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Hubert H. Humphrey      Response 9

Question 9: Describe briefly what you feel is the greatest challenge facing Minnesota farmers right now. Outside of lobbying the federal government for support, specifically describe three actions, programs, or laws that you would support as governor to meet the farm crisis. If your programs involve new state expenditures, how would you pay for them?

Agriculture has always been the lifeblood of this state's economy.
That's why it's important that we rally behind farmers and rural
Minnesota. The current crisis hitting rural Minnesota is the result
of 1940's era commodity prices that can't cover 1990's production
costs. These low prices are due from record production, reduced
demand Asia and eastern Europe, and by foreign governments that
restrict our access to their markets while providing excessive
subsidies to their own farmers.

While some may believe there is a little a governor can do to affect
thes= e factors, I believe the opposite is true. A governor can make
a real difference for rural Minnesota, if he understands the realities
of life outside the Twin Cities and is committed to use his office to
help agriculture and rural Minnesota reach its full potential.

The first action to help the agricultural crisis is to
postpone the November, 1998 property tax payments for farmers in
crisis-stricken counties. The next step is implement over $300 million
in permanent property tax cuts for all of Minnesota, followed by
additional permanent property tax relief if economic forecasts permit.
Those two steps will help ease the financial burden faced by many of
this state's farmers and rural residents, and form the foundation for
a more vibrant and dynamic economy throughout Minnesota.

The next governor must also take steps to increase long-term demand
for agricultural products within the state by supporting the creation
of new opportunities for value-added agricultural industries. Not
long ago, most of the corn produced in Minnesota was shipped out of
state for processors and dealers elsewhere to add value and reap the
reward. But today, Minnesota has eleven ethanol plants that produce
renewable energy, increase the price of corn for Minnesota
producers, create thousands of new jobs and have spurred more than
$100 million in net annual economic activity in rural Minnesota.

There is tremendous potential for Minnesota to repeat this success
story with other agricultural commodities be it livestock, soybeans,
corn or vegetables and other farm products. The tax cuts and
initiatives I've proposed to help Minnesota's family farms and rural
communities are all included in the detailed and fiscally responsible
balanced budget plan I proposed in August.

The opportunities for rural Minnesota are limited only by the next
governor's willingness to lead. Our priorities must include:
actively marketing Minnesota grown products worldwide; improving our
agricultural research capacity; bringing the latest communications
advances to rural communities; providing a world-class education for
rural students; and finding competitive alternatives to factory
farming that are good for our rural communities and our environment.

The next governor must fight for family farms and get strongly behind
rural Minnesota. This isn't just about losing family farms, it's
about losing businesses and jobs in our small towns and our big cities
that depend on agriculture. It's about providing opportunities for
working Minnesota families throughout our great state. And frankly,
it's about a way of life that has been pretty darn good to all of us
in Minnesota.