The 4th meeting of the Interim Joint Committee on Agriculture and Natural Resources was held on Friday, September 9, 2005, at 10:30 AM, in Gorham Hall of the E.S. Good Barn at the University of Kentucky. Representative Thomas M McKee, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Tom Jensen, Co-Chair; Representatives Jim Gooch Jr, Co-Chair, and Thomas M McKee, Co-Chair; Senators Ernie Harris, Robert J (Bob) Leeper, Vernie McGaha, Joey Pendleton, J Dorsey Ridley, Richie Sanders Jr, and Damon Thayer; Representatives Royce W Adams, Adrian K Arnold, Dwight D Butler, Hubert Collins, James R Comer Jr, Tim Couch, W Milward Dedman Jr, Mike Denham, C B Embry Jr, Jimmy Higdon, Charlie Hoffman, Charles E Meade, Brad Montell, Fred Nesler, Don R Pasley, Rick W Rand, Steven Rudy, Brandon D Smith, Jim Stewart III, and Tommy Turner.
Legislative Guest: Representative Rocky Adkins.
Guests: President Lee Todd, Dean Scott Smith, Nancy Cox, Larry Turner, and Drew Graham, University of Kentucky; Jeff Hall, Farm Service Agency; Laura Knoth, Brian Alvey, Jeff Harper, Kentucky Farm Bureau; Eric Gregory and Barry Mayfield, East Kentucky Power Cooperative.
LRC Staff: Tanya Monsanto, Biff Baker, Lowell Atchley, Hank Marks, Carl Frazier, Marlene Rutherford, Katie Carney, and Kelly Blevins.
Rep. McKee introduced President Lee Todd and Dean Scott Smith. President Todd thanked the members of the committee for support of the General Assembly particularly an $8.5 million dollar appropriation for a diagnostic facility and salary support for U.K. agricultural extension agents. President Todd then discussed the "bucks for brains" program and its role in promoting agricultural research. He also discussed the relationship between agriculture and other programs like pharmacy and biomedical research.
Rep. McKee thanked President Todd for the introduction and stated that agricultural research is important to the farmer. Dean Scott remarked that the University of Kentucky's Department of Agriculture has a strong partner in Kentucky Farm Bureau. Then, Dean Scott introduced Nancy Cox and Larry Turner.
Nancy Cox discussed enrollment and planning at the School of Agriculture stating that the number and variety of careers in agriculture has grown. Ms. Cox also described the tobacco research center, the promotion of plant made pharmaceuticals, and a new epidemiology center which monitors animal health. Lastly, Ms. Cox discussed the equine initiative which aims to develop several programs to support the equine industry in Kentucky. Mr. Turner discussed the importance of the county extension program at the University of Kentucky and other programs which support farmers such as the Tobacco Buyout education program.
Rep. McKee asked about student enrollment in the agriculture program. He asked when enrollment fell to 750. Dean Smith stated that it fell to 750 in the late 1980s. Currently enrollment stands at 1,846 students.
Rep. McKee asked if the agriculture program has students going into "production agriculture." We do not see many students wanting to be farmers. Rep. McKee added that Kentucky needs an agriculture economy that permits the farmer to realize a reasonable return from farming. Dean Smith replied that there are limited opportunities for students to become full-time farmers.
Rep. Denham asked what three factors are the most important for Kentucky agriculture to be competitive worldwide.
Dean Smith replied that research and development is the most important factor. Agriculture must continue to be cutting edge to compete with other agriculturally intensive countries. Mr. Turner added that Kentucky needs "niche" markets, diversification and extension to assist farmers and remain competitive. The question is how we add value to products. Nancy Cox added that there is potential in the Thoroughbred industry.
Rep. Denham asked whether the University of Kentucky's research discovered the cause of mare reproductive loss syndrome (MRLS). Nancy Cox replied yes. The consensus is that MRLS is caused by the caterpillars, but we do not understand exactly how the caterpillar creates the mechanism for MRLS.
