House Agriculture and Food Finance and Policy Division  2/13/20
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House Agriculture and Food Finance and Policy Division 2/13/20


>>GOOD MORNING L CALLED TO ORDER THE AGRICULTURE AND FOOD FINANCE AND POLICY DIVISION. WELCOME BACK EVERYONE SETS A ROCK AND ROLL HERE; WE’VE GOT LOTS OF THINGS TO DO IN A SHORT AMOUNT OF TIME AND I’M OVER THE COURSE OF THE NEXT COUPLE OF MONTHS; BUT I’M GLAD TO SEE EVERYBODY BACK. WE DO HAVE JUST AT THE BEGINNING HERE WE HAVE A COUPLE OF MINUTES PACKETS ARE IN THE PACKET SO WE NEED TO APPROVE THOSE I’M GOING TO. SO IF THAT REPRESENT THE BRAND THE FIRST SET WHERE THE ONE IS FROM 2019 ACTUALLY.>>A MOVE THE MINUTE SPAN OF CHAIR FOR ME 20 SECONDS TO THE 19.>>THANK YOU AND THE REASON WHY WE HAVE THESE MAY 22TH 2019 THIS WAS A REVIEW OF WHAT THE A BILL WAS GOING TO BE THE FINANCE BILL AND WE DID IT IT WAS AFTER REGULAR SESSION. I’M KIND OF WHEN WE WERE IN THAT LIMBO PERIOD AND BEFORE WE ACTUALLY WENT TO THE FLOOR WITH IT SO I 70 THE CORRECTIONS OR ADDITIONS ALL IN FAVOR SAY AYE I OPPOSED NAY FOR THE MOTION FAILS THOSE MINUTES ARE DOT THAT AND THEN I REPRESENT A BRAND.>>AND CHAIRMAN OF THE MINUTES FROM 1/27/2001.>>THANK AND THOSE ARE THE MINUTES THAT WE HAD THAT BEFORE OUR MEETING THAT WE HELD RIGHT FOR THIS SESSION BEGAN. WHEN WE TALKED A LOT CLIMB THE CHAINS WHAT THE DEPARTMENT IS DOING HAD A PRETTY COMPREHENSIVE DAY OF ANY CORRECTIONS ADDITIONS FOR THOSE MINUTES SEEING NONE ALL IN FAVOR SAY AYE OPPOSED NAY THE MOTION PREVAILS THOSE MINUTES ARE ADOPTED. THANK YOU VERY MUCH. TODAY WE ARE KIND OF I’M GOING BACK INTO KNOWING WHAT WE HAVE ACCOMPLISHED OVER THE INTERIM IN A MAYBE IS LESS ABOUT ASKED THE PEOPLE THAT ARE GOING TO BE PRESENTING OBVIOUSLY BECAUSE THEY’RE THE ONES THAT DID SOME WORK. WE MIGHT HAVE ENCOURAGED THEM TO DO SOME THAT WORK. SO WE’RE WE’RE HAPPY TO BE ABLE TO HEAR ABOUT IT. SO WE’RE GOING TO HEAR FROM THAT PART OF A ON VERY THE DA I R PROGRAM THE HAM. RULES AND HOW HEMP IS HAS BLOSSOMED AND EMERGING FARMERS AND THEN ALSO TODAY WE ARE FORTUNATE TO HEAR FROM THE CENTER FOR RURAL POLICY AND DEVELOPMENT THEY’VE THEY’VE BEEN WORKING ON SOME THINGS AS WELL AND SO WE’RE EXCITED TO HEAR FROM THEM. THAT BEFORE WE BEGAN THAT WE DO HAVE PEOPLE IN THE AUDIENCE THAT ARE FROM MINNESOTA FARMERS UNION. IT IS THEIR DAY ON THE HILL; SO YOU KNOW AS MANY OF THEM THAT COULD BE THAT CAME TO THE WEATHER. WE’RE ABLE TO COME TODAY AND WE APPRECIATE THAT THERE IN THE AUDIENCE SO THANK YOU FOR BEING HERE. SO WE’RE GOING TO WITH WE’VE GOT ASHLEY PRESS AND AND MAKE OR THE LEFT ARE GOING TO BE TALKING INFORMATION AND THE DAIRY PROGRAM AND JUST A REMINDER FROM PEOPLE. WE DID FUND OF A BIG CITY SIGNIFICANT PORTION OF THAT OUT OF THE EGG BUDGET. BUT WE ALSO HAD SOME MONEY JOBS AND ECONOMIC FINANCE COMMITTEE AND SO WE WANTED TO HEAR FROM THE DEPARTMENT ABOUT HOPEFULLY THE SUCCESS OF THAT THE NUMBER OF PARTICIPANTS 10 AT 10 HOW THAT WAS REALLY ROLLED OUT IN WHAT WAS DONE WITH SO WE’LL START WITH ASHLEY AND HERE ABOUT THAT SO WELCOME TO THE MANY AND JUST INTRODUCE YOURSELF AND THEN YOU CAN GO AHEAD AND BEGIN YOUR PRESENTATION RIGHT GREAT.>>THANK MY NAME IS ASHLEY I SUPERVISE THE GRAND SCHEME AT THE AN EGG MARKETING AND DEVELOPMENT IS THAT BEIJING AND IN THAT CAPACITY; I’M I’M RESPONSIBLE FOR A NUMBER OF A GREAT PROGRAMS; INCLUDING THE DAIRY ASSISTANCE INVESTMENT AND RELIEF IN IN INITIATIVE. BUT WE OFTEN REFER TO AS A DAIRY AND AND I. AS YOU MAY NEAR THE END OF THE LAST LEGISLATIVE YOU PROVIDE YOU THAT’S PRO PROGRAM FOR US TOO MINISTER THROUGH THAT A GREAT DEAL. THROUGH THROUGH THAT BILL YOU PROVIDED US WITH 3 MAIN PARAMETERS FOR THE PROGRAM. THE FIRST BEING THAT PRODUCERS WHO ARE ELIGIBLE FOR THIS PRO PROGRAM MUST ENROLL FOR I’VE YEARS OF COVERAGE UNDER THE FEDERAL DAIRY MARGIN COVERAGE FOR PROTECTION PROGRAM. A TOP RATED THROUGH USDA FARM SERVICE AGENCY. YOU ALSO LIMITED IN THE ROMAN TO PRODUCE IT’S OUR FARMS THAT PRODUCE LESS THAN A 160;000 HEAVY WEIGHT OF MILK IN 2018. THIS IS ROUGHLY THEY EAT PRIVILEGE OF ABOUT 750 COWS AND ALSO TOLD US THAT WE HAVE THE ABILITY TO BASE. KATE PAYMENTS SPACE AND ABOUT 55 BASED ON 50;000 HAVE HEAVY WEIGHT OF MILK. IT WAS PRODUCED IN 2018 THIS IS ROUGHLY THE EQUIVALENT OF ABOUT 232 COUNTS. ALSO THROUGH THAT EGG YOU PROVIDE THE FUNDING FOR THE PROGRAM. SURE FISCAL YEAR 2020 TO 2021 ANGRY BUDGET YOU GIVE US THE AUTHORITY TO USE UP TO MILLION AT A BAKERY FOR THIS FOR THE JOBS BILL CONDITIONAL $3 MILLION BUT THE PROVIDED FOR TRANSFER TO THE AN NDA FOR THE PROGRAM. BOTH OF THESE FUNDS ARE ONE-TIME FUNDING ONLY AVAILABLE TO US IN FILTH IN THE FISCAL YEAR 2020. ALL ALL TO GO 3RD THIS MEANS THAT WE HAD A BUDGET OF ABOUT $8 MILLION FOR THE PROGRAM. BASED UPON THAT 8 MILLOT MILLOT MILLION THE OTHER A PROPER IHSAN AND WHAT WE KNOW ABOUT DAIRY FARMS IN MINNESOTA; I’M SUCH AS THE SIZE OF THEM AND THE NUMBER OF THEM. WE DETERMINED THAT IT ALL ELIGIBLE PRESIDENT PRODUCERS AND ROLLED IN PROGRAM UM WE WOULD BE ABLE TO COME THAT WE WOULD BE ABLE TO CONFIDENTLY ISSUE CHECKS. INDEED INDEED IMMEDIATELY FACE I JUST $0.10 PER 100 WEIGHT SO BASED UPON THAT 5TH 50;100 WEIGHT MAXIMUM THAT MEANS NOT FIRST-ROUND THE MAXIMUM CHECKED BEFORE 5. AFTER WE COMPLETED THE FIRST WE’VE COME TO THAT DETERMINATION THAT WE CAN ISSUE A SECOND ROUND OF CHECKS BASED UPON $0.13 PER 100 WEIGHT SET SECOND MAXIM CHECK IT CAN BE FOR 65 $100 TO TALK MORE ABOUT THAT IN A MOMENT. I’M A LITTLE BIT ABOUT OVER TIME AS YOU MAY RECALL THE PROGRAM CAME TOGETHER PRETTY QUICKLY AT THE END OF THE LEGISLATIVE. SESSION AND WE’RE ABLE OPEN THE APPLICATION BEFORE THE END OF FISCAL YEAR 19 SO THE MIDDLE OF JUNE. WE GOT THE APPLICATION OPEN. HE LOOKED VERY VERY CLOSELY WITH INDUSTRY PARTNERS AND OUR FRIENDS AT THE USDA FARM SERVICE AGENCY TO PUT THIS TOGETHER AND MAKE IT AS EASY AS POSSIBLE ON OUR THROUGH THE APPLICATION BS OUR PRODUCERS TO SUBMIT FOR PRETTY SIMPLE THINGS TO US; I’M A ONE PAGE DAIRY WITH IT I UP APPLICATION A COPY OF THEIR DMC ENROLLMENT FORM THAT THEY GET FROM THEIR LOCAL FSA A COPY OF THEIR 2018 PRODUCTION RECORD FROM THEIR MILK PROCESSORS AND THEN A COP THE OF THEIR W 9 SO WE CAN GET THEM SET UP IN THE STATE’S BENDER SYSTEM. SOON AFTER THE START OF THE FISCAL YEAR THAT FUNDS ARE MADE AVAILABLE TO US WE ARE ABLE TO START ISSUING PAYMENTS. THAT WAS MIDDLE OF JULY. THE FOR BE A CLOSE UP LOOK HAITIAN PROCESS ON OCTOBER 8 AND WE DID IT EXTEND THIS ONCE UP FROM OCTOBER 1ST BECAUSE USDA EXTENDED THEIR ENROLLMENT DEAD THAT LINE AS WELL. OUR FIRST FROM PAYMENTS WERE COMPLETED BY NOVEMBER 4TH SO ANYBODY WHO HAD SUBMITTED A COMPLETE APP APPLICATION WAS PAID BY THAT POINT. FROM THE SAME TIME THAT WE’RE STARTING TO REALIZE THAT THERE ARE A NUMBER OF DAIRY PRODUCERS WHO INTENDED IN ROLE IN THE PROGRAM. BUT FOR ONE REASON OR ANOTHER WERE NOT ABLE TO WHETHER THEY SIMPLY FORGOT THEY DIDN’T HAVE A COMPLETE. AND ONE THING OR ANOTHER. SO AT THE END OF DECEMBER WE RE OPEN APPLICATION PERIOD FOR JUST 2 THAT AND WITH WITH THE UNDERSTANDING THAT THOSE PRODUCERS WHO APPLY DURING THAT PERIOD OF TIME THE ONLY BE ELIGIBLE FOR THE SECOND PAYMENT. AND THEN I’M HAPPY TO REPORT THAT ABOUT A WEEK AGO BE HAVE STARTED TO ISSUE A SECOND ROUND PAYMENTS. SO FAR BE BEEN ABLE TO SHE’LL AND ARE WITHIN THE NEXT COUPLE OF DAYS RIGHT AROUND A 100 8.80 OF THAT WITH. SO GOING BACK TO AROUND ONE A LITTLE BIT WE HAD ON JUST ABOUT 1800 PRETTY IT PRAY PRODUCERS GET IN INVOLVED. THEY’RE BOTH PRODUCERS REPRESENT ABOUT 1550 FARMS. SO THAT COULD BE A LITTLE BIT CONFUSING WHY THAT THIS DISCREPANCY IS THERE BUT WE HAVE A NUMBER OF FARMS OF THAT ENROLLED IN THE END SEE I’M WITH LIKE TO PITCH WITH 2 KEY PARTIES INVOLVED ON THAT POLICY FARM SO I MEAN TO BE A SITUATION OF A HUSBAND AND WIFE MIGHT BE IT MIGHT GRANDFATHER FATHER AND THE SON WHO ARE ALL FARMINGTON SO MUCH CASE THE PAYMENTS WERE 3 SPLIT ACCORDINGLY. IT’S ALSO INTERESTING TO NOTE THAT FOR MANY OF THESE PRODUCERS. THIS WAS THEIR FIRST TIME HAVING A FIGHT FINANCIAL TRANSACTION; A STATE WHICH IS WHY WE NEEDED THOSE W NINES AND AND WE HAD GET MOST OF PRODUCER SET UP IN THE STATES ACCOUNTING SYSTEMS. ALL ALL TOLD THE ISSUE JUST ABOUT MILLION IN PAYMENTS TO THOSE 1800 PRODUCERS ARE MINIMUM CHECKLIST JUST ABOUT 26 $6 STILL A FAIRLY SMALL FARM THERE AND A MAXIM TEXAS WHERE $5;000 AGAIN THAT’S BASED UPON THE 10% THAT $0.10 PER HON 100 WAIT UP TO 50;100 LATE. OUR AVERAGE CHECK THEM OUT; BUT JUST UNDER 1900 $100. AS I MENTIONED BE REOPENED ENROLLMENT FOR AROUND 2 THE END OF DECEMBER. ALL OF THOSE PRODUCERS WHO SUCCESSFULLY ENROLLED IN ROUND ONE ARE NOT REQUIRED TO SUBMIT ANY ADDITIONAL TAPE PATE PAPERWORK. BUT WE WANTED TO SURE THAT THOSE PRODUCERS WHO MISSED OUT HAD ONE FINAL OPPORTUNITY TO DO SO. BEFORE ISSUING SITE SECOND PAYMENTS. WE HAVE A VERIFIED; PRETTY GOOD TEACHERS IN ENROLLMENT OUR 5 YEAR IN ROME AND IN THE VERY MUCH IN COVERAGE CREDIT. PROTECTION AGAIN FSA HAS BEEN WONDERFUL TO WORK WITH THROUGHOUT THIS. THE EXPECT A CALL AROUND 2 P PAYMENT WE’RE GOING TO BE ABOUT $4.5 MILLION AND AGAIN THAT’S BASED UPON $0.13 PER HUNT. HUN 100 WEIGHT ALL TOLD WE EXPECT OUR TEAM IT’S BETWEEN ROUND ONE AND ROUND 2 TO BE ABOUT MILLION OF THE MILLION THAT’S MADE AVAILABLE TO US. ONE QUICK EXAMPLE OF WHAT THIS MIGHT LOOK LIKE FOR A PRODUCER IF THIS IN THIS MOCK EXAMPLE IT. WE HAVE A PRODUCER PRODUCE YOU KNOW BY OUR 50;100 WEIGHT OF MILK IN 2018. IN ROUND ONE THEY WOULD HAVE RECEIVED A PAYMENT OF $5;000 AND AROUND 2 THEY CAN LOOK FORWARD TO THE PAYMENT OF 65 $100 BUT FARM BUT RECEIVED A TOTAL PAYMENT OF 11;500 $100 WHICH IS THE MAXIMUM ANY SINGLE FARM CAN RECEIVE IN THE PROCESS OF ISSUING THOSE SECOND PAYMENTS AND WE HOPE TO HAVE THOSE COMPLETED IN THE NEXT LIKE PROBABLY 6 TO 8 WEEKS OR SO. WITH WITH THANK YOU FOR THE OPPORTUNITY TO TALK WITH YOU ABOUT THERE. AND I’M HAPPY TO TAKE ANY QUESTIONS THANK YOU MISS WE GET SOME QUESTIONS REP CENT OPPOSED HIM.>>THANK YOU MADAM MRS PERSON I I’M LOOKING BACK A COUPLE PAGES IT SAYS ROUND ONE THAT WORKS ON THE TOP AND YOU SHOW A PARTICIPATING PRODUCERS 1800 AND HATING FORMS 1550 CAN YOU KIND OF EXPLAIN THAT CHART.>>MATT MATT MATT MADAME CHAIR; A BRETT REPRESENTATIVE ON.>>THAT GOES BACK TO HOW PRODUCERS CHOSE TO ENROLL IN THE EMCEEING. THE DNC ENROLLMENT FORM ALLOWED FOR THERE COULD BE MULTIPLE PRODUCERS OR I THINK THE METS CO-SIGNERS COLE OWNERS. SO THAT MIGHT MEAN OFTEN TIMES THAT. FIRST AN GENERATION ON 60% OF THE FARC THE SECOND GENERATION; 40% FOR WAYS BUT THEIR PIECE OF IT AND IN THAT WAY.>>MAKES PERFECT SENSE. THANK YOU; THANK REPRESENTATIVE ANDERSON. MISTER COFFEY. THIS WE HEARD SOME TALK ABOUT OTHER TYPES OF PROGRAMS THAT THE FTC IS NOT THE EASIEST AGENCY TO GET A SHARE INFORMATION WITH HOW DID YOU FIND THE EXPERIENCE OF WAR WITH THEM IN GETTING THIS PROGRAM OFF THE GROUND. MR. S.>>MADAM CHAIR REPRESENTATIVE ANDERSON UP TRIPOLI ALONG THE WAY THEY WERE WONDERFUL TO WORK. EVERYBODY THAT WE WORK WITH IN THAT IN THE STATE OFFICE WHAT’S GREAT AND WE HAD WONDERFUL RELATIONSHIPS WORKING WITH. COUNTY STAFF AS WELL AND THAT WAS NECESSARY.