Agriculture

Livestock development grants advanced

A measure that would encourage livestock development in Nebraska advanced from general file May 4.

Introduced by Ogallala Sen. Ken Schilz, LB175 would authorize the state Department of Agriculture to award grants to counties designated as livestock friendly. Grants could be awarded for strategic planning and improvements to public infrastructure.

Grants for strategic planning projects would be limited to $15,000 each. Grants for infrastructure projects would be limited to one half of the unobligated balance of the fund or $200,000, whichever is less. The bill also would raise from $30,000 to $150,000 the tax credit cap allowed through the state’s rural development program for applications filed after Jan. 1, 2016.

Schilz said the bill provides county officials with a framework to carefully control livestock development. He said the bill targets counties in Nebraska that are identified as livestock friendly because those areas already have completed state-required certification demonstrating a commitment to the livestock industry.

“Each county should be able to capitalize on its strengths,” Schilz said. “LB175 is the thoughtful approach to moving forward with livestock development in the state.”

An Agriculture Committee amendment, adopted 32-0, removed the Commercial Feed Administration Cash Fund as a revenue source for the grants and clarified definitions of livestock and livestock production to include dairy animals and commercial production of dairy products and eggs.

Wahoo Sen. Jerry Johnson, chairperson of the committee, said making dairy projects eligible for grants could encourage dairy farms to expand, which could prompt more dairy processors to move to the state.

Hyannis Sen. Al Davis introduced an amendment to remove the requirement that only livestock friendly counties could be eligible for grants and expand eligible development projects to include value-added agriculture, local and regional food systems and certified organic food systems.

Davis said an agriculture development program should benefit the entire state, not just the 29 counties deemed livestock friendly.

Sen. Kate Sullivan of Cedar Rapids agreed, saying the bill appeared to focus on developing larger livestock operations and more consideration should be given to niche agriculture markets.

“Let’s have some larger diversity,” Sullivan said. “What about the 58 other counties that are also concerned about rural development?”

Johnson opposed the amendment, saying the benefits of the grant program would make the livestock friendly certification more valuable and would encourage more counties to seek the designation.

Senators rejected the Davis amendment on a 7-14 vote. Davis then offered an amendment that included only the provision to expand program benefits for value-added agriculture, local and regional food systems and certified organic food systems. It failed on a 21-10 vote.

Senators then advanced LB175 to select file on a 37-0 vote.

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