Agri News
Tuesday, March 16, 2004

Editorial:
Deep-six Alien Ownership; move on to better bills

Sometimes bad ideas won't go away. That's certainly the case in the Minnesota Legislature, where the so-called "Alien Ownership'' bill has come back to life after suffering a bitter defeat last session. The bill, Senate File 717, was presented to the Senate Judiciary Committee last week. It would allow holders of E-2 non-immigrant investment visas to own farmland in the state.

Since Minnesota law already allows immigrants who are permanent resident aliens to own farmland, it's obvious the bill is an attempt to invite foreign investors to bankroll dairy operations.

The earlier version gained the support of the Minnesota Department of Agriculture, the Farm Bureau, Minnesota Milk Producers and others. Opponents included the Land Stewardship Project, Farmers Union and a handful of other organizations.

It's not expected either side will change their positions on the Alien Ownership bill.
What seems to have changed this legislative session is that both Republicans and Democrats have come forth with innovative ideas to help the dairy industry in particular and the livestock sector in general.

Senate File 1941 is one example. It would provide beginning dairy farmers who haven't previously owned more than 20 cows within the past five years to receive incentive payments. The payments would amount to $1 per hundredweight for the first 1 million pounds annually for five years. Payments would be capped at $10,000 annually for a total of $50,000. This legislation would be an immediate help to dairy farmers and would likely increase milk production in the state, which is needed to maintain production facilities.

Grove City Republican Dean Urdahl has introduced five bills this session that would help producers modernize their facilities to better compete in the industry. The representative's package includes investment tax credits for producers, $1 million in additional funding for the dairy program, a dairy equipment modernization grant program, a dairy operation investment tax credit, and tax credits for farmers who produce high-quality milk.

Other proposals currently alive in the Legislature would provide money for some producers who add a handful of cows to their herds. These financial incentives won't hurt Minnesota's budget situation and show dairy producers the state is serious about supporting the dairy industry. Evidence suggests -- check out the successes found in the rapidly expanding ethanol industry in the state -- that incentives do work.

For too long, the Legislature and so-called industry leaders sat on their hands and did nothing while dairy deteriorated in the state. Worse, for a time many in leadership blamed dairy producers for causing their own problems due to management inefficiencies. The industry speaks often of the need to grow all sizes of operations in the state. The initiatives introduced thus far in the Legislature can do just that.

Bringing back the Alien Ownership bill doesn't help at all. Worse, it sends the message to Minnesotans that we are more interested in attracting investors than helping producers who have been paying taxes in this state for years. The Legislature should deep-six Alien Ownership.

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LP Press Release, March 10, 2004: Bill Allowing Foreign Investors to Own Minnesota Farmland Resurfaces

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