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Page 4 Agriculture Resources Nebraska leads nation, once again, in number 01 cattle marketed from feedlots-4.5 million head of fed cattle in 1982. More important than national leadership is growing share of beef market concentrating in Nebraska, A year ago, this state had 19.1 % of fed cattle marketed in 13 leading cattle states, This year it has 21%. Nebraska gained in cattle on feed at twice Iowa's rate. If last year's 11% increase in cattle marketed keeps up, the state will be sending more than 10 million head to slaughter by 1990; that would increase state's corn market by more than 200 million bushels a year, about a fourth of current total crop. Implications of this trend are spelled out in new economic development study compiled by Arthur D. Little Co. for Nebraska Department of Economic Development. It notes potential shift of corn production and cattle feeding from Southern High Plains to Nebraska, as water supplies decline and pump- ing costs rise in South compared with Nebraska's, Result: Nebraska has prime op- portunities to expand meat packing and other food processing activity, a theme regularly sounded by Gov, Kerrey. Study relates: "Some meat packing companies have indicated that if they had to re- consider their recent investments in Texas and Kansas at this time, they would more than likely be looking much more favorably at Nebraska locations. " Note of caution: private study con- ducted last year in connection with Initiative 300 campaign in Nebraska found that since 1970, Nebraska's share of national fed cattle produc- tion has increased by more than 21% while Iowa's shrunk by more than 35%. Good news for Nebraska, Bad news is that Iowa's decline in cattle marketing followed its 1975 legisla- tion barring corporate ownership of farms and feedlots, as Nebraska's 1982 passage of Initiative 300 now bars them here, Report notes: "The reason for the striking dif- ference between the adjoining states of Nebraska and Iowa stems from the relative lack of formation of large-scale feeding in 10wa....Cor- porations are more capable of at- tracting equity capital, supporting necessary large amounts of borrow- ings, and are better able to accept and manage risk," Report says Iowa's experience has hurt smalt feeders as well as cor- porations because new, large-scale meat packing has been discouraged from situating there. Its conclusion: "A decrease in both livestock production and processing will have tremendous negative ripple effect all throughout Nebraska's econ- omy Questions for Nebraskans: Is this an accurate account of Iowa's ex- perience? If so, are there ways it can be avoided with corporate ban in Nebraska? If not. should new con- stitutional amendment be modified to permit corporate feedlots as It al- ready permits corporate operations in poultry, alfalfa production and a number of other enterprises? New markets for Nebraska farm products are goal of Food Process- ing Research Center taking shape at University of Nebraska Institute of Agriculture and Natural Resources; boosted by Gov. Kerrey's an- nouncement at Ag 2001 inaugural that he'll push for $50,000 special appropriation in 1984 budget. Along with modest funds from Department of Economic Develop- ment and other sources, this will allow hiring of full-time person, possibly in July, to direct the opera- tion, reports Dr. Lowell Satterlee, acting director of Institute's food technology department. In addition to technical research, Satterlee says, Center will be seek- ing individual or smalt group entre- preneurs willing to venture into new food processing operations- shades of Beatrice Foods, Fairmont Foods, Dorothy Lynch, small enter- prises that grew up in Nebraska, Direct corollary of new food search, Satterlee says, is spin-off of new sources of animal feed and in- dustrial raw materials from ag prod- ucts, "We're starting on a shoestring, but we're stArting." he strltes Nebraska beef promotion expected to get off the ground with beef check-off program, Nebraska Beef Industry Develop- ment Act drawing broad support. could finally be enacted; just missed last year when session ended. LB19, heard by Agriculture Com- mittee last week, would put 25~ a head fee on all cattle sold in state; proceeds to plug Nebraska beef sale; managed by seven-member board selected from and by cattle industry. Platte River Forum should get fund- ing to pursue efforts to chart future use of water from that source. Lame duck sessicn of Congress appropriated $50,000 to Bureau of Reclamation for it; go-ahead by committees in House and Senate still needed; not seen as problem. Whopping Crane Trust counted on for another $25.