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Rural economic development among top benefactors of recent legislative session |
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By MONETTE TAYLOR | South Central Texas Edition |
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June 13, 2002 -- While there was major legislation passed during the recent 77th Legislature, there's not a lot of interim studies pertaining to agriculture being discussed before the 78th Legislature convenes in January of 2003. At a recent meeting of the Texas Municipal League (TML) to address the latest legislative session, city officials and others were updated on issues that are still being studied, as well as some of the legislation passed. According to Bennett Sandlin, assistant general counsel for the TML, one of the major issues had to do with economic development. The 77th Legislature improved the financial program offered by the Texas Agricultural Finance Authority (TAFA) by assisting businesses and communities "access capital." Before, these dollars were reserved strictly for rural areas and agricultural use, but new changes in the program give rural areas of Texas more possibilities for use of the money. "It was a nice program, but had it's limitations (before)," said Sandlin. According to the Texas Department of Agriculture (TDA), the changes related to Senate Bill (SB)716, the TAFA program changes will provide an additional $5 million in low-interest loans for non-agricultural, rural businesses through the Linked Deposit Program. Before, the program provided $25 million in loans to ag-related businesses. This change will increase the total funding for the program to $30 million. Another program affected by changes is the Rural Development Finance Program. It now allows the program "to issue tax-exempt, private activity bonds at competitive interest rates to agricultural-manufacturing businesses as well as non-agricultural businesses." It is estimated that as much as $15 million in loans could be financed by these bonds. One loan area of major concern is the Farm and Ranchland Loan Guarantees. Most banks have required at least 15 percent down payment on land, and would lend up to 85 percent if the loan was guaranteed through a governmental agency such as TAFA. New legislation has authorized TAFA to provide guaranteed loans up to 95 percent, with only a 5 percent down payment. The TDA identified the following areas of legislation that passed during the last session: The GO TEXAN Partner Program (GOTEPP), with a new budget of $2 million, "will educate Texans about the benefits of buying agricultural products grown or processing in-state, while boosting agricultural sales and income through the GOTEPP private-public matching grants program;" and recognized that Texas' 48 wineries will now be allowed to ship Texas wines to Texas consumers, ship purchases bought by out-of-state consumers, and fill orders by phone and Internet that will be "shipped to the nearest package store participating in the wine program." As most producers are aware, water issues were at the forefront of many bills considered in the last legislative session. The State Water Planning Part II moved agricultural uses from third place to second place, behind domestic and municipal uses, and the "definition of 'agriculture' and 'agricultural uses' is expanded for surface water and groundwater law." The $5 million Weather Modification Grant Program was transferred from the Texas Natural Resource Conservation Commission to TDA, and will assist local water districts and other political subdivisions with cloud-seeding operations, based on matching grants. Other changes include the establishment of an Agriculture Policy Board which will recommend strategies for "enhancing agricultural production, income and employment." Texas agriculture is the second largest industry in the state and contributes $80 billion a year to the Texas economy, says the TDA. Also, the 77th Legislature appropriated $50 million for boll weevil eradication, and cost-sharing programs with cotton farmers who have established boll weevil eradication zones. According to information presented by Sandlin, the Texas House of Representatives interim studies include work being done by the Land and Resource Management Committee, which addresses "urban sprawl," and it's impacts on the infrastructure of rural towns and the loss of farm land and wildlife habitat. The Senate group will be studying natural resources, including water and evaluating the "state's ability to respond to natural disasters ...," along with working with the Intergovernmental Relations Committee on current state laws regarding fresh water supply districts, among other items. The Joint Committee on Water Resources will focus on the most efficient use of existing water resources and long term water strategies. "There were a lot of water bills ... lots and lots (at the last session)," said Beverly Boyd, deputy assistant commissioner for communications at TDA. "I'm sure our Intergovernment Affairs folks and different divisions are working on things coming up (for the 78th Legislature), but they don't share that with us," she laughed. |