>>THANKS AGAIN TO BE JUST A LITTLE CONFUSION ON MY PART TO THE FARM SIGNED UP. FOR ROUND ONE AND GOT THEIR MAXIMUM OF $5;000. WHAT WAS ROUND 2 FOR WAS THAT FOR AN ADDITIONAL 50;000 POUNDS OF PRODUCTION OR EXPLAIN WHY THAT WHEN THE 2 PAYMENTS IF A FARM SIGNED UP. HIS RESTAURANT.>>REPRESENTED THE CAR MAT MADAME CHAIR REPRESENT OF AN ANDERSON.>>IN EACH IN EACH ROUND ONE AND ROUND 2 PRODUCERS FOR ELIGIBLE FOR UP TO 50;000 POUNDS. SO EVEN I’M A VERY LARGE FARM WITH BOTH ROUND ONE AND ROUND 2 WERE BASED UPON 50. 1100 AND ARE GREAT AND LOOK FOR A SMALL FARMS WOULD PAYMENTS IN. BOTH ROUND ONE AND ROUND 2 BASED UPON THEIR TOTAL PRODUCTION IN 2000 18 WE DID WE SPLIT THIS UPBEAT BETWEEN 2 ROUNDS SO THAT THOSE PRODUCERS BECAUSE WE KNEW IS VERY IMPORTANT TO THE PRODUCERS THEY GET A BOOST CHECKS INTO THEIR HANDS AS SOON AS POSSIBLE. IT WOULD HAVE DELAYED THE PAYMENT PROCESS CONSIDERABLY IF WE WOULD HAD TO WAIT WE RECEIVED ALL OF THE APPLICATIONS AND THEN DETERMINED IF PAYMENT AMOUNT.>>THAT’S IN ADVANCE AND THIS ONE MORGAN THANKS MADAME PROGRAM WENT WENT VERY WELL THE ONLY NEGATIVE FEEDBACK HEARD WAS THAT DIDN’T. WANT TO SIGN UP TO 5 YEARS OF THAT DAIRY MARGIN PROTECTION PROGRAM AND UNDERSTAND THE REASONING WHY. UNDER THE SUPPOSITION THAT WE MAY DO THIS AGAIN SOMETIME COULD YOU SEE ANY CHANGES YOU MAKE IN THE PROGRAM. IF THIS EVER CAME UP AGAIN; YOU WOULD LIKE TO SEE HIS BEST.>>MADAME CHAIR REPRESENTATIVE. I DON’T THINK I’M THE MOST QUALIFIED ONE TO ANSWER THAT QUESTION. AND I SAY THAT BECAUSE MY EXPERTISE IS A GRANT MAKING HIM PROGRAM ADMINISTRATION. MY EXPERTISE IS IN IN THE 7TH OUR GARY FARMS AND WHAT THERE BE HAPPY TO GET THAT FEEDBACK FOR YOU; BUT I DON’T THINK I’M THE BEST QUALIFIED RATE. RIGHT RIGHT NOW.>>THAT’S END OF ANDERSON THAT IS JUST ONE PROMISE JUST ONE MORE.>>HAHA WE GOT.>>1800 PRODUCERS 1500 FARMS; WHAT PERCENTAGE OF OF ALL FARMERS THE WE REACH WITH THIS PROGRAM HE HAD THAT THAT THE INFORMATION THIS PASS.>>MADAM CHAIR REPRESENTATIVE I DO NOT HAVE THAT INFORMATION ON BE I THINK WE NEED TO CHECK IN WITH USDA TO DETERMINE WHAT THEIR TOTAL ENROLLMENT WAS AND IN THE STATE AND GO FROM THERE.>>S REPS IN ADVANCE AND DID YOU GET THE INFORMATION ABOUT TO HOW MANY DAIRY FARMERS BE REACHED WITH THIS PROGRAM.>>MADAM CHAIR REPRESENTATIVE I DON’T SEE ANY REASON WHY WE WOULDN’T BE ABLE TO.>>AND THANK YOU THANK YOU FOR ANSWERING THOSE QUESTIONS NEXT TUESDAY IS MINNESOTA AND NOW VERY DAY AND THE CAPTAIN AND I THINK WE’LL HAVE MORE INFORMATION SO THAT MIGHT BE ABLE TO PROVIDE THAT YOU KNOW NEXT WEEK WITH SOME OTHER PEOPLE THAT WOULD BE ABLE TO YOU KNOW ANSWER THOSE QUESTIONS SO THANK YOU ANYBODY ELSE HAVE QUESTIONS OTHERWISE THANK YOU FOR THE PRESENTATION AND THE INFORMATION THANK YOU FOR THE THE HARD WORK AND THE FASTEST SPEEDY WAY THAT YOU TOOK CARE OF IT BECAUSE THEY THINK IT WAS IT WAS DEAFENING LEE A LITTLE COMPLICATED TIME TO COME UP WITH WHAT THOSE NUMBERS SHOULD BE AND HOW PEOPLE WOULD BE ABLE TO THE ELIGIBLE AND WHAT THE PROCESS WAS GOING TO BE SO VERY MUCH APPRECIATE IT. THANK YOU. SO WE NOW ARE GOING TO TALK ABOUT PART OF THE INDUSTRY THAT WE’RE BECOMING MORE FAMILIAR WITH THE MESS INDUSTRIAL HEMP. ANTHONY IS A QUARTER LEAD. I WELCOME TO THE COMMITTEE AND AGAIN I THINK THOSE. INFORMATION IN YOUR HOLDER FOR THIS PRESENTATION SO WELCOME TO THE COMMITTEE JUST THE STATE YOUR NAME AND THEN YOU AND GO AHEAD WITH PRESENTATION.>>MADAM CHAIR MEMBERS THAT KATIE THANKS FOR HAVING ME MY NAME IS ANTHONY QUARTER LEAD AND I SUPERVISE BOTH THE NOXIOUS WEED. AND INDUSTRIAL HEMP PROGRAMS FOR THE MINNESOTA DEPARTMENT OF TODAY I WANT TO GIVE YOU A BRIEF BRIEF IT’S LIKE CAN A PROGRAM THAT HAS A LOT GOING AND THAT IS INDUSTRIAL HEMP. MOST OF YOUR FAMILIAR. AND IT’S NOT COMING UP ON YEAR.>>THEY’RE JUST THESE MOVE FOR THE NEXT 5 YEARS.>>ALL TO START WELL SOMEONE CAN HELP. ALL THIS TALK. WELL WE FIGURED>>IN 2014 MOST OF YOU ARE FAMILIAR THAT I’M AFTER A LONG BOUT OF PROHIBITION WITH WITH CANNABIS IN GENERAL IN THE UNITED STATES; THE 2014 FARM BILL PAVE THE WAY FOR. LEGALIZATION TO BEGIN FOR HEMP PRODUCTION IT FIND HEMP SEPARATELY FOR THE FIRST TIME IN LAW FIRM. MARIJUANA WHICH WAS THE PRIMARY DEFINITION FOR CANNABIS UNDER THE CONTROLLED SUBSTANCE ACT. AND IT ALSO STATE DEPARTMENT OF AGRICULTURE’S ACROSS THE US TO DEVELOP A PILOT PRO GRAHAM’S THAT COULD STUDY THE GROWTH CULTIVATION AND MARKETING HELP AND THAT WAS 6 SIGNIFICANT HERE IN MINNESOTA BECAUSE IMMEDIATELY THERE AFTER THE 2015 LEGISLATIVE SESSION. THE LEGISLATURE PASSED THE MINNESOTA INDUSTRIAL HEMP DEVELOPMENT ACT WHICH GAVE THAT MINNESOTA DEPARTMENT OF AGRICULTURE FOR WE’RE READY TO BEGIN OPERATING UNDER PILEUP PROGRAMS AND TO ESTABLISH A LICENSING REGULATIONS FOR INDUSTRIAL POUT AND WE BEGAN RIGHT AWAY CREATING OUR PILOT PROGRAM IN 2015 WHERE ONE OF THE FIRST STATES IN THE US ALONG WITH KENTUCKY; COLORADO I BELIEVE TENNESSEE AND A HANDFUL OF OTHERS. THAT BEGAN OPERATING A PRO GRAHAM’S WE DIDN’T ACTUALLY GET SEATED INTO THE GRASS UNTIL THE FOLLOWING BUT WE WERE ABLE TO BEGIN FIGURING OUT HOW WE WANTED TO GO FOR WORD AND TRAINED US LISTS THAT GROWERS TO. AGAIN HEMP PRODUCTION IN THE STATE. I’LL TRY TO FOLLOW MY NOTES HERE HOPEFULLY YOU GUYS HAVE A POINT.>>HAVE WE HAVE THE INFORMATION THAT IN OUR OLDER AND THERE SHOULD BE OTHER CATHY’S BOOK OVER PEOPLE WANTED TO GO AND GET ON TO THANK YOU.>>ONE OF THE THINGS THE ORIGINAL FARM IN THE PROVISION WAS THAT DID NOT REMOVE HEMP FROM THE CONTROLLED SUBSTANCES ACT SO THAT DID CREATE SOME ONE OF A PROBLEM FOR US IN TERMS PART THE SHIPS WITH FEDERAL LAW ENFORCEMENT AS WELL AS CONFUSION AMONGST OUR LOCAL LAW ENFORCEMENT. HOWEVER WE THINK WE DID A GOOD JOB OF THINGS IN PLACE TO MAKE SURE THAT HEMP GROWERS WERE ESSENTIALLY GROWING HOW AND IN THE NEXT ITERATION OF THE FARM BILL CAME ALONG AND WAS AT THE END OF THAT YEAR WHICH ESSENTIALLY ADDED TO THE AIR CULTURAL MARKETING ACT OF 1946 A SECTION FOR INDUSTRIAL HEMP PRODUCTION. AND SO NOW INDUSTRIAL HEMP IS AN AGRICULTURAL COME INDIAN THE US LEGAL TO GROW THROUGHOUT THE UNITED STATES AND THE UNITED STATES DEPARTMENT OF AGRICULTURE’S AGRICULTURAL MARKETING SERVICE HAS THE PRI; I’M MARY AUTHORITY FOR HEMP REGULATION IN THE US THAT’S WHAT THE 2018 AND BILL ALLOWED THOUGH WAS 4 STATES AND TRIBES TO BE ABLE TO SUBMIT PLANS TO THE USDA. THAT WOULD BE APPROVED FOR THEM TO RETAIN REGULATE AUTHORITY OVER HALF WITHIN THEIR JURISDICTIONS. THE OTHER THING IT DID WAS IT REMOVED HIM AS DEFINED FROM THE CONTROLLED SUBSTANCES ACT. AND THAT’S SIGNIFICANT BECAUSE NOW HEMP IS DEFINED DIFFERENTLY THAN MARIJUANA. SO ANY CANNABIS THAT IS A 2 LITTLE THC CONTENT OF 0.3% OR LAST IT’S CONSIDERED INDUSTRIAL POWER. IT ALSO PROTECTS THE A INTERSTATE COMMERCE AND TRANSPORTATION OF HIM SO IT SPECIFICALLY STATES THAT TRIBES AND STATE AND LOCAL LAW ENFORCEMENT CANNOT INTERFERE WITH COMMERCE A TRANSPORT OF LEGAL INDUSTRIAL HEMP. ONE OF THE THINGS THAT DOESN’T DO AND THAT’S STILL CREATES A LOT OF CONFUSION OUT THERE IT DID NOT CHANGE THE FOOD DRUG AND COSMETIC BUT THAT WHICH THE FDA OVERSEES AND WHICH GOVERNS YOU KNOW MOST OF OUR FOOD LAWS. AND SO I’M SURE MOST OF THE ARE WELL AWARE OF A CANNABINOID PRODUCTS LIKE CANNABIDIOL THAT ARE VIRTUALLY EVERYWHERE NOW. THOSE ARE NOT CONSIDERED TO BE. LEGAL ADDITIVES TO EITHER FOOD OR DIETARY SUPPLEMENTS BY THE AND THERE HAS BEEN NO CHANGE OTHER THAN PASSAGE OF A MINNESOTA STATE 2 TO ONE 51.7 TO WHICH ALLOWED FOR SALE OF CERTAIN CANNABINOID PRODUCTS OUT OF LAST IT STILL IS CONSIDERED FEDERALLY. BUT WE KNOW THAT WAS THE LAST ONE THAT LETS. IT’S STILL CONSIDERED ILLEGAL. UNDER FDA RULE. TO ADD CANNABINOIDS TO FOODS SOME STATES HAVE GOTTEN AROUND THAT BYPASS SEEN STATE LAWS TO AMEND WHAT THEY’RE THERE FEDERAL LAW SAYS BUT THAT DOESN’T CURRENTLY EXIST HERE IN MINNESOTA. ESSENTIALLY WHERE WE’RE AT NOW IT IN A AREA MORE RECENTLY WE’VE HAD THE FEDERAL GOVERNMENT THROUGH USDA PASS IN TERM RULES FOR HEMP PRODUCTION AND I’M OK EXCELLENT ARE UP AND GOING NO; I DON’T HAVE TO MAKE THIS UP AS THEY GO AND WE’RE PRIMARILY TALKING ABOUT 3.>>DIFFERENT TYPES OF GROWTH IN MINNESOTA AND IT’S IMPORTANT I THINK FOR EVERYONE TO UNDERSTAND THAT.>>WHEN THE INITIAL FARM BILL WAS DISCUSSED AND EVEN THE IN THE INITIAL TESTIMONY FOR THE MINNESOTA INDUSTRIAL HEMP DEVELOPMENT ACT WE WERE TALKING ABOUT TOO FORMS OF HEMP PRODUCTION FIBER AND AND I WOULD I WOULD ARE ARE YOU EVEN THEM THE 2018 FARM BILL LANGUAGE STILL PERTAINS TO THAT AND THAT’S HIM PARTON TO REALIZE BECAUSE THAT 0.3% THC NUMBER IS FAIRLY LIBERAL WHEN YOU’RE TALKING ABOUT A 5 NEIGHBOR OR A GREEN HEMP PLANT ANOTHER WORD. MOST OF THOSE VARIETIES HAVE BEEN AROUND FOR A LONG TIME THEY’VE BEEN BURNED; BUT THEY’VE BEEN TESTED THE GENETICS OF FAIRLY SOLID. WHAT’S BECOME MORE POPULAR IN RECENT YEARS; ITS PRODUCTION OF CANNABINOID EXTRACTS AND WILL CALL THAT CBD HEMP FARMING FOR LACK OF A BETTER WAY TO DESCRIBE THAT IT’S WHERE MOST OF OUR FARMERS ARE INTERESTED IN GROWING THE A YEAR TO 2 YEARS AGO THERE WERE WILD ESTIMATES OF ANYWHERE FROM 20;000 TO $80;000 AN ACRE COULD BE PRODUCED AND IF YOU’RE A CORN AND SOYBEAN GROWER RIGHT NOW THAT’S I’M STRUGGLING TO GET BY THAT SOUNDS PRETTY GOOD. AND FORTUNATELY; THERE’S RISK WITH GROWING THOSE TYPES OF PLANTS ESSENTIALLY THEY CAN I’M OUT OF THE FRESH MARIJUANA INDUSTRY IF YOU WANT TO CALL IT THAT FROM STATES LIKE COLORADO. CALIFORNIA WHERE BUSINESSES WERE DEVELOPING BUT BECAUSE IT’S NOT LEGAL UNDER FEDERAL LAW USE MARIJUANA THEY COULD ONLY EXIST WITHIN THE STATE LIKE COLORADO WHERE THEY WERE OPERATING. THE NEW HAVE TO FINISH AND GAVE THEM AN OPPORTUNITY TO MOVE IN THE STATES WHERE HEMP IS LEGAL AND TO BEGIN PRODUCING NON PSYCHOACTIVE CANNABINOIDS SO THE PLANTS THAT ARE GENERALLY GROWN FOR CBD OR CONNECT CANNABINOID EXTRACTION. ARE LAST RELIABLE I WOULD SAY GENETICALLY JUST BECAUSE THE BREEDING HASN’T BEEN ALLOWED TO GROW AS WELL AS WITH A FIRING RANGE. SO THE OTHER THING ABOUT THE CBD A CANNABINOID PRODUCTION IS THAT LOOKS VERY SIMILAR PRODUCTION AND WE COMMONLY GET CALLS FROM FOLKS AROUND THE STATE THAT SEE THESE MORE BIG BUSHY CHRISTMAS TREE STAR. FARMS WITH A WITH HEMP VERSUS THE MORE STANDARD ROW CROP FIBER AND GRAIN TYPE PRODUCTION OF HIM SO IT. IT’S CHALLENGING BUT WE’RE WORKING OUR WAY THROUGH IT. IN MINNESOTA REQUIREMENTS THAT YOU MUST BE LICENSED TO A T IN ARE TO BE ABLE TO GROW YOU ALSO HAVE TO REPORT ALL YOUR FIELDS TO THE DEPARTMENT AND YOU HAVE TO GROW UNDER WE HAVE PUT INTO PLACE AND THE LICENSING SYSTEM THAT WE WORKED WITH MINUTE ON THAT HAS GREATLY LESSENED ARBOR RIGHT NOW I HAVE A 2 TREMENDOUSLY TALENTED FULL-TIME STAFF COVERING ALL THE ACTIVITIES OF HAIR AND THEY’RE GRATEFULLY APPRECIATED THIS YEAR TO HAVE THAT TYPE OF THE SYSTEM IN PLACE THAT ALLOWS ALSO THE GROWERS OR PROCESSORS OBTAINING A LICENSE TO GO ONLINE AND BUY ONE. THE OTHER REQUIREMENT THAT WE HAVE IS THAT ALL LICENSEES MUST PASS A CRIMINAL HISTORY BACKGROUND CHECK THAT’S REQUIRED UNDER BOTH OUR STATE LAW AS WELL AS THE FEDERAL LAW. AND SO THAT WE