The 4th meeting of the Interim Joint Committee on Agriculture and Natural Resources was held on Tuesday and Wednesday, October 9-10, 2007. The first day began at 1:00 PM in Owensboro at Owensboro Grain. Representative Tom McKee, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representatives Jim Gooch Jr, Co-Chair, and Tom McKee, Co-Chair; Senators David E. Boswell, Ernie Harris, Bob Leeper, Joey Pendleton, and Dorsey Ridley; Representatives Royce W. Adams, John A. Arnold Jr, Dwight D. Butler, James R. Comer Jr, C. B. Embry Jr, Richard Henderson, Brad Montell, Fred Nesler, Don Pasley, Tom Riner, Steven Rudy, Dottie Sims, Jim Stewart III, Tommy Turner, Ken Upchurch, and Susan Westrom.
Guests: Mr. John Wright, Vice President, Owensboro Grain; Ms. Laura Knoth, Mr. Jeff Harper, and David Davis, Kentucky Farm Bureau; Ms. Christina Gordley, Office State Budget Director; Mr. Tim Hughes, Governor's Office of Agricultural Policy; Ms. Rebecca Watts, Deputy to the President, Murray State University; Mr. Bob Jackson, Associate Vice President for Development and Governmental Relations, Murray State University; Dr. Wade Northington, Director, Breathitt Veterinary Center; Mr. Mick Henderson, General Manager Commonwealth Agri-Energy. LLC; Dr. Tony Brannon, Dean, Murray State University School of Agriculture, and Chair, Task Force on the Future of Agriculture; Ms. Carolyn Sorrell, Owner, Fox Creek Cattle Company.
LRC Staff: Tanya Monsanto, Committee Staff Administrator; Biff Baker, Lowell Atchley, Hank Marks, and Lindsey Murphy, Committee Assistant.
The meeting began with Senator Boswell welcoming the members to Owensboro. Senator Boswell then introduced the presenter for the afternoon, Mr. John Wright, Vice-President of Owensboro Grain.
Mr. Wright gave a brief history of the 101-year-old soybean processing facility and informed the members that he was a fourth generation owner of the family business. Mr. Wright discussed the method by which soybeans are crushed and processed into oil and noted that every part of the bean is used to manufacture a marketable byproduct.
Next Mr. Wright discussed the biodiesel facility that was under construction, including the capacity of the plant, the financing of the plant, the potential markets for the biodiesel, and quality control.
Upon questioning, Mr. Wright noted that Owensboro Grain employs approximately 150 people. He said that the oil manufactured by Owensboro Grain is bought primarily by two companies. Mr. Wright also emphasized that the biodiesel his company will produce will exceed federal standards. He stated that most biodiesel being produced in the U.S. does not meet minimum standards, and that is unacceptable. Mr. Wright also responded to questions regarding contracting with farmers, experimenting with different varieties of soybeans, improving infrastructure, and his thoughts about the future of the industry.
Following the meeting, the members traveled to the biodiesel facility and were given a tour of the plant.
The chairman then recessed the meeting until 9:30 AM Wednesday at the Breathitt Veterinary Center in Hopkinsville.
Representative Tom McKee, Chair, reconvened the meeting at 9:30 AM in Hopkinsville at the Breathitt Veterinary Center and the secretary called the roll.
Doctor Wade Northington, Director of the Breathitt Veterinary Center, began by welcoming the members to the center and introducing his staff. Dr. Northington then gave a brief overview of the itinerary for the morning.
Ms. Becky Watts, Deputy to the President of Murray State University, welcomed the members to Hopkinsville.
Mr. Bob Jackson, Associate Vice President for Development and Governmental Relations at MSU, discussed the center's capital construction project and the center's missions.
Dr. Northington then discussed in detail the center's activities and talked more about the capital construction project. Upon questioning by the members, he explained the center's role in disease control and dead animal disposal.
Next, the center staff gave the members a tour of the facility.
Two presentations were given during lunch. First was Mr. Mick Henderson, General Manager of Commonwealth Agri-Energy, LLC, an ethanol facility in Hopkinsville. Mr. Henderson described the plant's relationship with the adjoining grain elevator and the process involved in producing ethanol. He also discussed the different uses for the byproducts of the corn used in ethanol.
Mr. Henderson talked about the history of the ethanol industry, the locations of refineries throughout the U.S., and the potential for the future of ethanol in general and of his plant in particular.
Upon questioning, Mr. Henderson discussed the issue of carbon dioxide disposal and the use of other cellulosic materials to make ethanol.
The next speaker was Dr. Tony Brannon, Dean of MSU School of Agriculture. Dr. Brannon is also the Chair of the Task Force on the Future of Agriculture. He explained that the task force was created to develop a strategic plan to guide the future growth and development of Kentucky agriculture. He updated the members on the actions of the task force and gave them a timeline on when the task force is expected to conclude its work. Part of the mission of the task force will be to make legislative recommendations to the General Assembly. He noted that three recommendations will be to continue giving agriculture 50% of the tobacco settlement funds, support the Breathitt Veterinary Center construction plan, and pay the bonding debt relating to rural water lines from the General Fund instead of from the Agricultural Development Fund.
The members then traveled to Fox Creek Cattle Company in Hopkinsville and heard from owner Carolyn Sorrell. Fox Creek is a family-owned stocker and feeder cattle business that fills orders for cattle buyers. Ms. Sorrell talked about the cattle market and about her facility. She discussed the intense competition that small businesses face when competing with large corporate companies and talked about other issues that the industry encounters. Ms. Sorrell shared some suggestions with the members that she felt could help the livestock industry, including eliminating the state sales tax on animal pharmaceuticals, opening Conservation Reserve Program land for grazing, keeping horse slaughtering facilities open, and providing financial assistance to livestock owners to purchase hay, feed, and seed due to the drought.
There being no further business, the meeting was adjourned.