BISMARCK, N.D. (AP) -- Corporate
farming laws are causing a flap between some farmers in
North Dakota, which has some of the nation's strongest
statutes against the practice.
State Rep. Tom Brusegaard, a Republican
who farms near Gilby in rural Grand Forks County, is
proposing a bill that would allow limited corporate
investment in the state's farms.
Under current law, North Dakota limits
the practice to corporations with a maximum of 15 family
member shareholders.
That practice is meant to keep large
farm operations from being able to settle in the state.
Brusegaard's legislation would allow
anyone to invest in a family farm corporation, as long as
the primary investor continues to work the land.
Corporations would still be limited to 15 shareholders.
``We spend an extraordinary amount of
time bemoaning the lack of capital available for farming,''
he said. ''(Farmers) need capital. This is a vehicle to
allow them to get it.''
``Has the current corporate farming law
kept us from having larger farms? Fewer farms?'' Brusegaard
asked. ``No, it hasn't.''
Opponents said the measure will erode
North Dakota's strong anti-corporate farming laws with
unknown consequences.
Agriculture Commissioner Roger Johnson
said North Dakota has ways for farms to take outside
investors through limited liability partnerships.
He said letting corporations invest in
farms could lead to more power for agribusinesses that want
to control the prices that farmers get, and consumers pay.
``I believe this bill would exacerbate
that problem,'' Johnson said. ``What we really need is
responsible federal farm policy.''
He said the public does not view
corporate farms as kindly as it does family farms, and the
bill could hurt political support for farm subsidies. |