DO THAT CURRENTLY IN OUR PILOT PROGRAM FOR FIRST-TIME APPLE HENCE THE NEW USDA RULES WHICH TOOK EFFECT HERE IN A SECOND THEY HAVE A LITTLE DIFFERENT INTERPRETATION OF THAT WE’RE TRYING TO WORK THROUGH WHAT THAT’S GOING MEAN FOR THE FOR THE FUTURE AS I SET OUT TO STAFF AND WE DO GO OUT IN SAMPLE AND TEST EVERY SINGLE IN THE STATE AND GETS TO BE CHALLENGING; ESPECIALLY IN THE AIR LIKE LAST YEAR WHERE WE HAD TAX POTENTIAL GROWTH AND HOW I’LL SHOW YOU A GRAPH OF SOME OF THAT DATA HERE IN THE CUP SLIDES. WE GENERALLY DO RANDOM SAMPLING WE COLLECT 30 SAMPLES PER FIELD WE MAKE IT MUCH IN A SAMPLE BRING THAT TO OUR 3RD PARTY ACCREDITED LAB. WHICH HAPPENS TO BE WATCHING TECHNICAL SERVICES RIGHT HERE IN ST. PAUL WE’VE BEEN USING LEGEND SENSE. WE STARTED THE PILOT PROGRAM. PRIMARILY BECAUSE OUR STATE. THEY ARE CULTURAL LAB IS NOT SET UP TO DO CANNABIS TESTING. YOU HAVE TO UNDERSTAND THAT IF THEY HOT HIM AS WE CALL IT THE TESTS ABOVE THE 0.3 COMES IN THE LAB IS NOW IN POSSESSION OF A CONTROLLED SUBSTANCE AND SO THAT REQUIRES QUITE A BIT OF MANIPULATION AND BUILD OUT TO OUR LAB FACILITY. SO IT’S ALWAYS BEEN EASIER TO USE A 3RD PARTY LAST BUT THEY ALSO DO ALL THE MEDICAL CANNABIS TESTING. FOR OUR 2 FACILITIES IN THE STATE UNDER THE MEDICAL CANNABIS PROGRAM THERE ISIS ARE TOUGH THEY FOLLOW CANNABIS PROCEDURES AS WELL AS WE HAVE THEM IN ROLLED INTO DIFFERENT PROFICIENCY TEST. NATIONWIDE WHERE IT’S KIND OF TESTING THE TESTER TO MAKE SURE THEREAFTER. IF YOU GO ABOVE YOU FAIL THE TEST YOU HAVE 2 OPTIONS; ONE OF THEM IS THIS RE APPEALED THE OTHER IS YOU CAN DISPUTES THE TEST AND REQUIRE OR REQUEST THAT THE DEPARTMENT COME OUT AND COLLECT A SECOND SAMPLE AT YOUR COSTS. HE FAILED A SECOND TEST IT STUN UNFORTUNATELY YOU HAVE TO DESTROY IT PROF I SAY THAT TO YOU FOLKS WITH A HEAVY HEART THAT’S THE WORST PART OF THIS JOB THERE ISN’T A FARMER; I KNOW. WHO PURPOSELY TRIED TO GROW A CONTROLLED SUBSTANCE; IT GOES BACK TO THAT WHOLE POINT I TALKED ABOUT THE LACK OF GOOD SOLID GENETICS AND THAT CBD ARENA. OUR FIRE INJURING PRODUCERS HAVE NEVER FAILED THE PAST. BUT THIS IS SOMETHING WE NEED TO WORK OUT IN THAT AREA OF CANNABINOID EXTRACTION WE HAD ABOUT 12% TEST FAILURE THAT’S FAIRLY LOW WHEN YOU CONSIDER STATES LIKE YOURS ARE HAD IT’S STILL TOO MUCH AND THIS IS SOMETHING THAT WE WOULD LIKE TO ELIMINATE HAVING TO TELL UP TELL A FARMER THAT’S AND TO DO THE RIGHT THING THAT THEY ARE THE TROPICS HOT. HERE’S SOME SAID THE STATISTICS YOU CAN LOOK AT YOU CAN SEE THE GROWTH OF OUR PROGRAM WE WITH A 6 PRION AIR FARMERS WE GREW TO THROUGH 343 LAST YEAR. THOSE NUMBERS OBVIOUSLY A RELATIVELY LOW FOR COMPARING IT TO SMALL GREEN WERE CORN OR SOYBEANS. BUT IT SHOWS AN EMERGING MERGING MARK BUT THERE WAS A BIG UPTICK BETWEEN 2018 29 TEEN THIS IS BECAUSE OF THE PASSAGE OF THE FEDERAL FARM BILL AND A LOT OF EXCITEMENT HEMP BUT IT WAS ALSO RELATIVE TO THE PRICE. FOR CBD OIL ON THE MARKET GOING BACK TO THAT 20;000 PER $80;000 PER ACRE ESTIMATE. AND SO YOU CAN ALSO SEE THAT BELOW IN THE DIFFERENT TYPES OF HEMP THAT WERE GROWN WE STARTED OUT PRIMARILY AS A GREEN STATE. AND IN ABOUT 2018 YOU START SEEING MORE CBD COME IN AND BY 2019 GRAIN AND CBD ALMOST FLIP FLOP. THAT’S REALLY WHERE A LOT OF THE INTEREST IN IN THE INDUSTRY RIGHT NOW HOWEVER; I WILL POINT OUT THAT THE PRICE OF CRUDE IS ABOUT A CALL ORDER NOW OF WHAT IT WAS BECAUSE EVERY STATE IN THE 47 STATES IN FACT THAT HAD HIM PLOTS HAD THIS KIND OF EXPONENTIAL GROWTH AND SO THE MARKET RIGHT NOW IS JUST SATURATED WITH CREW. WELL AND THAT THE HEMP GROWERS ARE STARTING TO LEARN WHAT. YOU KNOW THAT TYPE OF MARKET LOOKS LIKE WHERE WERE THE THE BASED ON SUPPLY AND DEMAND ANYWAY. SO WE CURRENTLY HAVE ABOUT 10 TO 20 X TRACTORS IN THE THAT’S PRETTY SIGNIFICANT FROM WHERE WE WERE 2 YEARS AGO. THERE IS AS WELL AS THE CANNABINOID PRODUCTS AND THE SUPPLY BY THE PART OF THE DEMAND I SHOULD SAY BY THE PUBLIC FOR THOSE THERE’S ALSO DEVELOPED HELP SMOKABLE MARKET SO FARMERS WILL GET A PREMIUM FOR HARVESTING THEIR HAVE FLOWER AND SELLING IT IT’S THE SAME CONCEPT OF TAKING SOME TYPE OF AN OR A PRODUCT. YOU’RE SIMPLY INHALING THE CANNABINOIDS IN HERE LAWNS A LOT OF TIMES THESE ARE ARE MARKETED AS ANTI OPPORTUNITIES TO EVEN KNOW IT’S SOMEWHAT IRONIC THAT YOU’RE STILL SMOKING BUT. I THINK IT’S TO GET RID OF THE NICOTINE HABIT. WE DON’T REALLY HAVE FIBER PROCESSING AND THAT IS CRUCIAL ALMOST ALL MY COLLEAGUES IN OTHER STATES. WE ALL AGREE THAT FOR LONG-TERM SUSTAINING HEMP FIBER PRODUCT IT IS ESSENTIAL. IT’S A NO-BRAINER JUST DO THE MATH THERE’S LITERALLY THOUSANDS UPON THOUSANDS OF PRODUCTS THAT HEMP FIBER CAN GO INTO IN FACT WE’VE BEEN IN DISCUSSIONS WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION ARE UNDER A DIRECTIVE TO REDUCE THE AMOUNT OF PLASTICS IN ROADSIDE RESTORATION PROJECTS. LIKE IT MATCHES THE VEGETATION MATCHES AND SO FORTH THOSE THINGS DON’T BREAK DOWN HEMP FIBERS A TOO. INTEGRATE INTO A SYSTEM LIKE THAT AND THAT’S JUST ONE OF I COULD GO ON FOR HOURS AND I DON’T WANT TO BORE YOU WITH THAT BUT THAT’S REALLY WHAT WE’RE HOPING THAT PROBLEM IS HEMP FIBER PRODUCTION ARE PROCESSING IS EXPENSIVE IT TAKES A LARGE INVESTMENT; IT’S REALLY SAD THAT IN MINNESOTA PRIOR TO PROHIBITION AND 1940’S WE HAD PROCESSING PLANTS IN MINNESOTA FOR THIS AND THEY EITHER HAD TO BE RETROFITTED TO SOMETHING ELSE OR THEY WERE TORE DOWN SO WE’RE LEARNING THAT WE’RE HAVING TO RESTART AN INDUSTRY THAT USED TO EXIST WE DO HAVE SOME COMPANIES THAT ARE OFFERING CONTRACTS TO FARMERS FOR BOTH GREEN AND SEED. COUPLE IN CANADA; ONE IN WISCONSIN; ONE HERE IN MINNESOTA SPECHT THAT WILL THAT WILL ALSO INCREASE OVER TIME. SO WHERE WE’RE INTO UM’S THE REGULATORY ASPECT. HIS LITTLE BIT OF LIMBO; I’M USDA WAS REQUIRED ON THE FARM BILL PASSED TO PUT FORTH IN THAT PUT FORTH RULES FOR HEMP PRODUCTION AND THEY DID THAT BY RELEASING THEM THIS HOW WE THAT COULD HAVE BEEN A WORSE TIME FOR US TO HAVE THOSE RELEASED. I THINK IT WAS A 161 PAGES FOR US TO COMB THROUGH WHILE WE HAD TO START LICENSING. BOTH GROWERS AND PROCESSORS FOR A 2020 AND THE REASON WE NEED TO DO THAT IS SOME FARMERS HAVE CROPS THAT GO IN FOR THE DECEMBER 21TH TO HURT THE 31TH DEADLINE FOR WHEN OUR LICENSE EXPIRES AND SO THE THE RULES ARE FAIRLY CLOSE TO HOW WE OPERATE OUR PILOT PROGRAM BUT I WOULD SAY THERE ARE SOME MAJOR STICKING POINTS THAT WOULD BE I’M A PRETTY DAMAGING TOUR. THE HEMP INDUSTRY THAT WE’VE BEEN DEVELOPING OVER THE LAST 5 YEARS AND CERTAINLY OUR GROWERS AND PROCESSORS HAVE LET US HEAR THAT. THEY OPEN THERE INTERNAL RULES FOR COMMENT NATIONWIDE I’D ONE GOOD THING THAT HAPPENED THROUGH THE 2018 FARM BILL IS IT ALSO EXTENDED THE PROVISION IN THE 2014 FARM BILL FOR ONE YEAR AFTER THE USDA POSTED THESE RULES. SO TECHNICALLY; MINNESOTA CAN OPERATE UNDER A PILOT PROGRAM UNTIL OCTOBER 31TH THIS YEAR. AND THAT’S IMPORTANT BECAUSE WE HELD A 3 LISTENING SESSIONS THROUGHOUT THE STATE RIGHT AFTER THESE RULES WERE POSTED BY THE USDA. AND THEY WERE VERY WELL ATTENDED WE HAD ONE HERE IN SAINT PAUL ONE IN DETROIT LAKES AND ONE MAN KETO WE HEARD VERY CLEARLY FROM MINNESOTA FARMERS AND PROCESSORS. WHAT THEY THOUGHT ABOUT THESE RULES AND PRIMARILY THERE’S THINGS REVOLVE AROUND HOW WE SAMPLE. WHETHER OR NOT REMEDIATION A HOT HEMP IS ALLOWABLE AND DO WE HAVE TO SAMPLE EVERY FIELD OR CAN WE DO SOME TYPE OF RANDOM SAMPLING. ALL OF THESE THINGS ARE SOMETHING THAT WE TALK WITH THE US DOMESTIC A PROGRAM THAT WE’VE BEEN IN CAR NEVER SAY SHUN WITH THEM WE LET THEM KNOW THAT WE WILL BE OPERATING UNDER A PILOT GRAHAM THIS YEAR SO THAT WE DON’T DAMAGE THE THE YOU KNOW GROWING INDUSTRY THAT WE HAVE WELL WE TRY TO WORK ON A STATE PLAN THAT WE CAN SOME HOPEFULLY BEFORE THE END OF THIS FALL AND HAVE IT APPROVED WHERE WE CAN START OPERATING UNDER THE USDA RULE ALSO WANT TO MENTION THAT HAS A LOT OF INVOLVEMENT IN THE RULE THAT ARE WRITTEN INTO IT. THAT’S KIND OF A STICKING POINT AND SO WE’RE WORKING WITH THE A ON A LOT OF THESE ISSUES ALSO IT’S NOT THAT IT’S YOU KNOW A BAD THING IT’S JUST IT’S SORT OF HARD FOR US TO PLAN AND TELL YOU WHAT THIS LOOKS YOU KNOW IN THE UPCOMING MONTH. SO WITH THAT I KNOW IT COVERED A BIG TOPIC; IT’S QUICK AS I COULD OPEN IT UP TO ANY QUESTIONS THANK YOU MISTER CARL AND WE DO HAVE A NUMBER OF START OUT WITH REPRESENTA MILLER. THANK YOU MADAM LET’S SAY YOUR NAME RIGHT UNDER STRICT WHAT I THINK YOU VERY MUCH FOR THAT THIS IS A GREAT PRESENTATION IN THE BRIEF TIME HE ADDED THAT EXCELLENT JOB.>>2 REAL QUICK ONE ON YOUR ON YOUR PRESENTATION; IT SAID HEMP SMOKABLE MARKET IS GROWING AS WELL THAT ELICITS A LOT OF THINGS MY MY CAN YOU JUST GET LIKE A ONE MINUTE VERSION OF WHAT THAT LOOKS LIKE AND WHAT THAT MEANS.>>THE SUPER MADAM CHAIR; REPRESENTATIVE>>IT’S ESSENTIALLY A LOT OF YOUR SMOKE SHOPS AND HEAD SHOPS ARE FINDING A WAY FOR THEM TO DIVERSIFY THEIR PRODUCT LINES WITH ACTUAL HOW FLOUR I’M THE BEST WAY I CAN DESCRIBE THAT IS IT 6 IT YOU KNOW EXACTLY LIKE SMOKING MARIJUANA. THE IT DOES POSE SOME SOME PROBLEMS FOR LAW ENFORCEMENT AND WE WORK A LOT WITH ON WHAT IS YOU KNOW THE PERSON THEY JUST PULL OVER WHAT IS IT IS OF HIM IS IT LEGAL OR IS IT IS ILLEGAL MARIJUANA. SO I DON’T KNOW HOW FAR THAT MARKET WILL GROW THAT’S YOU KNOW DOES IT KEEP GROWING OR HAS A KIND OF REACHED ITS PEAK AND IT WAS SORT OF A NOVELTY THAT JUST BLEW UP WITHIN THE LAST YEAR BECAUSE THAT HAVE FLOWER BECAME AVAILABLE.>>THANK YOU MADAM CHAIR AND THAT’S THAT SOME WANT TO KEEP AN EYE AND A NOTE; THE OTHER QUESTION I HAVE AND I’M TRYING TO KEEP IT SIMPLE AND HAVE YOUR ANSWER SOME FUN; THIS. BUT THEY HAVE PRODUCERS THAT I KNOW THAT ARE KIND OF TAKING THE RIGHT OF CANADA THE MARKETPLACE IS A CHALLENGE FOR YOU CAN’T NECESSARILY DO ANYTHING ABOUT THAT WHAT I MEAN IS ONCE THEY HAVE ONE SAID THE HEMP TO GET TO A PROCESSOR TO GET PAID FOR THAT WHOLE DYNAMIC BECAUSE THE BANKING LAW ON THINGS LIKE THAT IS A CHALLENGE CAN YOU GIVE KIND OF AN OUTLOOK OF HOW WE’RE HOW THAT’S GOING TO BE HELPED IN THE NEXT YEAR BECAUSE I HAVE PEOPLE THAT HAVE A LOT OF FUN AND THAT REALLY PRACTICE WE DON’T HAVE ANY. SO WHAT IS THAT LOOKING LIKE A PART OF THAT.>>AND CHAIRMAN REPRESENTATIVE MILLER; IT’S A GREAT QUESTION AND IT IS AN ISSUE.>>THIS BODY WILL RECEIVE 2 DIFFERENT REPORTS FROM 2 DIFFERENT CANNABINOID GROUPS THAT WERE ASSEMBLED OUT OF THE LAST LEGISLATIVE SESSION THAT WILL ADDRESS SOME OF THAT. WHAT I WILL TELL YOU IS THAT THERE ARE CURRENTLY NO REGULATIONS FOR PROCESSING OF CANNABINOIDS RIGHT NOW IN THAT POSES A PROBLEM BECAUSE THERE’S NO PROTECTION FOR THE FALL. THERE’S NO PROTECTION FOR THE PROCESS OR BOTH WAYS SO WE NEED TO WORK ON THAT. AND AGAIN THOSE REPORTS GO INTO THAT I’M THERE YOU KNOW WITH INCREASED DEMAND THERE’S TRYING TO GET THE INFRASTRUCTURE BILL THOUGHT TO SUPPORT IT AND I THOUGHT I’M INTERESTED TO SEE WHAT HAPPENS THIS YEAR NOW THAT PRICES ARE KIND OF EITHER LEVELING OUT OR DECLINING A LITTLE BIT. MAYBE IT WILL GIVE US BREATHING ROOM TO ESTABLISH MORE PROCESSING TO HELP THOSE FARMERS AND WHAT THEY’RE TRYING TO DO THAT THANK YOU THANK YOU.