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Farmers argue about corporate laws
By New York Times
May 16, 2011
 

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.