Young farmers need flexibility, not restrictions

Nebraskans, tired of large, out of state corporations getting into and out of farming when it benefitted boards of directors in distant cities, voted in Initiative 300 in 1982.

The constitutional amendment restricted non-family farm corporations from acquiring or otherwise obtaining an interest in any title to real estate used for farming or ranching, or engaging in farming or ranching in Nebraska.

The problem was, I-300 was finally found unconstitutional last year.

Now, the Legislature is considering LB1174, which attempts to address the issues on which I-300 was overturned, allowing residents of other states to own farms or ranches in Nebraska and still qualify as family farmers. It also gives consideration to people who have physical or mental impairments that prevent them from engaging in day-to-day labor and management of the farms.

It's an important issue to deal with at this time. Many farms are being passed from one generation to the next.

And, according to the Nebraska Farm Real Estate Market Survey, over the past five years, Nebraska farmland was worth $1,425 per acre on Feb. 1, 88 percent higher than in 2003.

That's because ethanol production has pushed corn and other crops into the profitable range, despite higher prices of energy and other inputs.

Farming is as attractive as it's ever been to big corporations.

However, according to a group of farming and business interests, LB1174 would do more harm than good.

For instance, according to Larry Smith of Ashland, president of the Nebraska Cattlemen, the law wouldn't prevent people like Ted Turner from continuing to buy land, and 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."

LB1174 "would needlessly limit family farmers' ability to secure capital," said Keith Olsen of Grant, president of the Nebraska Farm Bureau. "The capital intensive nature of agriculture -- not corporate farming -- is the major challenge to the continuation of the family farm."

Other opponents include the 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 and Nebraska Bankers Association.

In a joint letter issued Thursday, the groups said LB1174 "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."

The opponents are right. Today's challenges and business opportunities could not even have been dreamed of in years past, even as recently as 1982.

Abuses by corporations or individuals can be dealt with in simpler, more focused ways.