>>WE HAVE A COUPLE MORE REPRESENT OF HANSSEN. THANK YOU MADAM CHAIR AND A LAST YEAR WE PASSED IN THE ENVIRONMENT BILL A PROVISION ON LOOKING AT CHANGING FROM PLASTICS AND CONSERVATION MATERIAL SO THE THINGS THAT ARE DEPARTMENTS OF TRANSPORTATION USE WHETHER IT’S STATE DEPARTMENT OR LOCAL ON. SO FENCES OR WHETHER IT’S NETTING. BORDER RESOURCES AND SO WATER DISTRICTS ARE USING PLASTIC BECAUSE THAT PLASTIC BREAKS DOWN IN THE RIVERS AND THAT WE ARE GETTING THE MICROPLASTICS THERE SO YOU MENTIONED IN YOUR PRESENTATION ABOUT USING HIM AS HAS THERE BEEN ANY FURTHER WORK ON THAT I I THINK THAT OUR DEPARTMENT TRANSPORTATION IS BUYING HEMP PRODUCTS FROM LIKE NORTH CAROLINA ARE FLORIDA. WHAT IS THE DEPARTMENT DOING. WITH WHAT YOU’RE DOING CONNECTING WITH THE DEPARTMENT TRANSPORTATION AND THE CONSERVATION ORGANIZATIONS ON REPLACING PLASTIC CONSERVATION MATERIALS WITH HIM MISTER CHERUBS ENHANCING RIGHT NOW THE DEPARTMENT TRANSPORTATION EXAMPLE IS IS PROBABLY THE ONE THAT STICKS OUT THE MOST RIGHT NOW THAT WE’VE HAD ACTION ON.>>WE’VE MET WITH THEM SEVERAL TIMES AND WE’VE ALSO PUT THEM IN TOUCH YOU ARE UTILIZATION RESEARCH CENTER. THEY’RE LOOKING AT. COMPANY RIGHT NOW IN CANADA THAT PRODUCES SOME FIBER MATS FOR EXAMPLE MISS JUST ONE EXAMPLE OF SEVERAL THAT AGO THAT WON’T GO INTO IN DETAIL; BUT I YOU ARE I HAD SPOTTED SMALLER DECOR TO CATER AND THEY’RE GOING TO START TRYING TO FIND DIFFERENT FIBER THICKNESSES AND STUFF THAT WOULD WORK FOR MEN DIED MY COLLEAGUE KEN GRAVY OVER AT MEN DIED IS WORKING WITH THEM TO TRY TO FIGURE OUT OK; HOW IS HOW CAN WE GET AWAY FORWARD WITH THIS. WE’RE HOPING THAT IF WE CAN GET SOME GROUND WITH THAT WE CAN START PUTTING SOME HELP FARMERS IN THE IN THE THE CYCLE TOO AND MAYBE HAVE SOME SORT OF A PILOT PROJECT FOR THAT AND THEN GROW UP ON THAT.>>NEXT PERSON REPRESENTIVE BANK. THANK YOU MADAM SOME LOOKING AT THE TABLE. THIS SLIDE. THE NUMBERS OF APPLICANTS VERSUS LICENSE GROWERS I JUST WANT TO KNOW WHAT MADE THAT DIFFERENCE IS STIR A. ACREAGE REQUIREMENTS ARE OTHER REQUIREMENTS THAT IT’S THAT LIE. HALF THE APP CAN SOON BECOME LICENSED.>>MADAM CHAIR REP ANG A DIFFERENT LIGHT. THAT YOU KNOW I CAN’T SPECIFICALLY TELL YOU WHY THAT IS I CAN TELL YOU THAT A LOT OF FOLKS AFTER THE FARM BILL PASSED WANTED TO BUY A LICENSE AND BE PREPARED TO GROW. THERE IS NO BY THE WAY AIG ACRE LIMITATION OR ANY OF THAT I’M THE ONLY REAL LIMITATION WE’VE HAD TO PUT IN IS GROWING IN A RESIDENTIAL MAYOR. HOPE DUALLING AND WE JUST DID THAT BUT AS OF LAST EACH YEAR MOST OF THAT CAME DOWN TO A LOT OF FOLKS HAD YOU BIG IDEAS ON THIS AND THEY COULDN’T FIND LAND. WE DO HAVE A SIGNIFICANT AMOUNT OF YOU KNOW RESIDENTS WHO WANT TO GET INTO THIS; BUT THEY DON’T HAVE THE LAND TO FARM ON AND I THINK; BUT THAT MAY HAVE PLAYED A SIGNIFICANT ROLE IN THAT AND SO THEY’RE TRYING TO FIND WAYS TO NOW WORK WITH FARMERS AND MAYBE GET SCRAPE OUT A FEW ACRES TO BE ABLE TO YOU KNOW GO OUT INTO RURAL AREAS AND GROW THIS. THANK YOU REPRESENTATIVE THANK THANK YOU MADAM CHAIR AND THEN.>>US ON A SEPARATE NOTE; YOU KNOW I I DO THINK SO THAT WE GOT TO YOU KNOW. SOME WAY TO BRING BACK THE MARKET IS GOING THROUGH THE FIBER PROCESS AND SO WHAT DO YOU THINK THE STATE SHOULD DO OR SHOULD LOOK AT ON TO SPUR THAT ACTIVITY MORE.>>BETTER TO REPRESENT BANK. UM I THINK YOU KNOW IT WOULD BE NICE IF THEY WOULD BE SOME WAY TOO HELP INVESTORS GET DRAWN INTO THE STATE AND BE COMFORTABLE WITH INVESTING THEIR MONEY HERE THERE ARE FOLKS THAT HAVE CONTACTED US FROM YOU KNOW NEW YORK AND CALIFORNIA THAT WANT TO COME HERE AND TRY TO DO IS THIS I DON’T ULTIMATELY I DON’T DEAL WITH THOSE KINDS OF TRANSACTIONS AND I DON’T KNOW WHAT IT’S PREVENTING THEM FROM THROWING THEIR MONEY DOWN HERE AND CHOOSING MINNESOTA AS A PLACE TO BUILD THE FIBER PROCESSING FACILITY. BUT IF THERE WERE A WAY THAT WE COULD. SOMEHOW DRAW THEM IN AND GET THEM TO INVEST MONEY WE SERVE WE HAVE THE GROWERS AND IF THEY COME AND INVEST THE MONEY WILL GET MORE GROWERS TO GROW THE FIBER.>>WE HAVE THIS IS GENERATED A LOT OF DISCUSSION AND UNFORTUNATELY WE’RE GOING HAVE TO MOVE ON BECAUSE I KNOW THAT WE WILL PROBABLY IN THE NEXT. 2 THINK WE’LL HAVE SOME AND HEMP BILLS AND RELATED BILLS THAT THAT BRENT I PROCESS THROUGH SO HOPEFULLY YOU DON’T MIND HOLDING ANY MORE QUESTIONS TELL WE HAVE THOSE BILLS COMING THROUGH BECAUSE WE HAVE SOME PEOPLE FROM OUT OF TOWN WE WANT TO MAKE SURE THAT WE GET TO THEM. TODAY SO I DO APPRECIATE MISTER CORLETTE THEY’VE COME AN IV YOU’VE GENERATED DISCUSSION AND GIVEN US LOTS OF GOOD INFORMATION AND WE PERHAPS YOU’LL BE ABLE TO COME BACK AT THAT TIME; A BOAT LOAD OF OUR LITTLE BIT MORE TIME TO IT SO THANK YOU FOR COMING TODAY AND THANK YOU. MEMBERS OF THE COMMITTEE FOR ACCOMMODATING THAT I JUST WANT TO BE ABLE HE WON MAKE SURE THAT WE GET THE CENTER FOR REAL POLICY AND DEVELOPMENT AND THEN WE HAVE SOME OTHER PEOPLE THAT ARE HERE THEY’RE GOING TO BE TALKING ABOUT THE EMERGING FARMERS OUT THE SHAPE THAT AND WE WILL NEXT GO THE CENTER AND HAVE THE PRESIDENT CEO JULIE TESTS IS THAT THE PERSON THAT WERE INTRODUCED PARTS THERE AND BE ABLE TO PROVIDE SOME INFORMATION THEY’VE DONE. SOME RECENT REPORTING SO WELCOME TO THE COMMITTEE MUST TEST IF YOU CAN GO AHEAD AND INTRODUCE YOURSELF. YES GOOD MORNING.>>MADAM CHAIR FOR THE RECORD MY NAME IS JULIE TESH AND I’M THE PRESIDENT AND CEO OF THE CENTER FOR RURAL POLICY AND DEVELOPMENT. I’M VERY HAPPY TO BE HERE TODAY; THANK YOU. CHAIR POPPY FOR INVITING US IN A ON THE FIRST DAY OF COMMITTEE WERE VERY HAPPY TO BE HERE. I WOULD LIKE TO INTRODUCE WE HAVE BEEN IN THE AUDIENCE WE HAVE MARNI WERNER OUR VP OF OPERATIONS AND RESEARCH THAT WE ALSO HAD HERE HAVE KELLY ASH WHO IS A RESEARCH ASSOCIATE NOW TURN IT OVER TO HIM IN A COUPLE MINUTES; I WOULD ALSO BE REMISS IF I DIDN’T MENTION THAT WE DO HAVE A COUPLE OF BOARD MEMBERS. AND THE AUDIENCE TODAY WE HAVE 2 DEVELOPING REPRESENTING MINNESOTA FARMERS UNION. WE HAVE A BRAND NEW BOARD MEMBER DOCTOR MATT LIES FROM MINNESOTA STATE UNIVERSITY MANKATO AND THEN ALSO REPRESENTATIVE LIPPERT HERE ON THE COMMITTEE AS WELL AS A BOARD MEMBER SO WE’RE GOING TO BE REFERRING YOU TO THIS HANDOUT THAT YOU’RE JUST YOU’RE IN FOR A WILD RIDE BECAUSE WE’RE RESEARCH ORGANIZATION AND WE HAVE DATA AND WE HAVE 2 WONDERFUL RESEARCHERS. AND THEY DO YEOMAN’S WORK AND YOU’LL FIND THAT OUT AND SO WE DO A THOUGHT LEADER SURVEY EVERY YEAR. AND THIS WAS THE NUMBER ONE QUESTION THAT CAME OUT OF OUR THOUGHT LEADER SURVEY THIS LAST YEAR IS. YOU KNOW WHAT IS THE EFFECT OF THE DOUBT AG ECONOMY ON WORLD MINNESOTA. SO THIS IS THE NUMBER ONE THING THAT THOUGHT LEADERS LIKE YOURSELF CAME BACK WITH AND SO I’M GOING TOUCH OVER TO KELLY ASH AND WE’RE GOING TO GET STARTED. WELCOME TO THE COMMITTEE AND JUST INTRODUCE YOURSELF AND THEN BE ABLE TO GO AHEAD YOU’RE CHAIR; POPPY MEMBERS OF THE COMMITTEE MAY MISS KELLY>>CENTER FOR A ALL 3 OF US LIVE IN WORK OUT OF FROM MINNESOTA I LIVE IN NEW LONDON MINNESOTA CAN YOU I COUNTY. JULIE WORKS OUT OF. WELL I THINK WALDORF BUT BASHIQA PROBABLY SMART WHERE MORE PEOPLE WOULD NOT KNOW WHERE SHE LIVES AND THE MONEY TO MAKE A DOUGH AND SO WHEN WE’RE TALKING ABOUT THE TOPIC OF THE DOWNTURN; THE EARL AND ITS CULTURE AND ITS IMPACT ON THE REAL ECONOMY; THIS CONTRACT HOME WITH US BECAUSE WE’RE KIND OF SEEING SOME OF THESE IMPACTS AND SOME OF THE IMPACTS THAT AREN’T HAPPENING THERE’S A LOT OF CONVERSATIONS AROUND THIS. SO THE RESEARCH QUESTION AND I APOLOGIZE; I’M NOT SURE THAT YOU CHECK THE DISPLAY SECONDS HERE REAL QUICK SEE IF I CAN GET TO KNOW. I DON’T KNOW I THINK CUT OFF. BUT OUR RESEARCH QUESTION WAS WHAT ARE THE IMPLICATIONS OF THE DOWNTURN; A CULTURE ECONOMY ON RURAL COMMUNITIES AND THEIR COUNTRY AND THEIR ECONOMY. TO LET ME GO THROUGH SOME OF THE GOALS WE HAD WITH THIS SO THE FIRST PART WAS EXAMINE THE DISPUTE THAT HE TO DISPEL SOME MYTHS. I’M I’M SURE SOME OF YOU HAVE BEEN HEARING A LOT ABOUT FARMERS NOT DOING WELL IN CULTURE ECONOMY; NOT DOING WELL. THAT’S THE REAL ECONOMY MUST BE DOING I THINK THE MOST RECENT EXAMPLES BET FOR T O LAND O’LAKES HAD A LETTER TO THE EDITOR OP ED AND START TO BE TALKING ABOUT HOW ABOUT YOUR CULTURE IS DOING RIGHT NOW AND THE IMPACT IT’S HAVING ON OUR RURAL COMMUNITIES AND REALLY MAKING THAT DIRECT LINK BUT NONE OF THIS IS EVER BACKED UP WITH ANY SORT OF AND SO WE WANT TO TRY AND SEE IF WE CAN START TO THE DATA CAN SEE WITH THESE IMPACTS ARE IT’S BASICALLY GET THE LOCATION AND THAT WAS KIND OF A SECOND CALL SO HOW DOES HE COUNTER CALMING MRS. OVERALL REAL ECONOMY AND I THINK MORE IMPORTANTLY WHERE EXACTLY WHERE WE ALL HAVE OUR DEFINITIONS OF WHAT WORLD IS. BUT THERE ACTUALLY ISN’T A GOOD DEFINITION OF EARL. AND SO WE’RE HOPING TO KIND OF GET SPECIFIC AND FIGURE OUT WHERE THE AREAS WHERE WE’RE SEEING THE MOST IMPACTS AND THE 3RD PART IS WHAT POLICY MAY BE NEEDED IN WOULD BE HELPFUL FOR MINNESOTA FARMERS IN RELATION TO THE REAL ECONOMY. AND THIS PART WE’RE ACTUALLY NOT TO BE TALKING ABOUT TODAY BECAUSE WE’RE ACTUALLY IN THE MIDST OF THIS RESEARCH FOR THIS IS ALL I’M JUST KIND OF FIRST GOAL OF THIS IS WHAT WE’RE SEEING IN THE DATA COULD BE JUST START THIS PROJECT A FEW MONTHS AGO. PSYCHOLOGIST PROBABLY YOUR MOST INTERESTED IN BUT WE WANT PEOPLE TALK ABOUT IT MUCH TODAY. WHAT WE LOOKED AT SO WE LOOK AT 3 THINGS AND IT’S IMPORTANT THAT WE TALK ABOUT THE CULTURE TO PROD RIGHT AND PARTICULARLY WHEN WE’RE LOOKING AT DATA THERE’S A COUPLE DIFFERENT THINGS WE’RE LOOKING AT ONE IS THE FARM ECONOMY SAYS FARMERS AND THE PEOPLE WORKING AND PRODUCING LIFE STOCK AND SELLING MY STOCK AND PRECINCT CROPS IN SELLING THE CROPS AND THINGS LIKE THAT ON THE FARM SO THIS IS SO PROPRIETORS HIS FOLKS WORKING ON THE FARM AND THINGS LIKE THAT THEN THERE’S THE EGG RELATED INDUSTRIES; ECONOMY FOOD MANUFACTURING. A MERCHANT WHOLESALERS THINGS LIKE THAT THOSE ARE KIND OF WAGE EMPLOYEES THAT’S A WHOLE SEPARATE ECONOMY THAT WE HAVE TO ANALYZE THAT DATA AND THEN WE COMPARE THIS TO THE OLD WE’RE ALL REAL ECONOMY AGAIN EARLY ECONOMY DOES NOT EQUAL IT’S PRETTY DIVERSIFIED AND SO WE MAKE SOME COMPARISONS ACROSS ABORT WE DO THAT BY COMPARING RAVE REVIEWS AND GREENS ON THE FARMS ALONG WITH THE WAGES OF THE PEOPLE WORKING IN EMPLOYMENT. SO THAT’S WHAT WE’LL BE LOOKING AT TODAY AND COMPARING THAT WITH WHAT WHAT CHANGES ARE HAPPENING IN THE WORLD CLIMATE WAGES AND WHAT HAPPENING WHAT’S HAPPENING. THESE INDUSTRIES INVOLVED IN A CULTURE AND COMPARE THAT TO SEE WHAT’S HAPPENING. SO YOU THERESA TRACK TO KIND OF FIGURE OUT WHERE FARMERS ARE AT BECAUSE WE CAN’T FIGURE OUT WHAT THE IMPACTS ARE GOING TO BE IF WE DON’T KNOW HOW FARMERS OF OUR R R R DOING TODAY AND WHAT FOLLOWS IMPACTS TRICKLE DOWN INTO THE ECONOMY IS LET’S JUST LOOK AT FARMS REAL QUICK. SO WE HAVE THE FARM ECONOMY PEAKS AND VALLEYS THAT’S TOO BAD; IT’S CUT SO THIS IS FARM CASH RECEIPTS FOR MARKETING AND PRODUCTION THE BLUE LINE IS FARM CASH RECEIPTS THAT’S JUST GENERAL REVENUE FROM SELLING CROPS LIVESTOCK LIVESTOCK PRODUCTION THINGS LIKE THAT MANY EXPENSES ASSOCIATED WITH THAT YOU’LL SEE WELL YOU CAN SEE; BUT THERE THAT CROP COMMODITY BOOM; I’M WE SAW THIS