FOR IMMEDIATE RELEASE
Contact: Rhonda Porter: 402-391-2273, Dave Nabity: 402-618-6759

Nabity Reveals Agri-Business Expansion Plan

((April 6, 2006—Lincoln, NE) Dave Nabity, Republican candidate for governor, presented a plan today for expanding agriculture and improving Nebraska’s economy. The plan heavily emphasizes both strengthening the state’s traditional agricultural operations and recruiting new 21st Century industries that provide new markets for Nebraska commodities.

“Brazil, Argentina, Eastern Europe and China are going to provide tough competition for Nebraska in the next eight to 10 years,” Nabity said. “We had better be ready for it.”

Nabity’s plan, called the “Agri-Business Expansion Plan,” proposes new water policies, economic measurement tools, retaining local control, economic incentives, and consolidating and streamlining agencies that create excessive regulatory burdens on Nebraska producers.

Text accompanying his presentation at today’s press conference can be found below. For more information, contact the Nabity for Governor campaign office at 402-391-2273. Mr. Nabity is taking media calls personally at 402-618-6759.

“I appreciate that the Governor is joining me in wanting to bring tax relief. However, with the exception of eliminating the “labor tax”, which is an idea I called for two years ago, his plan is primarily ceremonial.

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The Nabity Agri-Business Expansion Plan
Presented to the Press on April 6, 2006

Nebraska is an agribusiness state--agriculture is our number one industry and has been the foundation of our economy for more than a century. However, it is the 21st Century, and we need to prepare for the future. Agricultural competition--not only within the United States, but throughout the world--could spell economic doom for Nebraska if we do not figure out the best ways to get ahead of our competitors.

Brazil, Argentina, Eastern Europe and China are going to provide tough competition for Nebraska in the next eight to 10 years. We had better be ready for it, if we want to survive and thrive in the 21st Century. I believe Nebraska has not kept up with modern strategies that could position us for maximum growth. I also believe, in some ways, we have taken our eye off of what is important to keeping our rural economy healthy. The red tape and cumbersome procedures of state government have grown beyond their usefulness and are seriously in need of reform.

Today, I'm rolling out a new Agri-Business Expansion Plan for Nebraska, to show voters strategies that must be put in place, in my opinion, so Nebraska emerges as a competitive agricultural powerhouse--not only in the Midwest, but globally.

Let me first talk about strategies that focus on government reform. Without reforming the way government manages things in Nebraska, we will forever be kept from reaching our maximum growth potential.

It all starts with water policy. A failed water policy will doom our state economically. We must make sure we are protecting Nebraska's economic interests. That is why I stand firm in my support of our Natural Resources Districts. I believe it is critical that the NRDs keep local control of ground water in their districts and that the Department of Natural Resources’ responsibility is limited to surface water.

We need to develop a new strategy to contain more rainfall and speed the recharge of our aquifers. We need to develop a water transfer infrastructure and move water from areas of surplus to areas of need. If we put our time, energy and money into this approach, Nebraska will emerge as one of the most self-sufficient agricultural powers in the world. Short-term fixes, such as encouraging landowners to stop farming or to cut down on water usage, will only set us up to fail financially down the road.

We also need to make sure Nebraskans have complete control of the Platte River and not turn management of the river over to the Federal Government. We must not forfeit our right to gain economic advantages from the river. Finally, we must not use extreme measures to prevent the use of groundwater. Nebraska’s irrigators provide crops to support all of the new industries in agriculture, as well as provide food for the world. Overzealous restriction of irrigation could destroy our entire rural economy.

We need to make bureaucratic reforms in Nebraska to get unnecessary government burdens off the backs of our producers. I would like to find a way to merge the Department of Natural Resources and the Department of Environmental Quality to improve the functions of both departments, streamline procedures and regulations and give our producers one agency to deal with. We will reduce redundancy and begin modernizing to eliminate the barriers to economic growth that exist today. I want these departments to be a model of efficiency, to show the rest of the nation the way government can become a dedicated partner to those who want to grow the state’s economy.

This newly-combined agency will review procedures in the livestock industry to make sure needless time delays and over-regulation are not occurring. The permitting process for all ag-related industries must improve to the point that no other state processes and permits faster than Nebraska. We must do these things to open up Nebraska for new jobs and economic growth in rural areas of the state.

The next area I will focus on is development of new economic intelligence to help all of us make better financial decisions when managing economic activity in our counties. Other states have "Livestock Matrix" systems that help determine whether an area is well-suited for additional livestock expansion. Madison County has developed such a system and it is an excellent beginning. This helps remove emotions from the equation and brings economic common sense to the discussion.

I am going to propose the development of a Statewide Livestock Matrix System that will help counties all across Nebraska assess their growth potential in livestock feeding areas. We need to seriously examine this potential, because it is a fact that the more livestock existing in a county, the greater the wealth of that county. If we want more money for schools and higher incomes for our residents, we need this type of intelligence. Growing livestock does have its limits, though, and a Statewide Livestock Matrix System will help counties make informed decisions about livestock growth.