(100; state might be asked to kick in same. With that. computerized study can be completed this summer. Dear Jack: Please inClude me as a charter subscriber of Nebraska Resources Report at $35 per subscription for 12 monthly issues, o I am enclosing payment of $ ($35 each) for _ subscriptions, (Make checks payable to; Nebraska Resources Report) o Please bill me for _ subscriptions. Mail NRR to; Name Address Name Address Here are some others who might like to see NRR Please send complimentary copies to: Name Address Name Address Nebraska Resources Report, P.O. Box 5948, Lincoln, NE 68505 IO~d.lf\ Resources Agencies (;:, 'f...... II<> I ,-<l'-> ~ '- ~'~ L"i' . ~ .. "> ~. ..;I , Moore Kramper Bartak Kavan f:~ ~.., r::l AtJ, f..~ ~~ \ ~ ~ t '~r.' ..J ,YJ ~:a Welsh Christensen Shaughnessy Schroeder Half the 16 members of Nebraska's Natural Resources Commission are new going into 1983. ThiS includes Paul Schroeder, Arapahoe farmer, appointed late last year to fill a vacancy. Also includes appointee of Gov. Kerrey, attorney Mike Shaughnessy of St. Paul. Mike is active in irriga- tion activities:n the Loup Basin, as is his father, Cyrus. Kerrey reappoint- ed the other two gubernatorial rep- resentatives, Richard Hahn, Grand Island businessman, and Robert Bell, general manager of Metropoli- tan Utilities District in Omaha. Members newly-elected at basin caucuses in January were: . Vince Kramper, farmer and elec- tronics dealer, Dakota City. . Milton Christensen, farmer, Omaha. . Clifford Welsh, farmer, Brule, . Donald Kavan. farmer, Morse Blulf. . Frank Bartak, farmer, Merna. . Larry Moore, farmer. Ulysses. Wayne Johnson of Cook, farmer, was re-elected to the Commission. New wrinkle coming under con- sideration for Nebraska water man- agement is the Special Improve- ment Project Area. It's been around since natural re- sources districts originated 10 years ago, but apparently none ever has been organized. Now Upper Elk- horn NRD has established an im- provement project area along the full reach of the Elkhorn through Dodge County and Nemaha NRD is looking at one in Talmage and sur- rounding rural area. Notable feature of this approach: property owners receiving benefits can be assessed at least part of total cost. Elkhorn work would be aimed at relieving flood damage to farm- steads, roads, utilities and railroad property through Dodge County and stabilizing wandering channel. Estimated cost of $1 million was put Zip Code Zip Code lip Code Zip Code on the work, an undetermined share coming from adjacent landowners In amounts varying with distance from the river. Some funds are envi- sioned from local governments, in- cluding NRD, and project sponsors have applied for state help from Water Development Fund, Talmage project would be unique in combining urban and rural prop- erty; also makes the venture more complicated, says Don Hood, Nemaha manager. Work would include building a drainageway from the town, doing channel work and clearing beaver dams, Soil Conservation Service studies put a $137,000 tag on it Public hearing was held in Decem- ber and the Nemaha NRD board will meet Feb. 16 to decide whether to proceed, Improvement project concept was included in original NRD enabling act to offset elimination of drainage districts, watershed districts and several other special purpose enti- ties. Pioneering efforts in Elkhorn and Nemaha will be watched closely. Sherman L. Lewis hasn't worked with natural resources districts be- fore-not surprising, as you have to come to Nebraska to do that, the only state that has them. Now Lewis is coming to Nebraska, as new state conservationist tor SCS, He's looking forward to oper- ating in NRD structure, recently spent most of a week here familiariz- ing himself with the districts and other aspects of new assignment He also is looking forward to help- Ing initiate the target concept with special soil conservation work in eastern Nebraska and water saving operations to the west. 11'11 be a long way from his present post as SCS chief in Massachusetts -but. he says, pleasantly close to his home roots in Oklahoma. He'll be on board Feb. 28, replacing Gene Sullivan who was transferred to MississippI. J '-- ~~-~ ,~ Sulk Rate U.S. Postage P A I D Lincoln, NE Permit No. 553 ; ~~ Nebraska Resources Report February, 1983 Vol. 1 NO.2 An Incisive update on Nebraska's nalural resources-water. soil, minerals. energy-and theIr applicatIOn 10 agriculture and Industry of the stale: published monthly by Nebraska Resources Report, Jack Hart. Editor. Resources Chief Raun For Nebraska's soil and water re- sources, Rob Raun could be the most important person in the state in the next four years. Raun is the prominent agriculturalist and former University of Nebraska regent lured into the position of state agriculture director by