HUGE GAP WHERE REVENUES ARE REALLY GOOD EXPENSES WERE INCREASING BUT THERE’S AN ICE CAP. THEY’RE MAKING SOME NICE HEALTHY NET INCOME AND NOW THEY’VE URGED SELL THE PAST FEW YEARS THERE’S LITTLE NET INCOME BE MADE EXPENSES AND REVENUES ARE PRETTY MUCH THE SAME ACTUALLY FROM REVENUES FROM PRODUCTION HAS DROPPED 20% KIND OF CROP COMMODITY BOOM. SO WE WANT TO LOOK AT SOLVENCY AND LIQUIDITY ON OUR FARMS AND THIS IS THE DEBT TO ASSET RATIO. PER FARM IN AND SO THAT THAT TASK THAT LOOKS AT ALL THE DEBT COMPARE THAT ALL THE ASSETS AND WHAT’S THE PERCENTAGE OF THAT AND YOU CAN SEE IT BUT BY 2018 THE AVERAGE DEBT TO ASSET RATIO IS ABOUT 13% SO THE AMOUNT OF DEBT THAT FARMERS HAD WITH 13% OF WHAT THEIR ASSETS WE ACTUALLY TOOK A LOOK AT DURING WHAT WE CAN SEE THE FARM CRISIS BECAUSE EVERYBODY KEEPS SAYING LIKE WHERE ARE WE APPROACHING YOU KNOW THE 1980’S FARM CRISIS AGAIN. AND THAT RED LINE ON TOP WITH THE US AVERAGE FOR THAT TO ASSET RATIO IN THE UNITED STATES THAT WAS 90% AGAIN WE’RE AT ABOUT 30% RIGHT NOW SO WE’RE NOT REAL CLOSE BUT THERE’S A GOOD ARGUMENT TO BE MADE THAT THAT THE ASSET ISN’T ALWAYS A GREAT MEASUREMENT BECAUSE A LOT OF FOLKS ARE CURRENTLY WORRIED ABOUT LIQUIDITY AND THAT’S WHAT WE’RE SEEING A PRETTY BIG DROP OUT SO THIS IS THE CURRENT RATIO SO THIS IS LOOKING AT ASSETS EITHER CASH OR ASSETS THAT CAN BE CONVERTED TO CASH RATHER QUICKLY; LOOKING AND THEN WHAT THAT OBLIGATIONS NEED TO BE MET AND THE NEXT 12 MONTHS THAT’S THE CURRENT RATIO. AND RIGHT NOW YOU CAN SEE DOWN HERE. BUT THERE’S THIS HUMONGOUS DROP ON DOWN TO 2018 WE’RE AT ABOUT ONE 0.7. WHAT THAT MEANS IS FOR EVERY DOLLAR ONE $1.70 AN ASSET TO THE FARMER HAS. THERE’S ONE DOLLARS LIABILITIES SO WE’RE GETTING PRETTY CLOSE AND BAKERS THIS IS WHAT THEY LOOK AT WHEN THEY’RE PUTTING OUT LOANS THIS SPRING AS LOOKING AT THIS CURRENT RATIO AND THEY LIKE TO SEE IF IT GETS CLOSE TO 1.2 5. THEY GET PRETTY NERVOUS AND THEY’RE NOT GOING TO START LENDING. AND WE’RE GETTING CLOSER TO THAT WHAT THIS MEANS FARMERS ARE USING UP ALL OUR ASSETS TO MEET THE CURRENT APPLICATIONS AND ARE BURNING THROUGH SOME OF THEIR HEASLEY LIQUIDATED ASSETS TO MEET THEIR DEBT OBLIGATIONS. SO THAT’S WHAT FARM THAT’S WHAT’S HAPPENING ON FARMS. SO HOW DOES THAT TRANSLATE INTO COMMUNITIES IN RURAL AREAS. SHOOT SO THE FARM ECONOMY IMPACT LOCATIONS; WE’RE LOOKING AT EARNINGS AND SO EARNINGS IS FARMERS SOLE PROPRIETORSHIP. IT’S THAT GREAT AND THEY’RE NOT THIS IS AVAILABLE ON THE WEBSITE SO AND YET BECAUSE WE’RE IN THE MIDDLE OF THE 3 SHIPS BUT WE COULD SEND YOU THE PRESENT AND I WEBSITE I THINK YOUR PRESENT DAY OF HIS ON OUR WEBSITE. UNFORESEEN WE DON’T HAVE OUR COMPUTERS WITH THIS MOST OF US TODAY SO WE CAN SEE IT SO HOPEFULLY IT GETS.>>AND WE CAN REPAIR IT; BUT I’M. SO SO LOOKING AT FARMER $0.9 A FARMER NEEDS THIS ESPECIALLY THE NET INCOME SO THE INCOME FARMERS ARE MAKING AFTER PRODUCTION ALONG WITH SOME OF THE WAGES AND COMPENSATION BY HARD LABORS.>>WHAT YOU CAN SEE IS ON THE LEFT SIDE IS AN INDEX AND WE IN YOUR HAND OUT YOU’LL SEE WE HAVE LIKE THE YEAH WORLD EVERY COMMUTING AREAS SO WE HAVE COUNTY GREAT THE COUNTY GROUP THAT’S ENTIRELY WORLD A KIND OF GROUP THAT HAS A TOWN GIRL NEXT A COUNTY GROUP THAT ARE BEING POUND WORLD AND THEN COUNTY GROUP THAT’S ENTIRELY URBAN AND YOU CAN KIND OF SEE HOW THIS CATEGORIZATION WORK AND YOU CAN SEE THEY’RE ACTUALLY COUNTIES OUTSIDE OF THE 7 COUNTY METRO THAT ARE ENTIRELY URBAN WORTH COUNTY BEING ONE OF THEM. IN THOSE WE LIKE TO USE THIS DESIGNATION BECAUSE IT GIVES A LITTLE BIT MORE NUANCED BECAUSE THERE ACTUALLY AREN’T A LOT OF COUNTIES THAT ARE ENTIRELY IRVIN ARE ENTIRELY WORLD MOST COUNTIES OR SOMEWHERE IN BETWEEN AND SO THE EAST 5 LINES REPRESENT MINNESOTA IN THE NOSE FOR ROOKIE CATEGORIES. YEAH YOU COULD SEE A LITTLE BIT THERE NOW PERFECT YEAH YEAH THANK YOU APPRECIATE THAT. AND YOU CAN SEE THAT RED CIRCLE ON THE LEFT SIDE IS GROWTH AND FARM EARNINGS INDEX TO 2001 LEVELS NEW FEE DURING THAT CROPPED 90 BOOM THAT HUGE INCREASE RIGHT EVERY SINGLE A ROOKIE CATEGORY HAD ABOUT 600 TO 400% LARGER NET INCOME OR FARM EARNINGS COMPARED LEAD IN 2001 AND YOU SEE AFTERWARDS THAT HUGE DROP-OFF WHERE NOW FARMER NEEDS ARE AP IS THAT IT’S A PRETTY MUCH WHERE THEY WERE IN 2001. SO WE LACK A PAIR OF WHAT THOSE ARE IN TERMS OF TOTAL EARNINGS IF FAR EARNINGS MAKE UP A LARGE PERCENTAGE OF TOTAL EARNINGS FOR THESE AREAS THEN WE SHOULD SEE A SIMILAR SPIKE. ON THIS PARTICULAR CHART WILL SEE THAT ONLY ENTIRELY FROM RURAL AREAS THE ENTIRELY REAL COUNTY GROUP IS THE ONLY ONE WITH THE SPIKE ALL THE OTHER TYPES OF COUNTIES HAVE A DIVERSIFIED ENOUGH ECONOMY WHERE FARMERS DON’T MAKE UP A SIGNIFICANT PERCENTAGE OF THE HOME WHERE HE AND IN THOSE COUNTIES AND LET US THEY’RE A LITTLE BIT MORE STRAIGHT. YOU DON’T SEE THAT SPIKE SO AGAIN WE’RE KIND OF LOOKING AT ENTIRELY RURAL AREAS HAS BEEN THE ONES MOST IMPACTED BY EARNINGS. WE CAN LOOK AT EMPLOYMENT. SO THIS IS FARM EMPLOYMENT SO NOT A GOOD HISTORY EMPLOYMENT; THIS IS EMPLOYMENT SUCH A SOLE PROPRIETORS AND FOLKS WORKING ON THE FARM HIRED LABORS AND YOU CAN SEE THERE’S BEEN A DECREASE IN FARM EMPLOYMENT SINCE 2001; IT’S BEEN DROPPING OUT PRETTY STEADILY. THAT WAS A HUGE INCREASE DURING THE PROP MY BOOM EITHER THIS IS DUE TO A NUMBER OF FACTORS FARMS GETTING BIGGER MORE AUTOMATION THINGS LIKE THAT WE COMPARE THE TOTAL EMPLOYMENT INDEX OF 2001 4. ALL OF THE AREA. SO THE TOTAL EMPLOYMENT ON THE RIGHT SIDE OF THE CHART THERE AND YOU’LL SEE THAT. THEY’VE BEEN INCREASING IN OUR TAYLOR REALLY HASN’T BEEN SEEN IN THE CASES SINCE 2001 THERE ISN’T A LOT OF EVIDENCE THAT HIM CLIMATE FARM AND PLANT MAKES UP A BIG PERCENTAGE OF UNEMPLOYMENT IN OUR RURAL AREAS; HOWEVER; THIS IS PRETTY BIG GROUP SAYS SO WE THOUGHT GAIN A LITTLE BIT DEEPER TO KIND OF SEE OKAY MORE SPECIFICALLY FOR 80 YARDS AND AT THE COUNTY LEVEL ARE WE SEEING SOME WAS IMPACTS AND THAT’S WHERE YOU DO THIS IS 3 COUNTIES THAT WE POINTED OUT IN THAT HAND OUT THERE ARE 3 EATING OURS THAT WE POINTED OUT IN OUR HAND OUT THAT KIND OF HIGHLIGHT WHERE WE THINK THERE ARE SOME ISSUES RELATED TO EARNINGS WHERE THE FARMER IN TO MAKE A PERSON THAT SIGNIFICANT PORTION OF THE TOTAL EARNINGS IN THOSE COUNTIES AND THE ADRS THAT WE LOOK AT OUR 4 WHICH IS WEST CENTRAL 6 W WHICH IS FOR MINNESOTA RIVER VALLEY; SEX WITH COUNTY PARO TELEMEDICINE AND THEN 8 WHICH IS SOUTHWEST. THESE ARE BIG SHOCKERS RIGHT WE KNEW SOUTHWEST; MINNESOTA WOULD PROBABLY FEEL IT’S WORTH ANYWHERE ELSE. NORTHWEST WASN’T AS IMPACTED AS WE THOUGHT IT WOULD BE WE’RE KIND OF SURPRISED BY WE THOUGHT THERE’D BE MORE SIGNIFICANT DECLINES AND AGAIN YOU CAN SEE WE ACTUALLY COMPARE THESE 80 ARES WITH EDR THE ATR WHERE YOU’D THINK A COACH PLAYED A PRETTY BIG ROLE IN A LOT OF COUNTIES WEREN’T SHOWING A LOT OF IMPACTS IN A YEAR 9 YOU CAN SEE IT HERE AGAIN LOOKING AT FARM EARNINGS YOU SEEN THAT THAT SPIKE ON THE LEFT SIDE BUT ON THE RIGHT SIDE; IT’S ONLY LOS TREATY ARE THAT IT POINTED OUT THAT SHOW A SIMILAR SPIKE IN DECLINE. WHAT YOU DR. 9 KIND OF JUST CONTINUE THIS TRAJECTORY AGAIN ETR 9 HAS MEANT K DOING IT AND SELF ANY PLACE HAS A LARGE THERE ARE AN AREA THERE’S ENOUGH DIVERSIFICATION THAT YOU’RE NOT CAN SEE THE IMPACT THAT MUCH. THAT’S TALKING ABOUT FIRING AND NOW THERE’S THE WHOLE AIG INDUSTRY SIDE OF THINGS AND SO WE WORK WITH THE UNIVERSITY OF MINNESOTA DEPARTMENT OF PUBLIC BY THE ECONOMICS TO TRY AND COME UP WITH THE CATEGORIES IN WHICH FARMERS ARE LIKELY TO HAVE TO SPEND LESS IN ORDER TO COMPENSATE FOR THAT REDUCTION AND FARMS AND SO THESE ARE THE 4 CATEGORIES THAT WE’VE BEEN LOOKING AT FARM SHARE REPURCHASES BUILDING PURCHASES AND OR IMPROVEMENTS CROPLAND RENTAL PAYMENTS AND FOR THE LIFE OF PURCHASES OF THE COLUMN FOR MOST GIVE ABUL AS FAR AS BEING ABLE TO REDUCE THE SPENDING. SO WE LOOKED AT THE CROSS SALES FOR THESE A RELATED INDUSTRIES CAN COMPARE TO THE TOP GROW SALES AND WE CAN SEE THAT THE GREEN LINE RELATED BUSINESSES YOU SEEN THAT KIND OF SPIKE IN THE NET DECLINE OF GIRL SALES SINCE 2000 3 AND THEN ALL BUSINESSES YOU’LL SEE SOLVE THE GREAT RECESSION HIT HAD A LITTLE REDUCTION BUT THEN JUST KIND OF KEPT THEM PLUCKING ALONG SO THERE ARE SOME IMPACTS IN A RELATED INDUSTRIES. BUT WHEN WE LOOK AT BILLY INDUSTRIES AS PERCENT OF TOTAL EMPLOYMENT ACROSS OUR PLANNING REGENTS LIST EACH COLOR REPRESENTS PLANNING REGION YOU A LOT OF SOUTHWEST; MINNESOTA HAS THE HIGHEST WITH RIGHT AROUND 11%; THERE’S A COUPLE THINGS TO TAKE FROM THIS CHART ONE IS SOUTHWEST OBVIOUSLY HAS A HIGH PERCENTAGE. BUT THE SECOND THING IS THERE’S NOT TRENDS THERE’S NO BUMP WHEN PROP COMMODITY BOOM HIT THERE’S NO DECLINE WHEN THE COP MADDIE HAD PRICES HAVE GONE DOWN THEY’VE STAYED RELATIVELY FLAT WHICH IS KIND OF AND WILL COME TALK A LITTLE BIT ABOUT WHY THAT MIGHT BE HERE IN A FEW SLIDES. SO WE TOOK A LOOK AT WAGES TO SEE OKAY MAYBE FOLKS ARE YOU KNOW TAKE PAY CUTS OR WHAT MIGHT BE HAPPENING WAGES AND AGAIN WE’RE NOT SEEN ANYTHING BIGGEST COUPLE INTERESTING ELEMENTS IN THIS CHART ONE IS JUST SEEMS KIND OF GRADUAL INCREASE IN WAGES; NOTHING TOO BIG THE SECOND PIECE THAT BLUE LINE IS ACTUALLY 7 COUNTY METRO AREA. SO FOR A LOT OF METROPOLITAN COUNTIES IN THERE THAT MAY THINK YOUR COFFEE WITH A TOUCH YOU SOME OF THE HIGHEST PAID JOBS ARE ACTUALLY IN THE 7 COUNTY METRO WHEN IT COMES TO A RELATED INDUSTRIES; A PARTICULAR ON MERCHANT WHOLESALERS WHICH IS KIND OF INTERESTING AND YOU CAN SEE THE A RELATED INDUSTRY UP. EMPLOYMENT PER OUR WAGE PER EMPLOYMENT WAS RIGHT AROUND $72;000 IN THE 7 COUNTY METRO BY 2018. THE NEXT CLOSEST WITH SOUTHWEST AT $52;000 PRE SIGNIFICANT DIFFERENCE. IT’S KIND OF INTERESTING EFFECT THERE. AND AGAIN THIS IS LOOKING AT THE 2018 A RELATED HISTORY WAGES; PRINT CLIMATE MAP WIDE AND YOU CAN KIND OF SEE WHERE THE CONCENTRATION WAGES PER EMPLOYEE IS LOCATED IN THAT PARTICULARLY HAD OPINION AND RAMSEY COUNTY AND THEN DOWN IN BLUE EARTH BELOW AND IN THE SOUTHWEST SECTION YOU’LL SEE MORE WAGES. THAT’S JUST KIND OF INTERESTING TIDBIT I THINK I’LL LEAVE IT AT A MOVE AHEAD HERE SO WHY AREN’T WE SEEN BIGGER IMPACTS A NEWS A COUPLE THINGS ONE THAT THE STREET MENTIONED AS FARMERS ARE SHOULDERING THE DOWNTURN IN TAKING ON MORE DEBT. THEY HAVE TO CONTINUE TO PRODUCE STAFF TO TAKE ON MORE DEBT AND THEY HAVE TO CONTINUE BUYING SEED CONTINUE BUYING THE FERTILIZER AND DOING THEIR THING AND SO ESSENTIALLY ANY RIPPLE EFFECTS THAT ARE HAPPENING BECAUSE THE PRICES THEY’RE TAKING ON THAT ARE DONE IT’S NOT TRICKLING DOWN YET. HOW MUCH LONGER THAT CAN GO I DON’T ALSO FARMERS TEND TO INVEST WHEN TIMES ARE GOOD AND SO WHEN THE CRACK MIGHTY. BOOM KIND OF HAPPENED THERE AND THEY HAD WERE FLUSH WITH REVENUE THAT’S LIKELY WHAT A LOT OF PURCHASES HAPPENED. AND SINCE THEN THEY HAVE BEEN ABLE TO KIND OF STAVE OFF AND AND TO DO THEIR THING WITHOUT HAVING TO MAKE ANY SORT OF MAJOR PURCHASES OR ANYTHING LIKE THAT. AND ALSO YOU MENTIONED THE REAL ECONOMY IS MORE DIVERSE THAN PEOPLE THINK I’M THERE ISN’T AS DIRECT LINK FROM A CULTURE OF THE REAL ECONOMY AS PEOPLE WANT THERE TO BE IT’S NOT THAT IT IS AN IMPORTANT IT IS IN PART. BUT