Nebraska groups join forces to fight LB 1174
NEWS RELEASE
March 20, 2008
For more information contact:
Jay Rempe 402.450.8069
Lincoln, NE - In a joint letter delivered to state senators, several Nebraska agricultural and business organizations have expressed strong opposition to LB 1174, the legislation designed to replace Initiative 300.
Groups signing the letter included the Nebraska Cattlemen, Nebraska Corn Growers Association, Nebraska Soybean Association, Nebraska Pork Producers, Nebraska Poultry Industries, Nebraska Chamber of Commerce and Industry, Nebraska Chapter of the American Society of Farm Managers and Rural Appraisers, Nebraska Bankers Association and Nebraska Farm Bureau.
The letter states that, if passed, LB 1174 “would have a detrimental effect on Nebraska agriculture, putting more regulations on family farmers at a time when they actually need more flexibility to secure capital support through a variety of business relationships.”
According to the letter, LB 1174 also limits the choices of retiring farmers in transferring their farm operations to younger generations, limits the opportunities for beginning farmers to enter agriculture and takes away several risk management tools that are important for family farms.
Keith Olsen of Grant, president of Nebraska Farm Bureau, said LB 1174 would do more harm than good for many family farms. “It would needlessly limit family farmers’ ability to secure capital,” Olsen said. “The capital intensive nature of agriculture—not corporate farming—is the major challenge to the continuation of the family farm.”
The president of the Nebraska Bankers Association, George Beattie of Lincoln, said another concern is that LB 1174 will result in further court action. “The 8th Circuit Court deemed Initiative 300 violated the provisions of the Interstate Commerce Clause. While LB 1174 attempts to remedy the legal defects of Initiative 300, the bill remains of questionable legal validity and would likely be challenged in court,” Beattie said. “A challenge will place a dark cloud over agriculture in Nebraska. The last court challenge cost the state nearly $300 thousand in legal fees.”
Todd Stuthman of Columbus, president-elect of the Nebraska Pork Producers Association, is concerned LB 1174 would limit the ability of producers to work together. “LB 1174 does not provide the flexibility needed for unrelated farmers or ranchers to combine their efforts and assets to address risk and opportunities in today’s agriculture,” Stuthman said. “The restrictions would be especially harmful to unrelated beginning farmers who want to pool resources, and retiring farmers who want the ability to transfer their businesses to younger farmers.”
In the future farmers will need to work together as the pool of labor continues to shrink, said Randy Uhrmacher of Juniata, president of the Nebraska Corn Growers Association. “Producers need the flexibility to work with non-family partners to build their operations and work for common goals,” Uhrmacher said. “Each farming operation has its own challenges, and needs to have access to business structures that fit their farm. Ag producers should not face any more operating limitations than any other business in the community.”
Rather than restricting business actions, Uhrmacher said senators should focus on creating opportunities for farmers and ranchers. He said bills like LB 1027, which enhances the Beginning Farmer Program; LB 895, which increases the tax credits granted under the Advantage Rural Development Act; and LB 1088, which increases the tax credits granted under the Advantage Microenterprise Tax Credit Act, would all help create opportunities for agriculture.
Larry Smith of Ashland, president of Nebraska Cattlemen, said LB 1174 attempts to address a problem that doesn’t exist. “Despite what proponents would have us believe, corporations are not taking over agriculture in Nebraska,” Smith said. “Ted Turner may be purchasing a lot of land, but this bill does nothing to address those actions. In fact, we find it ironic that LB 1174 would allow entities like Cargill and Murphy Brothers to operate in the state, but in many cases would not allow two neighboring, unrelated farmers to pursue a joint venture.”
Olsen said that, despite Initiative 300’s presence in the state’s constitution, Nebraska had 20 percent fewer Nebraska farms in 2006 than in 1985, according to the USDA. Olsen predicts more unintended consequences if LB 1174 becomes law.
“If that were to happen, we foresee more and more young people not being able to come back to the farm, even with current commodity prices,” Olsen said. “If we only allow related individuals to combine forces in agriculture, young people will have fewer opportunities in farming.
“Give us the ability to combine together and we believe farms will become more profitable and more environmentally friendly—which will help keep our rural communities vibrant and growing.”