Gov. Bob Kerrey. To a degree not yet generally ap- preciated by Nebraskans, Raun will be Kerrey's top adviser on natural resources, as well as on agricultural matters. This assurance, appealing to Raun's abiding concern for these resources, was the principal reason the new governor was able to coax him off hiS tarm near Minden. Raun's resources role, particularly as it relates to water, carries im- mense implications into the Kerrey administration and through the agri- cultural fabric of the state. Kerrey has expressed a deep ap- preciation for Nebraska's soil and water. By his own admission, though, he is not broadly back- grounded in technical aspects of these resources or, more important- ly, in the political intricacies of water development issues. This is the kind of policy vacuum zealots from both sides rush to fill. Kerrey's refusal to endorse the O'Neill irrigation project in the cam' paign led water development inter- ests to fear that, as governor, he would be overly supportive of the protectionist. anti-development philosophy. Rob Raun, on the other hand, is an avid supporter of the impoundment of water in more and more locations over the state. He has been a leader of the Nebraska Water Resources Association and served on its task force for identifying sites for water storage. He has been a director of the proposed Catherland irrigation project in south central Nebraska, And he's an avowed supporter of the O'Neill project. Those who know Raun well, though, feel no one in the state could have a greater respect for soil and water and more commitment to pro- tecting them from abuse. Settling into his director of agri- culture chair recently, Raun said his general philosophies on water de- velopment are shared by his gover- nor, even though there might be some differences on specific proj- ects. So the credentials of O'Neill within the governor's office, as indeed its very survival, remain very much in question, At one point, in its lame duck session in late 1982, Congress pulled the plug on the projecfs life support system. It was restored only through the vigorous efforts of Ne- braska Congresswoman Virginia Smith and her key position on the agricultural subcommittee of the House Appropriations Committee. Should the obstacles thrown up in federal court by opponents of the project finally be overcome this year, the buck will pass SWiftly to Gov. Kerrey, The projecfs feeble condition in Congress probably could not endure indifference from the governor's office. Raun also advocates appropria- tion of "significant amounts" of state tax money for SOil and water devel- opment "when the state budget can support it." Even in tight economic times, he sees added value to con- structing projects because they would build jobs. In addition to being the governor's chief adviser on resource policy, Raun Will be Kerrey's representative on the Natural Resources Commis- sion. He will not be a voting member of the Commission but will meet with the group regularly and participate in its official deliberations. To the extent he has time to do so, Raun also will assist in coordinating the activities of other state agencies involved in natural resources. This assignment might be limited for a while, he says, because budget de- ficiencies have deterred the hiring of key assistants, including a deputy administrator of the Department of Agriculture. "Your first issue looks great I have had time to read only half of it and already I am 100% sold," -(Former Gov.) Robert B. Crosby, Lincoln, NE "Your Nebraska Resources ReporL.is very good and will serve to keep us informed," "First issue is great Keep it Up'" -Vance Anderson, Hastings. NE -Hal Schroeder, Lincoln. NE "Your lirst edition is excellent and I can assure you I will be a regular reader, Your pUblication can be an excellent medium for disseminating correct information on what is really going on and what the real issues are with Nebraska Wale,," -Gerald L. Abts, President, Lindsay Manufacturing Co., Lindsay, NE This kind of response and support from readers of Vol. I, No, 1 is most gratifying, It strengthens our determination to inform concerned. ,., people more fully of the complex and rapidly-moving events affecting ., their resources, P,S, Subscription order blank is on back page, Jack Hart, Editor Lawmakers Water Year rT- '~ #It I ~ ~ ... l -------------------------------------------1 ^'" ~ - - ~~ - """""'" "'^' Nebraska Resources Report Charter Subscription I Jack Hart I Nebraska Resources Report I P,O, Box 5948 I Lincoln, Nebraska 68505 I I I I J. l'iilliui:J r1cOoncld SlEl"csent, Bldg., Room ~23 ...J.j herCiJn Denver, CO 8020J Hoagland This will be a "water year" in the Nebraska Legislature with more than 20 water-related bills intro- duced, several