WHEN WE’RE LOOKING AT BREAUX COMMUNITY AND ECONOMIC DEVELOPMENT. THERE’S A LOT OF OTHER THINGS THAT NEED TO BE TAKEN INTO ACCOUNT WHEN WE’RE TALKING ABOUT THOSE PIECES. TO FURTHER RESEARCH WE’RE GOING TO BE LOOKING AT AND WE’D BE HAPPY TO ANSWER QUESTIONS AND ALSO TAKES HIM PUT IT WHAT YOU GUYS WOULD LIKE TO SEE BECAUSE WE’RE HERE FOR YOU. WILL BE LOOKING AT MORE NUANCED IMPACTS ARE MOST ROE CONN DR. COURSE; 6 W R AND 8. WE DIDN’T COOL INCLUDE RETAIL SALES. IN OUR ANALYSIS GOING TO BE INTERESTING TO SEE WITH LESS NET INCOME UNLESS EARNINGS FROM FARMS ARE THEY SPENDING LESS JUST ON RETAIL IN GENERAL HAS THAT MEAN IN THE HOUSEHOLD SIRE WHERE THEY CUT CORNERS. THE SECOND PIECE IS HOW MUCH LONGER CAN FARMERS HOLD WE’RE HEARING RUMORS OF MARINES; THAT’S LIKELY WE’LL SEE MORE BANKRUPTCIES. THIS THAT LOANS FROM BANKS MIGHT GET A LITTLE BIT TIGHTER LITTLE BIT HARDER TO COME BY. AND SO IT CAN BE INTERESTING TO SEE WHAT THE GENERAL IMPACTS FROM THAT OUR AIM IN HOW MY A DROP IN AGRICULTURAL LAND VALUES IMPACT PROPERTY TAX DEPENDING PROGRAMS. LAND VALUES ARE STAYING STUBBORNLY HIGH. I THINK PUT A CHARGE IN HERE; BUT WE HAVE THAT CHART THAT LAND VALUES GO ALMOST ONE TO ONE WITH THE INCREASES IN THE CROP COME OUT EVEN THE BOTH INCREASED AND NOW SCRAPPED 90’S THAT DECLINED THE LAND USE HAVE STAYED RELATIVELY STABLE MAYBE A LITTLE BIT FINE BUT NOT NOT NEARLY AS MUCH. AS BANKRUPTCIES HAPPENED AS BIGGER FARMERS COMING IN BY THE LANDER INSTITUTIONS COME UP BY THE LANDER’S LITTLE BIT OF A NERVOUSNESS ABOUT WHAT KIND OF LEVERAGE. THE PEOPLE HAVEN’T PURCHASING THIS LAND AND DROP PRICES IN LAND VALUES DOWN WHICH MIGHT HAVE SOME PRETTY SIGNIFICANT RAMIFICATIONS ON SCHOOL SCHOOL REFERENDUMS AND OTHER TECH PROPERTY TAX REFERENDUM FOR RURAL AREAS AS MOST OF YOU PROBABLY KNOW. ONE SCHOOL TO PASS A REFERENDUM AND CULTURAL LAND PROPERTY TAXES MAKES UP A SIGNIFICANT PORTION OF REFERENDUMS AND AND SO THAT WAS THAT’S GOING TO BE SOMETHING THAT WE’RE GOING TO KEEP AN EYE ON 2. SO JUST TO AND TO JUST TALK ABOUT THE REAL ECONOMY. WE DID A WHOLE RESEARCH PROJECT LAST YEAR TALKING ABOUT SHORT OUR WORKFORCE; SHORTAGES RURAL AREAS AT RISK EVERYWHERE ELSE AS 7 COUNTY METRO IS EITHER AT THE STATE LEVEL OR IF NOT FEELING MORE PRESSURE TO FILL JOB VACANCIES THEN THE ARE THE 7 COUNTY METRO THIS IS A ISSUE AND WHEN YOU TALK TO ANY OF OUR REAL COMMUNITY ABOUT BECAUSE THIS IS THE NUMBER ONE ISSUE THE TALKING ABOUT IS PEOPLE RECRUITMENT AND RETENTION AND SO I THINK YOU KNOW LOOKING AT THE NARRATIVE REALLY IS NOT DOING WELL FROM ECONOMY IS BAD THAT’S THAT’S THAT’S ACTUALLY A LITTLE BIT OF A DISS IT’S FOR REAL AREAS; WE’RE SEEING A TON OF OPPORTUNITIES AS FAR AS JOBS AND LIVEABILITY THAN EVER BEFORE SO AND THE LAST LARGE BARRIERS TO THAT WERE SEEN IN RURAL AREAS IS THE LACK OF HOUSING CHILD CARE FOR PEOPLE WITH DIFFERENT RETENTION. MADAM CHAIR I MOVE KAMIYAH WE’D BE HAPPY TO TAKE QUESTIONS AND HAPPY TAKE REQUESTS FOR ANY SORT OF DATE ARE SLIDES THAT HELPS PINPOINT THIS LITTLE BIT MORE AND I APOLOGIZE AGAIN ABOUT THAT RIGHT PREVENTION THAT’S OK. THANK YOU THANK YOU>>MISSED S YOU’RE RIGHT ABSOLUTELY THERE’S A LOT OF INFORMATION AND IT WAS SAID GLAD YOU ROLLED THROUGH IT AS QUICKLY YOU KNOW WE DON’T HAVE THAT ALL DAY TO BE ABLE GET THE SEMINAR THAT HAS YOU DESERVE TO HAVE SO I APPRECIATE THAT YOU ARE ABLE TO DO THAT; I’M YOU KNOW; I’M WONDERING WHEN WHEN YOU’RE GOING TO BE COMPLETING THIS KIND OF PROCESS AND THE YET MONDAY ANTICIPATE THE CHIP POPPY THANKS PLANNED THIS THIS NEXT MONTH. SO IT’S GREAT FOR THE REST AND THE NEXT FEW WEEKS WE WERE IN THE PROCESS OF RUNNING THE STATED BY FEW MORE EXPERTS JUST TO MAKE SURE WE’RE TALKING ABOUT THINGS WRITING WE WANT TO GET SOME MORE EVIDENCE ON THE GROUND WE LIKE TO DO THE DATA THING BUT WE WANT TO TRY AND FIND.>>YOU KNOW GO TO SWIFT COUNTY AND SOME OF THE OTHER COUNTIES THINK A LITTLE BIT MORE KIND OF ON THE GROUND; HOW’S IT FEELING HOW THE SHAKING OUT THINGS LIKE THAT BECAUSE ANECDOTES ARE HELPFUL WHEN IT COMES TO THE DATA AND PUT DROWNED IN C.>>I THINK WHEN WE WHEN YOU GET TO THAT POINT MAYBE WE’LL HAVE A AND THIS SET TIME THAT WE COULD HAVE YOU DO A PRESENTATION MAYBE NOT EVEN WITHIN THE COMMITTEE; BUT NOW SET ASIDE A ROOM WHERE YOU’D BE ABLE TO GIVE US SOME INFORMATION MAY THINK THAT WOULD BE HELPFUL IT IS AND HAVE HANDOUTS. YES THAT WOULD BE HELD AT THE END. I’M OK SO WE’VE GOT 4 PEOPLE ON THE LIST; NO ROLL RIGHT THROUGH THEM REPRESENTATIVE ANDERSON.>>JUST VERY QUICKLY THANKS MADAME CHAIR; A QUICK QUESTION ON YOUR YOUR STATISTICS ABOUT COMPARING METRO AREA AND RELATED JOBS TO THE GREATER MINNESOTA AREA; YOUR METRO AREA JOBS INCLUDE FOR EXAMPLE; A CEO IS OF CHS LAND O LAKES CARGILL TO REALLY SKEW THAT NUMBER INSTEAD.>>YET YOUR POPPY REPRESENTED ANDERSON; YEAH; I THINK ABSOLUTELY IT YEAH THAT’S GOING TO SKEW IT ALSO THESE ARE THE TYPES OF JOBS WHERE IT MIGHT NEED THAT DESIGN MARKETING COMMUNICATIONS THINGS THAT ARE MORE KIND OF 95 I’M I WANT TO TAKE COLLEGE LEVEL TYPE JOBS; BUT MORE THAT KIND OF ADMINISTRATIVE TYPE MANAGEMENT POSITIONS THAT PROBABLY WHERE THEIR HEALTH. PERCENT OF CLEVELAND.>>THANK YOU MADAM CHAIR; AND MY QUESTION IS RELATED TO THAT ISSUE I REPRESENT PLYMOUTH MINNESOTA. SO WE HAVE I ASKED SPECIFICALLY TO BE ON THIS COMMITTEE BECAUSE WE HAVE A LOT OF FOOD AND HAD RELATED EMPLOYMENT AND THEY ARE GOOD PAYING JOBS AND NOT FACE UP AGRICULTURAL CHAIN I TAKE YOU THERE IS CHANGING THE FACE IS CHANGING SO. WHEN WE’RE THINKING ABOUT AGRICULTURE GOING FORWARD AND WE’RE LOOKING AT POSITIONS THAT CAN BE DONE OUTSIDE OF THE RULE. ERICA THE WORLD LIVING AREA; BUT I’M STILL VERY MUCH IMPACTING THAT ECONOMY. I’M WONDERING WHEN YOU LOOK AT THE TOTAL PERCENTAGE OF AG RELATED EMPLOYMENT FOR SAYS OUR STATE EMPLOYMENT AS A WHOLE WHAT DO YOU KNOW THAT PERCENTAGE THAT TRULY IS I MEAN I SAW THE DATA I USE MY PHONE TO FEATURE SLIDES VERY HELPFUL. DO YOU HAVE THE DATA AS TO THAT COMPARISON FOR TOTAL AD FOOD AG AND FOOD RELATED EMPLOYMENT. VERSUS THE STATE EMPLOYMENT NUMBERS; YEAH.>>IT’S NOT YOUR POPPY I’M REPRESENTATIVE YES I DO HAVE THAT DATA UM I DON’T HAVE THE EXACT NUMBER AT THE TOP MY HEAD. I THOUGHT MY HEAD; BUT I AM. USUALLY WHEN WE COMPARE SO THAT THE IF YOU TALK IN JUST A GUN DISTRICT SO NOT FARM EMPLOYMENT; NOT FARMERS. YOU’RE TYPICALLY LOOKING AT STATEWIDE I’M ACTUALLY TALKING ABOUT AG AND.>>FOOD SO.>>YEAH; GAS OF A FLIGHT FOOD MANUFACTURING; YES. WERE TYPICALLY I HAVE TO LOOK BACK BUT I WANT TO SAY IT’S 3 TO 6%. IT’S NOT HUGE OF THE TOTAL STATE EMPLOYMENT. YEAH; YEAH; YEAH; YEAH THANK YOU CHIP REPSONDED HANDSOME. THANK YOU MADAM CHAIR AND. I THINK YOU TOUCHED ON.>>HE CATCH 22 THAT’S THE OVERALL CHALLENGE AND AGRICULTURE AND THAT’S THE ISSUE OF LAND AVAILABILITY. AND BECAUSE LAND VALUE THEY HIGH THEN EMERGING FARM THERE’S CAN’T GET LAND. AND DID YOU LOOK AT THE IMPACT. FIT PAYMENTS IN TERMS OF KEEPING LAND VALUES ARTIFICIALLY HIGH. AND EVEN OUR TAX POLICIES WERE TRYING TO HELP FARMERS BUT ACTUALLY BECAUSE WE MAY KEEP THE LAND VALUES HIGH WE PREVENT. EMERGING FARMERS AND I DON’T MEAN PASSING IT ON TO THE CHILDREN. I MEAN NEW FARMERS COMING IN WHO NEVER FARM BEFORE THEY CAN’T GET LAND BECAUSE THE LAND VALUES ARE NOT GOING DOWN AND I UNDERSTAND ABOUT HAVING EQUITY AND PEOPLE HAVE THEIR INVESTMENTS AND THEIR LAND. UNTIL LAND VALUES COME DOWN WE’RE NOT GOING TO HAVE LAND AVAILABLE. AND THERE IS LAND HARDIN GOING ON OUT THERE THERE’S PEOPLE WHO HAVE LANDED THEY CAN AND THEY CAN GET THE LOANS TO BUY MORE LAND. AND SO THEN THEY MAY BLOCK OUT PEOPLE AT TONS WHO MAY HAVE THE OPPORTUNITY TO GET IN THERE TOO. WHAT IS THE SOLUTION TO THAT LAND HOARDING. LAND A LAND VALUE. STABILIZATION THAT’S GOING ON.>>MISTER AND I’M NOT SURE YOU CAN ANSWER THAT IN 30 SECONDS. YOU CAN GET THE ANSWER AND I KNOW YOU KNOW WHEN WE GET TO THE NEXT. I’M PART OF THAT OR A MEETING WE ARE GOING TO BE TALKED ABOUT EMERGING FARMERS AND WHAT ARE SOME OF THE THINGS GOING ON WITH THAT SO WELL WE’LL HIT ON THAT A LITTLE BIT BUT GO AHEAD.>>YEAH; SURE POPPY I’M A TON OF HITS AND THANKS FOR THE QUESTION. UM I WROTE WROTE IT DOWN. I HAVEN’T LOOKED INTO ALL I KNOW IS JUST AN TOTALLY WHAT PEOPLE ARE KIND OF PREDICTING A THINGS TO HAPPEN AND YOU KNOW WE’RE AT A TIME WHERE. THE MOST EFFICIENT AND COST EFFECTIVE FARMERS ARE THE ONES THAT ARE GOING TO BE ABLE TO BUY UP THE LAND OF ANYONE THAT MIGHT BE BANKRUPT. AND. RIGHT NOW THAT’S WHERE THE MARKET IS THAT IN SO I DON’T KNOW WHAT THAT KIND OF IMPACT THAT CAN HAVE ON LAND VALUES AND I WROTE DOWN THE PROGRAM NOT A BUNNY PLUS LOOKING TOOK THAT’S OUR NEXT PHASE IS ON THIS RESEARCH PROJECT LOOKING AT LAND STUFF SO AND THEN ANSWER THAT I’M SORRY THANK YOU REPRESENTATIVE HAMILTON.>>THANK YOU MADAM CHAIR AND THANK YOU REP; SOME HANDSOME FOR THE QUESTION AT A SIMILAR ONE. LAND VALUES; HE SAID STUART WE THE TRACK WITH VARYING PRICES ARE COMMODITY PRICES AND CURRENTLY THEY’RE NOT WHY IS THAT THE STAFF. CHAIR REPRESENTED HEALTH THAT I DON’T HAVE A GOOD ANSWER FOR THAT I DON’T KNOW YET THAT I WOULD LIKE TO CORRECT THAT IT JUST SINCE 2001 THEY TRACKED ALONG WITH THAT COME OUT EVEN THE FACT REALLY REALLY NICELY AND THEN THEY HAVEN’T SINCE I DON’T KNOW WHAT THANK YOU.>>COULD THIS SOUNDS LIKE WE’LL HAVE A WE’LL BE ABLE TO DO THIS AGAIN MAYBE IN A COUPLE OF MONTHS BEFORE THE END OF SESSION WILL WE’LL BE ABLE TO HEAR MORE AND AND THE CERTAINLY OF PEOPLE HAVE QUESTIONS OR HAVE IDEAS TO BEGIN REACH OUT TO YOU MISS TESTS AND A CHAIR POPPY IN COMMITTEE. THANK YOU VERY MUCH; I JUST WANT TO MENTION THAT YOU’RE GOING TO BE SEEING A LOT OF THINGS COMING OUT FROM THE CENTER HERE THE SESSION SO WE HAVE THIS PUT THIS RESEARCH PROJECT GOING ON.>>WE WILL ALSO BE RELEASING A PROJECT ON A RURAL HEALTH CARE IN A HOSPITAL MERGERS HERE COMING UP IN THE COMING MONTHS AS WELL. AND IF YOU WANT TO FIND US WE’RE ON SOCIAL MEDIA. WE’RE STARTING A POD CAST NEXT WEEK WE’RE HAVING VIDEOS. BRAND NEW WEBSITE; THE WHOLE 9 YARDS AND YOU WILL ALL BE GETTING OUR ONLINE NEWSLETTER AS WELL SO MAKE SURE TO READ THAT WE’RE HERE TO SERVE YOU IN TO GIVE YOU THAT INFORMATION ABOUT RURAL MINNESOTA. SO THANK YOU VERY MUCH.>>THANK YOU SO MUCH; THANK YOU. SHE ATE IT AND STAY SAFE DRIVING HOME IN THE CAKE. SO WE’RE TURNING OVER NOW TO THE EMERGING FARMERS REPORT THEY GET ASSISTANT COMMISSIONER PATRICE AND MR. BAILEY THIS IS AS HIS FIRST TIME BEFORE OUR COMMITTEE I BELIEVE AND HIS ROLE AND WE WELCOME HIM OR HAPPY TO HAVE AND I KNOW; I’M I KNOW I ATTENDED ONE OF THE EMERGING FARMERS SESSIONS; MANY OTHERS DID AS WELL; BUT YOU NOTICE; IT WAS GOOD INFORMATION TO SHARON TOGETHER TOGETHER. WE ALSO HAVE A KAGAN THIS GOING TO AND PROVIDE SOME INFORMATION AND THEN WE’VE GOT SOME PEOPLE WHO HAVE TRAVELED A DISTANCE SO WE’RE GOING TO TRY TO GET EVERYBODY M TECHNICALLY WE ONLY HAVE ABOUT 60 MORE MINUTES OF THE COMMITTEE. BUT IF WE MAY HAVE TO GO OVER JUST SAY YOU KNOW; I’M WE MAY BE BINDING OVER THAT 1115 MARK SO APPRECIATE IT AND GO AHEAD MISTER BAILEY WELCOME TO THE THANK YOU SO MUCH.