MPR: Farmers React to Ventura's State of State Speech

Farmers React to Ventura's State of State Speech
By Mark Steil
March 2, 1999

While he talked about the state of the state being good, Governor Ventura spoke only briefly in his State of the State message about a segment of the Minnesota economy which is struggling: agriculture. The governor did increase the size of his proposed farm relief package to $60 million over three years. He also called for changes in the property tax system, which most farmers believe treats them unfairly.

See These Related Stories
Summary
Pictures
The Ventura Page
The Budget Page

MOST OF THE PROBLEMS FACING MINNESOTA FARMERS are caused by events state government cannot solve: the Asian economic crisis, a global grain-glut, too many hogs, too few export markets. But still it rankles southwest Minnesota farmer Irwin Raak that the governor seemed to ignore agriculture in calculating the state of the state.

Raak: He says the state of the state of Minnesota is great. I would say he's never come anywhere near a family farm.

Raak and his two sons raise hogs and milk cows on their farm near the South Dakota border. Milk prices have been good the past year, but hog prices have been terrible; far below a farmer's break-even point. Corn and soybean prices are also near or at historic lows. Raak lays the blame for the farm crisis on what he calls "corporate agriculture", large operations which produce grain, meat and dairy products so cheaply that family farms can't compete.

Raak: He did not address corporate takeover of agriculture either way. He was just totally mum on it. And that I guess is what would concern me the most about his speech: his absence of concern about such a humungous part of the Minnesota economy that is being devastated.

Raak says the governor's proposed 3-year, $60 million farm-relief package is too little to be of real help. One thing Raak liked was Ventura's praise for a group of farmers who want to start a hog-processing plant. Raak hopes the governor will support a proposed half-million-dollar state loan to get the project started. Property-tax reform was a major part of the governor's speech and that idea found a warm reception in the home of a southeast Minnesota farmer, Dan Gehling who farms near Grand Meadow.

Gehling: I've been told that we have the second-most-complicated property-tax system in the whole United States.

The governor says there is no logic to the property-tax system and Gehling agrees. Gehling says it was set up when farms were small and plentiful. That spread the tax burden around. Now Gehling says farms are larger and less numerous, meaning a few farmers pay most of the tax bill.

Gehling: Like a non-homestead acre in our township right now is $23. On a 1,000-acre operation that would be $23,000 a year in property taxes.

Gehling supports a bill introduced in the Legislature which would basically freeze property taxes at their current levels. Gehling says property taxes are one thing the state can do to help farmers. Although the governor was short on specifics, Gehling says Ventura's recognition of farm problems is a step forward.

Gehling: One thing that I liked to hear him say was this is not just a one year problem, this may take two or three years; makes me feel that he understands.

Having a governor who understands is little consolation to a farmer facing economic ruin. If the governor can deliver on his words, it could be the boost some need to survive.

Mark Steil covers southwest Minnesota for Minnesota Public Radio's Mainstreet unit. You can reach him at msteil@mpr.org.

	Sign up to receive e-mail newsletters

	Audio help

	Text: Sm : Md : Lg