highly significant and historically controversial. Chances appear good, though, that some of the major issues will pass. A more conciliatory attitude on water issues, more willingness to find compromise solutions, is appar- ent at this time than perhaps ever before. This is acknowledged by both urban and rural senators, city interests who have pUShed for more regulation and agriculturists who have resisted regulation. Sen, Peter Hoagland of Omaha, who has taken the lead in introduc- tion of water bills, sees both sides moving to a center position: "Urban senators have moved from the ideal- istic to the realistic; agricultural interests see the need to work col- lectively." Hoagland's bill offering includes some potentially divisive issues, in- cluding protection of in-stream flows and giving municipalities a higher preference for groundwater than is granted agricultural users. But Hoagland has stuck strictly to recommendations of the Natural Resources Commission, which he notes IS heavily rural-oriented. From the other side, rural interests in the Nebraska Water Coalition, in- cluding livestock organizations, are backing legislation for state-man- dated groundwater standards and authority for the state to impose restrictions in water-short areas if the local natural resources district does not do so. This moves signifi- cantly away from the traditional rural resistance to state regulation. Clayton Lukow of Holstein, head of the Water Coalition and chief spokesman for the new thrust. cau- tions that this does not mean rural interests have foresaken local con- frol of water matters. But it will give local officials, through NRDs, more "backbone" to institute regulations if it is understood that otherwise the state will do so, he explains, Intense pressure from landowners against water regulations can keep NRD directors from imposing regu- ..Iat~ons or de.feat directors who at- tem.,t to do so, he saY~. He cites the Little Blue NRD, in which he lives, where local pressures are blamed for a two-year deferral of stricter regulations on water use. 1 "If inlense local pressure pre- cludes the proper action, then urban pressures will take over and force it on us," Lukow says, stressing that it is better for rural interests to be in- volved in setting up the fall-back mechanism for state authority. Another example of the concilia- tory attitude stems from a hotly- debated proposal last year to protect wet meadows, particularly in the Sandhills, against excessive decline in the water table. Sen, Tom Vickers of Farnam, introducer of last year's measure, says compromise efforts have led to modest changes and that the 1983 version of the bill is expect- ed to have general support. Sen. Chris Beutler of Lincoln, a pro-regulation leader of the past. says he is impressed by some efforts being made by irrigators to limit their water use. This reaction came from hearings across the state last fall by the Public Works Committee, He is especially pleased with ac- tions in the Upper Republican NRD of southwestern Nebraska where regulations of a groundwater con- trol area have been strengthened. Water use restrictions in the past few ycnrs nlrcndy have helped ~tcm water table declines there, On the other hand, Beutler pOints to Holt County in north central Ne- braska as a place where the natural resources district is "ignoring the problems." Beutler says the nitrate level in underground water there generally exceeds 20 parts per mil- lion, more than double federal mini- mum standards, He says the NRD "has no planning in effect and has not discussed instigating a program or determining what it might do." Beutler, who gave up his seat on the Public Works Committee this year to become chairman of the Judiciary, has introduced LB426 to require the state to see that an NRD takes appropriate action if the ni- trate level gets to 14 parts per mil- lion. The senator notes that this is higher than federal standards; says he's willing to adjust the rate further if necessary to get approval. Sen. Loran Schmit of Bellwood, chairman 01 the Public Works Com- mittee, is credited with contributing to the more harmonious attitude on water legislation, Starting before the Legislature convened, he has worked at building relations be- tween both ends of the hydro-politi- cal spectrum, Big Mo Missouri River is drawing new downstream attention from ship- ping interests, power companies, cities and other water groups in Mis- souri River Basin Association. Mostly private interests, they want more input in governmental deliber- ations by Missouri Basin States Association; seek meeting with state officials when that group meets in Kansas City Feb, 10, according to Randy Moody, spokesman for barge interests in Nebraska,