>>CHAMP HAPPY AND COMMITTING A MINING WITH PATRICE BAILEY; I’M THE ASSISTANT COMMISSIONER AT THE DEPARTMENT OF AGRICULTURE; THIS IS MY 7TH MONTH OFFICIALLY; AND I DID THE 6 DIVISIONS I HAVE 3 THEM RESPONSIBLE FOR AG MARKETING DEVELOPMENT. FOR THAT THE SAFETY WHICH IS WHICH ALSO INCLUDES PET FOOD AND DAIRY AND MEAT INSPECTION SO TO REGULATORY AND ONE DIVISION THAT PRETTY MUCH HAS EVERYTHING IN IT. IT’S A LITTLE BIT ABOUT MYSELF I’M NOT FROM A MINNESOTA RECENTLY I GREW UP IN HARLEM 5 BLOCKS FROM THE APOLLO WENT TO COLLEGE IN A HURRY; IF YOU ATE THEM IN TEXAS IS STARKLY BLACK COLLEGE UNIVERSITY. AND THEN MY MASTERS IN AGRICULTURE EDUCATION AT IOWA STATE SO I HAVE BEEN HERE 2005 SO. WELL THE MEREST AND THE COLD WEATHER NOW AND THIS REALLY HAPPY TO BE THIS IS A GREAT OPPORTUNITY TO ACTUALLY BE HERE BEFORE YOU. BUT BEFORE I GO INTO THAT JUST WANT TO LET YOU KNOW THAT ARIEL AND I WOULD DEFINITELY SO THEY GIVE YOU THE THE THE BREATH AND THE SCOPE OF THE REPORT AND THEN WE HAVE 3 TESTIFY AS THAT WE’RE GOING TO ACTUALLY HAVE SO THE THE THE REAL FOLKS THAT WE ACTUALLY GOING TO BE TALKING ABOUT COME TALK TO YOU ABOUT THIS REPORT. AS I COMMISSION PETERSON WANT TO ME TO PUT TOGETHER EMERGING FARMER TASK FORCE BUT BEFORE THAT I HAD TO PUT TOGETHER A WORKING GROUP AND THEY’RE WORKING WE DECIDE TO HAVE ONE. SESSION. A LISTENING SESSION AT IN WE INVITED AS MANY GROUPS INCLUDING HALF UH HUH WE HAD GROUP STAFF FROM THAT WERE HEARD IN THE MASTER GARDENERS AS WELL AS. FARMERS FROM AROUND THE STATE THEY CAME TO THIS LISTENING SESSION. THIS LISTENING SESSION ALLOWED US TO BE ABLE TO. SO THEY GATHER SOME OF THE ISSUES AND BARRIERS THAT WERE HAPPENING IN REAL TIME AROUND THE STATE AND THEN CONSEQUENTLY WE’RE GOING TO GO AHEAD 5 LISTENING SESSIONS. WE STARTED THOSE 5 LISTENING SESSIONS AND NOVEMBER. IT STARTED IN NOVEMBER WE START IN CROOKSTON AND WE HOPE FOR GREAT WEATHER WE’VE GOT GREAT WEATHER. AND THE GREAT THING ABOUT THIS IS THAT I WANTED TO BE ABLE TO SEE. THOSE ARE THE MOST EFFECTIVE IN REAL TIME. I’M ON THE GROUND TO FIND OUT WHAT THE BARRIERS ARE WERE FOR MYSELF. I’M ALSO TO ACTUALLY HEAR. FROM EMERGING FARMERS THEMSELVES AND WE TALKED ABOUT THE TERM EMERGING FARMERS. WE’RE TALKING FARMERS FROM ANYWHERE FROM NO EXPERIENCE THAT ABOUT 10 YEARS EXPERIENCE AND WE’RE ALSO TALKING ABOUT THE GROUPS THAT WE’D BE SORT OF LOOKED AT 5 GROUPS TO COMPRISE AND HIGHLIGHT IN THIS REPORT. WOMEN FAT TRANS PERSONS WITH DISABILITIES LBGTQ. THE VETERANS. COMMUNITIES OF COLOR IN NEED OF INDIGENOUS THOSE WITH TO THE GROUPS THAT ARE NOT. PROMINENTLY ON AGRICULTURAL LANDSCAPE AS WE SEE THE IN MINUTES SO THAT WE HAVE ABOUT 68;000 FARMS. AND OUT OF THOSE FARMS IF I PUT THOSE GROUPS THAT JUST NAME COLLECTIVELY TOGETHER. IT DOESN’T ADD UP TO ABOUT CONSTITUENTS ARE FOR FARMERS. ACCORDING TO THE 2017 AGRICULTURE CENSUS. ONE OF THE THINGS THAT UM I WANTED TO TO HIGHLIGHT WAS THE PROCESS. THE PROCESS THAT WE WENT INTO. THESE LISTENING SORT OF ROME; ORGANICALLY THEMSELVES IT WASN’T HIS HEARING ABOUT THE BARRIERS WE ALSO TALKED ABOUT SUICIDE WE TALKED ABOUT RULE OF THEM MET WITH HEALTH CARE. WHICH ALL PREVENTING PEOPLE FROM BECOMING AGRICULTURAL ENTREPRENEURS AS WE AS THE BABY BOOMERS ARE RETIRING AND WE HAVE MILLENNIAL CHILDREN WHO DID NOT WANT TO DO. SO THE TAKE ON THE FARM WE HAVE A LOT OF NEW PEOPLE THAT ARE LOOKING FOR FOR A WAY TO GET IN AND LAND IS THE BIGGEST BARRIER. AMONGST MANY OTHERS BUT LANFORD 25 MILLION ACRES IN MINNESOTA OF THE DAY HAS TO BE LAND THAT WE HAVE SET ASIDE FOR. HOW POPS UP IN ORDERS SO OUT OF ALL 6. I’M LISTENING SESSIONS. WE HAD ABOUT A 144 PEOPLE PARTICIPATED WANTED TO THINK OF THOSE WHO WAS ABLE TO COME TO OUR LISTENING SESSIONS; INCLUDING CHAIR POPPY AS WELL AND WE REALLY WANT TO TO FIND OUT. WHAT WAS WHAT ARE THE ISSUES AND HOW CAN WE BE ABLE TO ASSIST. I’M NEVER GOING TO AEREO AND HE REAL-TIME TALK ABOUT THE SCOPE AND THE TEENS RECOMMENDATIONS THAT CAME UP.>>WELCOME TO THE COMMITTEE AND JUST STATE YOUR NAME AND THEN GO AHEAD KATE; THANK YOU I MEAN IS THERE OKAY AND THEY WORK IN THE ACT MARKET IN ABOUT ONE TO 10:00AM D A. WHAT I THINK WE’RE TALKING ABOUT HERE REALLY IS THAT AGRICULTURE IS CORNERSTONE OF MINNESOTA AND THIS IS ABOUT HOW WE OPEN THE OPPORTUNITY OF THE AG ECONOMY AND THE CULTURE IN A SOCIAL VALUE THAT THAT HAS TO ALL MINNESOTANS SO THE REPORT WHICH I BELIEVE YOU ALL HAVE A COPY OF DOES GO INTO THE SPECIFIC CATEGORIES BUT THIS COMMITTEE INSTRUCTED US TO LOOK INTO FURTHER. BUT WE ALSO BROADENED IT BECAUSE AS WE HAVE IS LISTENING SESSIONS WE ASKED PEOPLE WHO SHOWED UP WHAT YOU BELIEVE IN EMERGING PARTNER IS AND THE DEFINITION OF THAT REALLY EXPAND IT’S TO INCLUDE OTHER IDENTITY CHARACTERISTICS; CERTAIN PRACTICES WERE BROUGHT UP AS SOMETHING THAT PEOPLE SEE AN AMERICAN FARMERS AND A VALUE SYSTEM. WELL IT’S REALLY IMPORTANT WHAT WE HEARD WAS THAT PEOPLE WHO IDENTIFY AS AMERICAN FARMERS; HE’LL UNSEEN OR ON REPRESENTED IN OUR CURRENT AGRICULTURAL SYSTEM BOTH IN THE MARKETS THAT ARE AVAILABLE TO THEM A POLICY AND THE RESOURCES THAT ARE OUT THERE TO SUPPORT THEM. SO SOME OF THE THEMES NOTHING GROUNDBREAKING HERE WE WE KNOW THAT THESE ARE ISSUES FOR ALL FARMERS IS LAND AVAILABILITY AND PRICES FINANCIAL BARRIERS MARKET ACCESS AND INFRASTRUCTURE; EDUCATION AND TRAINING RESOURCES AND WE HEARD FROM A LOT OF FARMERS THAT MENTORSHIPS WERE SOMETHING THAT WAS REALLY LAKIN AS THEY LOOK TO GET INTO FARMING. WE ALSO HEARD ABOUT DISCRIMINATION AND RACISM AND SEXISM THAT PEOPLE EXPERIENCE AND IT’S SOMETHING THAT THEY CONFRONT AS THEY TRY TO ENTER THIS FIELD THERE ARE A NUMBER OF OTHER THEMES AS WELL THAT ARE ALL DETAILS IN THE REPORT. AND I THINK WHEN WE ARE TALKING ABOUT MERGING FARMERS. WE HAVE TO THINK ABOUT CAPITAL RESOURCES SO THAT OBVIOUSLY IS FINANCIAL CAPITAL THERE LOW AT THAT. INDIVIDUALS TYPICALLY NOT ALWAYS BUT SOMETIMES AND A LOT OF FARM PROGRAMS ASSUME CAPITAL ASSETS TO BEGIN ON FARMING BUT THERE THAT’S INHERITED LAND THE ABILITY TO GET LOANS THINGS LIKE THAT. BUT THERE ARE OTHER ASPECTS OF CAPITAL AS WELL SO HUMAN SOCIAL AND NATURAL CAPITAL THAT EMERGING FARMERS HAVE AND STRENGTHENING THOSE RESOURCES THAN OTHER WAY TO SUPPORT THEM IN THERE GROWTH IN THE FIELD. SO. FROM A NUMBER OF FOLKS WE HAD A 140 SHOW UP IN PERSON AND THEN WE ALSO HAVE AN ONLINE SURVEY THAT WAS OPEN. THIS IS A COLLECTION OF THE SPOTS THAT WE HEARD THAT ARE INCLUDED THE REPORT AND I’M THRILLED THAT WE HAVE 30 FOLKS HERE THAT CAN ACTUALLY BE THAT WHAT WE HEARD WAS WIDE RANGE AND EVERY THING FROM THAT LAND ACCESS ISSUE 2 WORLD HEALTH CARE AND CHILD CARE SERVICES. THE INFRASTRUCTURE TO SUPPORT LOCAL PROCESSING WHICH WE JUST HEARD ABOUT WITH HEMP. AND OTHER THINGS ABOUT RELATIONSHIPS AND MENTORSHIPS CLIMATE CHANGE AND POLICY. BEFORE WE TURN IT OVER I DID JUST WANT TO TALK ABOUT IN THE REPORT THERE ARE SOME RECOMMENDATIONS. ESTABLISH AN EMERGING FROM A TASK FORCE THAT CAN PROVIDE EXPERT INSIGHTS AND GUIDANCE TO THE DEPARTMENT ABOUT HOW WE CAN BETTER SUPPORT EMERGING FARMERS. I THINK WHAT REALLY THE TAKE AWAY IS THAT THAT THERE IS NO ONE SOLUTION TO THIS NEED TO BE HOLISTIC AN INTERSECTIONAL APPROACH IS UNDER STANDING IN HOW TO SUPPORT EMERGING FARMERS AND TO CREATE A VISION FOR HOW OUR AGRICULTURAL ECONOMY CAN BE INCLUSIVE. FOLKS WHO WANT TO GET INVOLVED IN OUR MEAN WHICH I THINK IS SOMETHING THAT MOST OF THE SHERIFF; SO I’M HAPPY TO PASS IT OFF TO THE NEXT THE FACT YES TO. IT REPRESENTED HAMILTON.>>THANK YOU MADAM CHAIR; MY QUESTION IS ON THE BACKGROUND TO TALK ABOUT REES PERCENTAGE OF MINNESOTA POPULATION AND PERCENT AND PERCENTAGE OF MINNESOTA FARMERS IS THAT TAKEN IN CONSIDERATION; FARM OWNERSHIP OR DOES THAT ALSO IN THE APARTMENT POINT. GO AHEAD OF HIS FINANCE THAT HER SHOW.>>MADAM CHAIR AND REPRESENTATIVES THAT THAT IS PRINCIPAL OPERATORS FROM THE NATIONAL AG CENSUS OF 2017. POPPY I WOULD LIKE TO INTRODUCE OUR EMERGING FROM US; I WOULD LIKE TO START OFF WITH.>>EARNHARDT FROM MEDICINE; A CREEK. AND FITNESS AND MINNESOTA.>>THANK YOU AND YOU KNOW WHAT I’LL HAVE ALL 3 OF YOU TO COME TO COME UP AND THEN YOU CAN SET AND JUST AGAIN APOLOGIES. NOW WE DO OUR BEST TO TRY GET THE RIGHT TIME; I’M A FOR A COMMITTEE MEETING AND WE WANT TO GOOD PARTICIPATION FROM THE COMMITTEE AS WELL SO THIS TIME WE’RE RUNNING OVER AND MY APOLOGIES TO THE COMMITTEE MEMBERS I THINK IF YOU’RE ABLE TO STAY WE WANT TO BE ABLE TO DO THAT AND HEAR FROM ALL OF THAT ALL OF THE PEOPLE THAT ARE HAVE TRAVELED TO THE HAVE I WILL BEGIN WITH YOU IF YOU JUST STATE YOUR NAME YOU CAN BEGIN. THANK YOU CHAIR POPPEA MEMBERS OF THE COMMITTEE FOR THE RECORD MY NAME IS HANNAH BERNHARDT.>>AND I’M THE OWNER AND PRINCIPAL OPERATOR OF MEDICINE CREEK FARM INFAMOUS IN MINNESOTA. SINCE 2016; I’VE BEEN RAISING GRASS-FED BEEF AND LAMB AND PASSION PORK. MY HUSBAND WORKS FROM JOB AND WE HAVE A 3 YEAR-OLD WHO MOST DAYS FARMS ON SITE. I ONE OF THE GROWING NUMBER OF NEW REGENERATIVE FARMERS IN MINNESOTA. HIS MANAGEMENT INTENSIVE ROTATIONAL GRAZING PRACTICES MOVING MY COWS AND SHEEP DAILY TO FRESH GRASS TO OPTIMIZE SOIL HEALTH AND REGENERATE OUR LAND WHICH HAVE BEEN CONVENTIONALLY CROPPED AND HAD BEFORE WE TOOK OWNERSHIP. WE HAVE NO BOND FOR LIVESTOCK ASTRONAUT ANIMALS 365 DAYS A YEAR. AND WE KEEP 5 LIVESTOCK ARE IN TALKS TO DETER PREDATORS. WE BELIEVE WE CAN FARM ALONGSIDE A THRIVING NATURAL ECOSYSTEM; INCLUDING RULES AND COYOTE IS AND OUR PASTORS OR FALLEN GROUND-NESTING BIRDS LIKE BOB LINKS AND METAL ACTS THAT ARE QUICKLY LOSING HABITAT ELSEWHERE. A DIRECT MARKET; I MEET FOR A PREMIUM PRICE TO CUSTOMERS PRIMARILY IN THE TWIN CITIES AND DULUTH THEIR WEBSITE AND SOCIAL MEDIA AND I’M FORTUNATE TO BE 20 MINUTES FROM ONE OF VERY FEW USDA PROCESSORS IN MINNESOTA LAKE HAVEN MEETS IN STURGEON LIKE. MY CUSTOMERS BUY FROM US BECAUSE THE CARE ABOUT ANIMAL WELFARE AND HUMANE TREATMENT OF LIVESTOCK; THE HEALTH OF THE FOOD THEY EAT AND TRANSPARENCY OF OUR PRACTICES AND OUR CARE FOR THE ENVIRONMENT; WILDLIFE WATERSHED. I JOINED ASSISTANT COMMISSIONER; BAILEY AND HIS FOR HIS EMERGING FROM A LISTENING SESSION IN DULUTH BECAUSE THEY BELIEVE THAT HELPING BEGINNING FARMERS GET ON THE LAND WILL MAKE OUR FOOD SYSTEM ARE RESILIENT FOR EVERYONE. I GREW UP ON A CORN AND SOYBEAN FARM IN SOUTHERN MINNESOTA IN THE 80’S AND DID NOT EXACTLY GET THE MESSAGE THAT FARMING WAS A HIGHLY DESIGN THE ONLY WAY TO TRY TO MAKE A LIVING AS I LEARNED MORE ABOUT DIRECT MARKET LOCAL FOOD SYSTEMS I BEGAN TO SEE A GLIMMER OF HOPE THAT THERE COULD BE A WAY FOR FARMERS TO GET OUT FROM UNDER THE FOLD OF LARGE AGRIBUSINESS CORPORATIONS AND VOLATILE COMMODITY MARKETS. THE GROWING SUCCESS OF ORGANIC AND SUSTAINABLE FARMERS SPOKE TO MY WORRY UP WITH US THEY OF OUR ROAD IN FARMLAND; THE HEALTH EFFECTS OF WIDESPREAD HERBICIDE USE AND RURAL COMMUNITIES AND THE INCREASINGLY GREEN ENSEMBLE LAKES OF MY HOMETOWN. WHEN I BEGAN LEARNING MORE ABOUT SOIL HEALTH AND THE INCREDIBLE RESEARCH THAT PROPERLY MANAGED ROTATIONAL A GRAZE LIVESTOCK COULD ACTUALLY SEQUESTER CARBON AND FIGHT CLIMATE CHANGE I WAS CONVINCED TO MAKE MY WAY BACK TO AGRICULTURE. BUT DESPITE MY FARMING BACKGROUND