APB agenda 081804 - Laserfiche WebLink

Browse Search

Center for Rural Affairs, www.cfra.org Most small communities are sitting on a potential environmental asset — uncrowded natural space. For exam- ple, communities that work with landowners and federal conservation programs to restore land along streams to a natural state and provide public access would have an asset that would make them more attractive places to live. And though most farm communities will never become tourist economies, providing access to natural space could provide the basis for new small businesses such as bed and breakfasts. The new farm bill gives the Secretary of Agriculture authority to work with communities in adjusting conser- vation programs to fit local needs through the Conservation Partnerships and Cooperation Program. That authority should be used to work with communities that want to use a quality environment as a development asset. The secretary should also use the authority granted by the farm bill to adjust conservation programs to help beginning farmers. It allows the secretary to be creative. For example, beginning farmers could be provided a 10 -year stream of conservation payments up front to finance their start in farming, in return for a legally binding 10 -year commitment to practice conservation. The New Homestead Opportunity Act Historically, Congress has addressed the problems of high unemployment and high poverty communities by establishing "Enterprise Zones" and providing tax incentives for investors and large business to create jobs. Agricultural communities have not been effectively served by that approach. They don't qualify because of their low unemployment levels. The incentives for corporate job relocation and outside investment do not fit what works for them. Job recruitment strategies haven't worked. Their greatest opportunities are in local entrepreneurship. The "New Homestead Economic Opportunity Act" introduced by Senators Byron Dorgan of North Dakota and Chuck Hagel of Nebraska addresses those limitations. It focuses assistance on counties suffering popula- tion loss. The Act supports entrepreneurship and local ownership by establishing government- matched savings ac- counts called "Individual Homestead Accounts." Funds could be withdrawn to start a small business, pay for educational expenses, make first -time home purchases, and pay medical expenses. This legislation could be strengthened. A 30 percent investment credit up to $2,500 annually could be pro- vided for investments in non -farm micro enterprises and investments by beginning farmers in operating capi- tal, inventory, etc. Land and business owners could be encouraged to sell to beginners by offering them fed- eral guarantees on contract sales to beginners and by exempting the interest income from taxation. Page 3