Then Dean Smith identified the new staff at the University of Kentucky Department of Agriculture and Drew Graham remarked that there are several displays in the tests and outdoor tractor pull and a luncheon set up under the tents.
Rep. McKee thanked the University of Kentucky for hosting the Agricultural Roundup. Then Rep. McKee asked Sen. Thayer to present the subcommittee report for the Horse Farming Subcommittee. Sen. Thayer remarked on a marketing effort in foreign countries, the expansion of a hotel at the Kentucky Horse Park, and the bid to host the World Equestrian Games.
Then, Sen. Harris gave the report of the Natural Resources Subcommittee. He discussed various legislative proposals offered by the Department of Fish and Wildlife Resources. Then, Sen. McGaha gave the report of the Rural Issues Subcommittee. He stated various agencies presented their 2006 legislative agenda.
A motion and second were made and all three subcommittee reports were approved by voice vote.
Then, Jeff Hall with the Kentucky Farm Service Agency (FSA) discussed the closure of the FSA offices in Kentucky. Mr. Hall explained that Kentucky must reduce its offices by 46 persons. This is due to the loss of the tobacco program after the federal buyout legislation passed. Kentucky is not mandated to close offices at this time, but restructuring is a prudent decision at this time. He then discussed the three factors used to determine office closure: productivity improvements, workload reductions, and mileage between offices. He also stated that persons affected by the closure can request service through another office.
Rep. McKee thanked Mr. Hall for his presentation. Rep. Rudy asked if farmers in Fulton County could go to a Tennessee office. Mr. Hall stated yes.
Rep. Dedman asked how the staff reductions were being implemented. Mr. Hall explained that reductions are being achieved through voluntary retirements. Currently 46 persons have requested retirement or voluntary leave.
Rep. Pasley asked why there is a one-time only opportunity for a farmer to use another FSA office. Why can't the decision by made annually? Mr. Hall replied that the agency needs approximately two additional years before it will have all the farm and crop records to permit switching frequently. Right now, FSA is still tied to paper maps and reports.
Rep. Stewart asked about a closure in Knox county. We must now report to Whitley. He talked about the importance of a stockyard in the county. Then, he asked who exactly made the decision to close the office. Mr. Hall replied that when the national office closures were ordered, the closure criteria were developed. Then a state committee was formed that included directors of various offices. However, I make the final decision about choosing one headquarters over another.
Rep. Stewart asked if there was anyone on the committee from local offices. Mr. Hall replied yes. Employee associations participated. Rep. Stewart asked for the names of the people on the committee from employee associations.
Rep. McKee asked Mr. Hall to provide staff with the names of the employee association members on the committee.
Sen. Thayer then asked two questions. First, is Kentucky the only state facing closures and second, what are the specific criteria for closing an office? Mr. Hall stated Kentucky was the only state restructuring at this time and the reason is the number of tobacco farms in Kentucky. Kentucky was impacted more so than other states. Mr. Hall then described the changes in workload, crop reports and use of market cards. Regarding criteria for office closing, Mr. Hall referenced the three criteria identified in his earlier presentation. The closure decision for Scott County like other counties was based on workload, the changes in the crop reports, and the need to move the office to a central location.
Rep. Hoffman stated that many people in Scott County are upset about the office closure there. The reason is that on the first two lists made public, Scott wasn't identified for closure. Why is that? Mr. Hall stated that FSA did not officially release any lists on office closures, but some unofficial reports were disclosed because workers were filing for voluntary retirement. Mr. Hall stressed that the decision to close the Scott office was not to protect the jobs outside of Scott County.
Sen. Jensen remarked that he has received calls about the Knox office being moved to Whitley county. There are farmers in Knox that want to use the Laurel office. How will you publicize the right to select an office. Mr. Hall stated that each office will get a letter informing them of their right.
Sen. Jensen asked if the right can be put into bold type so that it will be apparent to the reader. Mr. Hall stated yes. It can be put into bold type.
Being that there were no further questions. Rep. McKee asked for a motion and a second to adjourn. It was approved by voice vote.