HAVE STILL ENCOUNTERED NUMEROUS OBSTACLES ESTABLISHING MY FARM BUSINESS AND I’D LIKE TO MAKE A FEW RECOMMENDATIONS BASED ON THE REPORT AND WORK OF THE MINNESOTA FARMERS UNION. BUT I BELIEVE CAN MAKE A REAL DIFFERENCE FROM URGING FARMERS. FIRST I BELIEVE INCREASING BEGINNING FARMER TAX FROM 5 TO 10% BUT STRENGTHEN THE PROGRAM AND ITS ABILITY TO HELP YOUNG FARMERS ACCESS LAND. DESPITE MY FAMILY OWNING FARMLAND; I WAS UNABLE TO PURCHASE IT BECAUSE MY PLAN TO DIRECT MARKET MEET COULDN’T CATCH WELL EXPENSIVE LAND PRICE FOR COMMODITY CROPS. WHEN MY HUSBAND AND I FOUND AFFORDABLE AND THE NORTHEAST; MINNESOTA CREDIT UNION TOLD US WE QUALIFIED FOR A LOAN TO BUILD A HOUSE THERE BUT BECAUSE WE’RE PLANNING TO ACTUALLY FARMLAND IT WAS TOO RISKY. INSTEAD WE SPENT NEARLY 6 MONTHS BUT FENDER BUT THE FRIENDING THE LANDOWNER UNTIL HE AGREED TO A CONTRACT FOR DEED HAD THE BEGINNING FARMER TAX CREDIT BEEN IN PLACE AT THAT TIME WERE CERTAIN IT WOULD HAVE BEEN A MAJOR INCENTIVE FOR DECIDING TO SELL TO US. I WOULD HAVE BEEN A HUGE HELP TO OUR OWN BUDGET. SECOND ADDING AN ADVANCE PAYMENT OPTION FOR GRANT FUNDING TO EMERGING FARMER; HERE’S WHAT HELP THOSE WITHOUT INHERITED LAND OR EQUIPMENT AT THEIR FARM BUSINESSES STARTED AS IT STANDS MANY OF THE GRANT OPPORTUNITIES; THE STATE OFFERS WORK ON A REIMBURSEMENT MODEL RECLAIM FARMERS TO FRONT THE COST OF THE PROJECT THUS LIMITING ACCESS TO THOSE WHO ALREADY HAVE A SIGNIFICANT AMOUNT OF MONEY IN THE BANK OR THE ABILITY TO SECURE ADDITIONAL LOANS. WE ENCOUNTERED THIS PROBLEM AND WE RECEIVED AN EQUAL GRANT FOR FENCING BEFORE THEY IMPLEMENTED THEIR ADVANCE PAYMENT OPTION. I HAD ALREADY MAX OUT THE AMOUNT THEY CAN BORROW UNDER THE FARM SERVICE AGENCY’S MICROLOAN PROGRAM TO GET THE EQUIPMENT AND LIVESTOCK CERTAINLY OPERATION. FURTHERMORE DON’T QUALIFY FOR OFFICES; REGULAR LOAN PROGRAM BECAUSE OF THE UNCONVENTIONAL ARRANGEMENT UNDER CONTRACT FOR DEED THAT ALLOWED US TO PURCHASE ISLAND. ULTIMATELY I FINANCED THE PENS WITH CREDIT CARDS AND A FAMILY ON. SIMILARLY MANY EMERGING FARMERS WOULD BENEFIT FROM THE CREATION OF SPECIFIC GRANT OPPORTUNITIES WITH HIGHER CAUTION PERCENTAGES TO ESTABLISH NEW FARM BUSINESSES. FOR EXAMPLE; I’VE BEEN RAISING CATTLE AND SHEEP FOR 4 YEARS NOW WITH THE MAKESHIFT WORKING SYSTEM COBBLE TOGETHER WITH TEE POSTS BANK A PANEL AN ARRESTEE 30 YEAR-OLD HAVE GATE THAT SOMETIMES WORKS. TO PROPERLY TREAT SECOND MILES IN CERTAIN MODE LIVESTOCK SAFELY AND EFFICIENTLY I WOULD LIKE TO BUILD A LOW STRESS LIVESTOCK HANDLING SYSTEM. THE MTA’S AGRILIFE SECOND INVESTMENT GRANT SOUNDS LIKE THE PERFECT FIT FOR MY PROJECT; BUT AS THE GRANT WOULD ONLY COVER 10% MIKE THAT MY PROJECT COST I WOULD BE SPENDING A LOT OF TIME IN AN APPLICATION FOR A FEW $100 AND IT STILL BE LEFT TO FIND SEVERAL $1000 FOR THE PROJECT. IT’S EASY TO SEE HOW THESE GRANTS MEANT PRIMARILY GO TO LARGE ESTABLISHED FARM BUSINESSES ACCESS TO THE CAPITAL TO BUILD ENORMOUS FACILITIES AND THIS IS IT AN EXAMPLE AND HOW PROGRAMS ARE OFTEN IN THE CONVENTIONAL FARMS AND REWARD THOSE WITH GENERATIONAL WEALTH AND INFRASTRUCTURE. BEFORE I CLOSE I JUST WANT TO EMPHASIZE. THAT I AM WHITE COLLEGE EDUCATED FROM A FARMING BACKGROUND AND HAVE THE ABILITY TO NAVIGATE INSTITUTIONAL RESOURCES AND ACCESS FAMILY SUPPORT. BUT HAS BEEN DIFFICULT FOR ME IS MONUMENTALLY MORE SO FOR BLACK INDIGENOUS; BUT HE NEXT IMMIGRANT DISABLED AND LGBTQ FARMERS. MY GENERATION NEEDS ALL HANDS ON DECK TO FIX A BROKEN FARM ECONOMY AND FOOD SYSTEM WHILE SIMULTANEOUSLY ADAPTING TO IN FIGHTING CLIMATE CHANGE. I URGE YOU TO DO THE UNCOMFORTABLE WORK TO ADDRESS INSTITUTIONAL RACISM IMPLICIT BIAS EQUITY AS OUTLINED IN THE REPORT. THANK YOU AGAIN FOR THE OPPORTUNITY TO TESTIFY TODAY AND THANK YOU TO COMMISSIONER BAILEY AERIAL TAKEN AND THE REST OF THE MEMBERS OF THE DEPARTMENT OF AG THE CULTURE FOR HOLDING THE MARGIN. I MEAN LISTENING SESSIONS AND LISTENING TO A STRICT WE THANK YOU MISS BERNARD.>>NATURE THANK YOU CHAIR POPPY IN THE COMMITTEE MY NAME IS RACHEL SANTA AND I FIND FLOWERS AND BLACK A MINNESOTA FARM ABOUT AN INCH OF FLOWERS ON HER 40 ACRE HOMESTEAD. WE’VE SPENT A LOT OF TIME REBUILDING THE HOMES 10 IS NO ONE HAS LIVED THERE SINCE THE 50’S. AS A BEGINNING FARMER; THIS IS A PRETTY FAMILIAR EXPERIENCE. WE DON’T HAVE ASSETS WE’RE NOT COMING FROM FARMING FAMILIES AND THIS CREATES CHALLENGES FOR US. I’M THE PRESIDENT OF THE CENTRAL MINNESOTA YOUNG FARMERS COALITION; I’M ALSO MINNESOTA FARMERS UNION LACS COUNTY PRESIDENT. I ATTENDED THE EMERGING FARMER LISTENING SESSION IN ST. CLOUD PUT ON BY ASSISTANT COMMISSIONER BAILEY IN THAT APARTMENT OF AN. THESE CONVERSATIONS ARE ESSENTIAL TO MEETING NEEDS OF THE NEXT GENERATION OF FARMERS TO KEEP OUR RURAL COMMUNITY STRONG. I KNOW WE DON’T HAVE A LOT OF TIME TODAY SO BE QUICK I’D LIKE TO QUICKLY HIGHLIGHT TO RECOMMENDATIONS FROM THE REPORT. THE INCREASE IN THE OVERALL FINANCES SO FOR ALL FINANCE. AUTHORITY THANK YOU AUTHORITY MICROLOAN PROGRAM FROM $10;000 TO $20;000 LOAN LIMIT. AGENCY MICROLOAN FOR MY FIRST CHAPTER. AND THAT’S A VERY SIMILAR PROGRAM TO WHAT THE REAL FINANCE AUTHORITY OFFERS BEGINNING FARMERS NEED THESE PROGRAMS IN ORDER TO MAKE NECESSARY INVESTMENTS IN THEIR FARMS INVESTMENTS IN THEIR FARMS OR INVESTMENTS IN OUR COMMUNITIES. EACH LOAN FOR A TRACTOR A HOOP HOUSE FENCE SAYING IMPROVES FIND PROFITABLE FUNNY. FARM PROFITABILITY MEANS MORE SUCCESSFUL FARMS. MORE SUCCESSFUL FARMS MEANS MORE FAMILIES IN OUR COMMUNITIES. I’D LIKE TO SPEAK TO THE EMERGING FROM A TASK FORCE THAT WAS READ THAT WOULD MEET WITH THE COMMISSIONER. THE LISTENING SESSION STARTED MANY IMPORTANT CONVERSATIONS AND WE SHOULDN’T STOP NOW THESE CONVERSATIONS ARE ABOUT THE FUTURE OF FARMING IN MINNESOTA AND THE UNIQUE OPPORTUNITIES AND BARRIERS THAT THE NEXT GENERATION OF FARMERS LIKE MYSELF FACE THIS TASK FORCE WILL CREATE SPACE FOR THESE CRITICAL CONVERSATION TO CONTINUE. AND I’D LIKE TO SEE THAT HAPPEN. THANK YOU FOR YOUR TIME; THANK YOU MISS ENTERED AND NEXT WE BUT ANOTHER HAS SLIPPED MERRICK WENT. I THINK THAT THE COMMUNITY TO FOR THIS OPPORTUNITY.>>FIRST OF FROM GUATEMALA; I’M A FIRST GENERATION IMMIGRANT I LIVE IN NORTHFIELD MINNESOTA. AND I SPEAK FOR THE CHICKENS. I AM I THINK THE FOCUS THAN CHICKENS I DID STUDY ALL OF THESE CHALLENGES I DID SAID OF THE CONVENTIONAL SYSTEM I DID GET THAT DEGREE IN AGRICULTURE IN GUATEMALA; A NICE GUY STARTED BUSINESS MANAGEMENT AT THE COLLEGE. SO I HAD A LOT OF THAT SAME PREPARATION EVEN THOUGH. MINORITY I’M A LATINA AND I’M FROM A FOREIGN COUNTRY. I DID LOVE AND THAT EVERYTHING BEFORE VENTURING INTO A CULT AND I’M TELLING YOU. IT IS A VERY DIFFICULT THING I THINK WE WE THINK OF EMERGING BUT REALLY WE’RE JUST COUNTING RIGHT NOW. WE’RE NOT GOING TO MERGE HE HAD BEEN TO BUTTERFLIES AND THIS IS A VERY UPHILL CHALLENGE FIRST OF THEY JUST HAVE DISCRIMINATION I HAD A 70 ACRE FARM IN BELLE PLAINE MINNESOTA WHICH I LOST TOO PAYTON IN MAKE IT YOU FROM THE NEIGHBORS. I LOST ALL MY EQUITY THAT I HAD BUILT OVER 10 YEARS THE MINNEAPOLIS WHEN I LIVED HERE OF TO LISTEN THAT EQUITY I MOVED TO NORTH GERMAN IS SO I WHERE I ENCOUNTER A VERY WELCOMING COMMUNITY HE AND THAT REALLY NURTURING A BUSINESS THAT WORK AND HE GAVE ME HOPE AGAIN THAT I COULD RESTART MY AMBITIONS OF BECOMING A FARMER. SO I ENDED AT PLAYING A 1.9 ACRE LOOP LOT NORTH OF TOWN. AND I LOVE THE PROTOTYPE ONE OF THE SYSTEMS THAT WE HAD DEVELOPED ACROSS TO LATIN AMERICA AND ESPECIALLY IN GUATEMALA JUST TO GIVE YOU AN IDEA THE INVESTOR PURCHASES IN GUATEMALA OWNS 25 MILLION LAYERS; NOT COUNTING BROTHERS IN TURKEY. THOSE COMPARED TO THE 36 ME AN EGG LAYERS IN THE BACKYARDS OF FAMILY FARMS ACROSS THE COUNTRY PLUS SUPPORTED BY THE RULE ECONOMIES IN BY LOCAL MARKET INFRASTRUCTURE AND ESPECIALLY THE DISCONNECTION FROM CORPORATE. AND FINANCIAL INFRASTRUCTURE KNOW THAT I KNEW THAT IN ORDER TO THRIVE IN THIS SMALL SPACE IN THE NEWS NOW CHALLENGES THAT WE’RE FACING I WOULD HAVE TO INNOVATE. AND SO I’M I’M I’M A PATIENT SPECIFICALLY CAME IN THE FORM OF REDESIGNING HOW WE DO POULTRY. WELL NOW LEADING ON NATIONALLY AND INTERNATIONALLY IN THIS NEAR THE SIGN WE ARE FOCUSED ON THE PLAYING THE FIRST LARGE SCALE PARISIAN IN SOUTHEASTERN MINNESOTA 20 COUNTIES. WE HAVE BUILT ON A LARGE THAT SENT SUPPORT SYSTEM IN INFRASTRUCTURE FOR THAT I BUILT WHAT IS CALLED THE REGENERATIVE AGRICULTURE ALLIANCE WE CAN COORDINATE THAT ECOSYSTEM TO SUPPORT THE FARMERS WHO WANT TO JOIN THE SYSTEM WE’RE BUILDING MARKETS; BRANDON AND AT THIS POINT WE’RE LEADING THE DISCUSSION ON DEVELOPING ON LIKE TO INVEST TO REGENERATIVE BRAND APART IN SOUTHEASTERN MINNESOTA. WE’LL JUST SUPPORT FOR THAT THIS HAD THE KIND OF INITIATIVES THAT AS IMMIGRANTS AND ALL THOSE OF US. YOU KNOW FROM THE PICTURES THAT YOU HAVE IN THAT EQUITY VERSUS SAID JUSTICE IN YOUR IN YOUR TIP IN ALL WE WANT IS A CLEAR OFFENSE WE CAN GET SEATS IT THROUGH AND YOU KNOW AND THEN WE’RE LIKE SOME GATES SO WE CAN ACTUALLY WALK THROUGH THAT FENCE AS WELL BECAUSE THE FENCE IS STILL UP AND SAYS YOU KNOW STILL A BARRIER. AND I CAN SEE THE OTHER SIDE WE CAN SAY COULD EVER HOPE WE CAN THRIVE THOSE 1000 FARMERS IN SOUTHWESTERN MINNESOTA; THE 961 NUMBER OR THE 600 PAST NUMBER IN THE REPORT THAT’S A SHAME BECAUSE THE WORLD. THE 7% OF US COMING FROM HIM ON THAT AMERICAN COUNTRIES THAT GREW IN AGRICULTURE. I MET WITH OVER 1100 FAMILIES BUT BEEN PUT ON A BOSTON PRO BOWL KNOW FEEL AND RED WING AND WE FOUND OUT THAT ABOUT 70% OF US WERE LIKE THE FARM; BUT WE DON’T FIX IN WOULDN’T FIT IN THE BOX AND WE’RE NOT INTERESTED IN PUTTING IN DOUBT BOX WE WANT TO FIRE ME NO WAY THAT TAKES CARE OF THE LAND OUR FARMERS; FOR OUR CHILDREN’S HEALTH AND THE WELL THE RESOURCES IN OUR REGION’S THE DIVERSITY OF BEING MASS POGO’S THE LITTLE BIT THAT KYRA THEM WE WANT TO FARM ENERGY ENERGY TRANSFORMATION IS REALLY OUR APPROACH NOT I IT’S IN TERMS OF BUSHELS PER ACRE WE DON’T FIT IN THE BOX. SO WE WERE REQUEST THAT AND THEN WE GET TO 2 THAT THE PARTNER 5 CULTURE BECAUSE THIS IS THE FIRST TIME WE HAVEN’T ACTUALLY AND INCLUDED IN THIS BUSES IS THOSE LISTENING SESSIONS; BUT IT’S A BAD THING TO HAVE HAPPENED BECAUSE IN THE PAST THIS SYSTEM AND THAT I WAS PIONEERING AND MANY YEARS AGO CAN WE STILL AND READY FOR THE BETTERMENT I I DID A BIT OF A COMMISSION IN THIS VERY ROOM FOR THOSE HELP US. I WILL LET THIS PASS THE MOVE IS LIKE A NUISANCE INTO ACTUAL STRUCTURAL CHANGES THAT CAN ALLOW US TO DEVELOP IS NO COMPARATIVE ADVANTAGE NOT ONLY FOR IN MINNESOTA FOR AGRICULTURE IN MINNESOTA. SO THANK YOU VERY MUCH FOOD TIME.>>THANK YOU THANK YOU VERY MUCH; BUT POWERFUL TESTIMONY FROM ALL 3 OF YOU SO VERY MUCH APPRECIATE IT. BUT THAT YOU WERE ABLE TO CAN COME AND AGAIN I APOLOGIZE TO THE COMMITTEE FOR GOING OVER. I THINK WILL JUST ADD CLOSED THE MEETING AND IF PEOPLE WANTED AT TALK TO. OUR PRESENTERS HERE THEY WILL BE FREE TO DO THAT. ANY CONCLUDING COMMENTS BY ANYONE OTHER THAN THAT OKAY WELL WE’LL SEE YOU THEN NEXT TUESDAY AND COMMITTEE AND THANK YOU VERY MUCH AND THE MONEY IS ADJOURNED.

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