additional $1.6 million for NDSU research and Extension initiatives. I think that we may be able to match or even surpass that effort this next session. Even though the governor requested 95% budgets from all state agencies including the university system this past summer, I believe that there is good support from the Governor and the Legislature to fund NDSU and its branch stations to their historic baseline budgets, and even to enhance those appropriations.

Adjustments to the operation of the State Board of Ag Research will be discussed. This is the board created in the last session to oversee the operations of the NDSU Experiment Station and to manage the Agricultural Research Fund (ARF), the pool of money created by a four cent check-off on off-road gasoline use. I anticipate an effort to include the Extension Service under the oversight of the SBAR. Moreover, there is some talk of shifting the funding mechanism for the ARF from off-road gasoline to an assessment on farm diesel. This discussion is a result of declining revenue expectations from farm gasoline and increased and more widespread use of diesel.

Property tax changes may be debated on several fronts: the valuation formula, including adjustments to irrigated land, as well as corn and soybean areas to increase the production cost variable in calculating land value. Also, the definition of livestock farm: a farm that does not raise at least 50% of its own feed needs could be assessed as a commercial operation rather than as a farm.

There may also be discussion on ways to augment federal farm economic assistance, although this may occur in some of the previously mentioned items. In any case, the NDGGA will be at the forefront of the ND Legislative Session, helping to educate lawmakers about the issues and solutions that mean most to grain growers in the state.

1999 MN Session: Learning curve for Ventura, GOP House

By Bruce Kleven, Legislative
strategist, MAWG/MBGA

The surprising election of Jesse "The Mind" (formerly "The Body") Ventura has capitol watchers buzzing with speculation. Among the top questions: "Can he govern an institution the size of Minnesota? Who will be part of his administration? What about assembling and leading the passage of a $23 billion, two-year budget? How will a third party Governor work with a legislature controlled by different parties?" These questions will slowly be answered over the next four years as history watches the Ventura administration closely, and with fascination.

The first order of business for the new Governor is to surround himself with capable staff members to conduct day-to-day operations. As of this writing, the Governor-Elect has chosen a transition team that will be responsible for hiring the Ventura administration personnel. There have been public announcements that an Agriculture Commissioner has been chosen, but the transition team has not made an announcement.

A large number of agriculture organizations in the state would like to see current Commissioner Gene Hugoson and his team remain on the job. By the time the legislative session starts on Jan. 5, 1999, the transition team needs to have most Commissioners in place for confirmation by the Senate and have a budget to present to the legislature. Ventura’s main task in the next six months will be leading the passage of that budget.

MN House changes hands

A second important event that happened in the Nov. 3 elections: the Minnesota House of Representatives changed hands from the Democratic-Farmer-Labor Party to Republican control for the first time since the 1985-86 session. Republicans gained seven seats and now control the House 71-63.

This change in parties has also produced a change in leadership. Republicans have chosen a new Speaker of the House, current Minority Leader Steve Sviggum (R-Kenyon). The new Speaker has also named Committee Chairs, including Rep. Tim Finseth (R-Angus) as the new Agriculture Committee Chair.

However, nothing has changed in the Senate, which is still controlled almost 2-to-1 by the DFL. Sen. Roger Moe (D-Erskine) is expected to remain as Majority Leader of the Senate, while Sen. Dallas Sams (D-Staples) will continue to Chair the Senate Ag Committee.

1999 MN Legislative Agenda

The change in the House leadership also indicates a new direction in policy. Many Republicans campaigned on promises of tax cuts in light of the recent budget surpluses. It remains to be seen whether they deliver, but given the seven-vote majority they now hold it seems a new direction in tax policy will be forthcoming, at least from the House. Also, the fact the two Houses are now controlled by different parties indicates that regardless of the issue or bill, some gridlock is inevitable.

The main job for the legislature in the upcoming session is passage of a $23 billion, two-year budget. This budget will include $1.6 million in funding to the U of M to continue scab research. The budget may also contain some type of farm crisis relief, but it is too early to tell what form it will take. One possibility is the continuation of the crop insurance premium rebate program authored last year by Sen. LeRoy Stumpf (D-Thief River Falls) and Rep. Jim Tunheim (D-Kennedy). At a minimum, there will be hearings in the Ag Committees on the current farm price situation.

Given the different party philosophies in the House and Senate, a compromise on the budget is going to be a long and tedious process which will leave little time for other stray policy bills. Those will have to wait until next year.

For both the new Governor and the new House leadership, getting a handle on leading government will be the first task. There will be many new people to educate on issues facing agriculture during the next two years. And, there is expected to be a lot of learning. As the Governor-Elect told reporters on election night: "It’s time to go back to school."

Value-added,
taxes on SD agenda

The tax assessment process will likely receive attention during the 1999 South Dakota legislative session, says Rick Vallery, executive director of SD Wheat Inc. License plate increases and a three-cent gas tax increase will also be discussed. There will be an ag bill under discussion concerning value-added agriculture; an attempt to establish a fund that will develop grants for marketing plans for new ag processing plants.

Web site offers kids peek into ag science

Helping kids use science to bridge the gap between agriculture and daily life is the aim of "Science For Kids," a new web site from USDA’s Agricultural Research Service. Geared to children ages 8 to 13, "Sci4Kids" is a series of interactive stories based on research projects featured in Agricultural Research, ARS’ monthly publication, and other news items. "We’re hoping children will use the site to gain a greater understanding of agriculture’s importance to their daily life-the food they eat, the clothes they wear, the water they drink," says Under Secretary of Agriculture for Research, Education and Economics I. Miley Gonzalez. "Today’s children are tomorrow’s farmers, scientists, policy makers and consumers. So it’s important that children have access to information about agricultural research that is significant and timely as well as enjoyable." The web site can be found at: http://www.ars. usda.gov/is/kids.