I want to develop a similar matrix system for bio-fuels. This will help counties do a better job of understanding the vertical integration of farms in irrigation and livestock feeding to determine whether a bio-fuels facility would be successful in each county.

In addition to these matrix systems, my administration will develop a County Growth Capacity System that will help county leaders understand exactly how much capacity for growth the county has, then follow that analysis with a new County Economic Growth Model that calculates the economic benefit of a county getting to full capacity. This is important, because many counties are losing population, the average incomes per capita are shrinking, and the future of many of counties is uncertain. I'm convinced that if residents in those counties, and government leaders, clearly understand the county’s economic potential and the potential tax savings new growth could offer residents, they will make better decisions about how to grow their counties. The entire state will benefit from this new economic intelligence. The better all counties do, the better the whole state does.

To provide motivation for expanding and creating more economic activity in our rural areas, I propose a series of state incentives to promote more growth.

The first incentive is in the area of Value Added Agriculture. I want to make sure there is no state in America with an economic advantage over Nebraska, when it comes to luring businesses to purchase our commodities and convert them into export products. Businesses, such as manufacturing, alternative fuels and bio-technologies, that use corn, soybeans and other Nebraska crops, need to be at the top of the list. To make the economic models work for these types of industries, there usually is a requirement for livestock operations in the area. So, I am proposing a series of incentive grants for Nebraskans who can create environment-friendly facilities that really do limit odor. I will work to make Tax Increment Financing available for agriculture-based enterprises. All of Nebraska will win, if we can make sure crops grown here are consumed here, then converted into export products. This also will help keep prices higher for local farmers when they are forced to compete with cheap Brazilian commodities in the future.

If we are going to promote the growth of these new industries, I want to make sure these enterprises have some local ownership. A locally-owned, Vertically Integrated Agricultural Marketing System for water, corn, ethanol, livestock, packing and distribution is the best way to protect economic interests of the state.

Many Nebraska farmers are at the stage of life where they really would like to retire, but land prices make it very difficult to find young successors. I'd like to see the state develop a Loan Guarantee Plan that backs the young farmer with low-interest financing. This will give new farmers the opportunity to purchase land, keeping it in the hands of smaller operators.

One of the biggest concerns of farmers who have been in business for years is the cost of upgrading their facilities to meet the demands of the EPA and our own DEQ. Because of this, I'm going to look for a way to provide tax credits to offset the costs of complying with state and federal regulations. We need to push congressmen and senators to expand federal legislation, so it does the same.

The development of alternative farming strategies is also very important to the future of the state. I will propose tax incentives for those who convert their farms to fill new "niches" that diversify the economic base of the state. This will help protect us from the international competition that is coming.

Expanding tourism and recreation on farmed land is a great way to diversify economies in rural Nebraska. As I have mentioned in previous press conferences, I am going to incorporate the Nabity Plan for Transforming Tourism into this Agri-Business Expansion Plan to make sure landowners can pursue as much economic opportunity as possible. The more businesses we can operate out of the same farm, the better it is for everyone.

Over the past decade, many of our counties have found themselves in needless court battles, fighting attempts to prevent the growth of new enterprises in their areas. For this reason, I am going to propose that the State of Nebraska create a "Legal Defense Fund" for any county to use when it is faced with expensive lawsuits attempting to stop economic expansion in the area. If counties are prevented from growing economically, it’s not good for any of us. Hopefully, with the new matrix systems and the capacity and economic modeling systems in place, fewer of these lawsuits will occur.

Finally, the Federal Government needs to be pushed into changing some of the ways it handles agriculture. For example, Nebraskans who want to diversify farming operations are not allowed to participate in Federal Crop Insurance. The new niche operations are not included in accepted lists for herbicide use, so they are not allowed without violating the economic safety net provided by the direct payment system.

The Federal Government must be urged to change its stance on these issues, because it is in the long-term best interests of the nation to allow our farms to move away from commodities and explore new niches that will diversify our national economy.

In addition to this change at the Federal level, we as Nebraskans need to do all we can to make sure we retain local control of our water resources. We must not allow the Federal Government to take control of our rivers or other water resources.

These are the strategies I will champion as the next governor of the State of Nebraska. Nebraska is an ag state, and we always will be an ag state. However, we must modernize and streamline the way we do business. We can become the envy of the nation and the world for our effective use of resources, for getting the most out of our land, and for the strategies we implement to create 21st Century jobs and economic activity.

We can do it, folks. Let's put a leader in place who not only understands what needs to be done to bolster agriculture and the economy of our state, but who has the courage to lead the charge, make these reforms, and transform Nebraska into the "Jewel of the Midwest."

Nabity is available for interview upon request at the number above.

Dave Nabity for Governor
9140 West Dodge, Suite 100
Omaha, NE 68114
(402) 391-2273
www.davenabity.com