Agriculture and Vermont's Future

When we think of Vermont agriculture, we think of green pastures full of grazing cows, with lush cornfields in the background.  That has always been part of our heritage and it will remain part of our future agricultural landscape. 

We know that dairy farmers have had a number of very difficult years and that is caused by the price they receive for their milk.  This price is set by a totally ridiculous pricing system set in Washington. It has nothing to do with the cost of producing mile.  There is little that the state can do to address this issue, but our federal delegation is hard at work to change this system.  As a state Senator I have been active in working with them and as Governor I would remain an active participant in getting the federal government to develop a reasonable reimbursement rate for the milk from our dairy farms. 

There is a great deal more to agriculture in Vermont and here are some of the actions I would take to help in the continuing diversification of our farming economy.  As you will see, the free market is alive and well in the redevelopment of Vermont agriculture.  I believe that the government can lend some assistance in possible access to capitol, but what we really need is a governor who understands that agriculture is alive and well and diversifying rapidly in our state.  This is where a governor can use the office to promote the many wonderful and exciting things that are happening in Vermont.

• There are a number of small beef, lamb and pork producers in our state.  They have said for several years that they could produce 80% of all the beef and pork we consume in Vermont if they had access to the proper processing facilities.  As Governor I would work with private business and the producers to see that this issue is addressed and help these producers more towards their goal of supplying more and more of the meat we consume.  The same issue applies to poultry.
• The success of our Vermont artisan cheeses is well known.  The growth of the program at the University of Vermont and the sale of Vermont cheese all over America is an excellent example of what our future in Vermont agricultural products can become.  As this sector continues to grow, I would listen to their plans and where the state can be of assistance, I would make certain the support was available.
• Vermont wine makers and our breweries continue to grow.  The Agency of Agriculture needs to become knowledgeable about the cultivation of grapes and hops.  These are two crops that can become a very important part of cash crops that will keep agricultural land in farming for years to come.  The demand for the basic supplies of grapes and hops that are grown in Vermont is growing and we should work to meet that demand.
• Many years ago, Vermont was the breadbasket of the East.  There is no reason why we cannot return to that claim.  As farms became larger and larger and all the grain was grown in the mid-west, the strains of wheat and other grains that used to be produced in Vermont have been lost.  The University of Vermont Extension Service has been working with Vermont farmers to redevelop strains of wheat and other grains that grow well in our climate and in our soils.  As governor I would make certain that this work continues and we provide the necessary support to take back the claim of being the breadbasket of New England.  Working with Vermont businesses such as King Arthur’s Flour and the Red Hen Bakery, Vermont agriculture can return to its roots and grow crops that are suited for our climate and do not require heavy fertilizing and do not require high transportation costs for the finished product.  It will be important to make certain that financing is available for these developing agricultural businesses and as governor I would make certain that the Vermont Economic Development Authority (VEDA) has the necessary capitalization to help these agricultural based businesses grow. 
• Throughout Vermont there are some very exciting projects with bio-diesel.  At Roger Rainville’s farm he is successfully producing all the fuel he needs for this farming equipment.  The sunflowers that are grown produce the oil that is processed into bio-diesel and the processed sunflower seeds produce high protein feed for the calves.  The total cost of producing the bio-diesel on the farm is $1.70 a gallon.  The cost of purchasing that bio-diesel is $2.70 a gallon.  This is an excellent example of a win for the farmer with a number of cost savings and a win for the environment.  The transportation costs are reduced and the need to purchase feed from out-of-state is greatly reduced.
• In times gone by it took 20% of a farmers land to produce the feed to take care of the horses and oxen that provide the “work” for the farm.  It turns out that it takes 20% of the farmers land to produce the bio-diesel to run the machines of today.  It seems that farmers are simply relearning the farming practices of their grandfathers.

Buying local and farmer’s markets are helping fruit and vegetable growers all over the state find outlets for their products.  I believe that what is necessary to help producers sell their products not only locally, but regionally is a series of cooperative type organizations.  

There is a business in Lamoille County called Deep Roots, and they have been in business for many years.  They are a cooperative that grows organic vegetables and then sell them in Boston and New York.  This allows the farmers to do what they do best, grow crops. The marketing is taken care of by that part of the business.  Each year every farmer knows what they will grow and that the sale of those crops is taken care of. Deep Roots is in the process of building a storage facility to facilitate year around access to many of its fruits and vegetables.  

A series of these types of businesses around the state would assure that an on-going supply of fruits and vegetables would be available to markets and restaurants throughout the year.

A Realistic Jobs Plan for Vermont

As I have said for year, government doesn’t create jobs, the private sector does. What government can do is help create the infrastructure and environment that encourages the growth of wealth in our state.

As governor there are a number of things I would work to have implemented to help retain and create jobs for Vermonters. The one issue that we all agree upon is that the telecommunications-high speed Internet structure must be developed rapidly and it must reach all parts of the state. This will need to be a public/private partnership to support access for all Vermonters. This is an example of having lots of the parts, but no system. My administration will immediately assemble the parts that exist, the parts that are planned and all the partners to lie out the completion of an up-to-date system for all of Vermont.

I will implement the following ideas as rapidly as possible to grow jobs for Vermont.

I will properly fund the regional economic development organizations and the regional planning commissions. This is where local business folks come to get the information they need. I will make sure that each region had the connections with groups such as the small business administration, Epcore, job-training programs and the sustainable jobs fund. These offices need to be the one stop-shopping place for regional businesses. I will shift $1 million from existing money spent in the central office in Montpelier.

I will assemble a group of small retail business owners to work with state government to consolidate the number of licenses and permits they need to operate their businesses. If we want our downtowns to prosper, we have to make it easier for retail businesses of all kinds to thrive in our downtown areas.

Travel and Tourism is an important part of the Vermont economy. For years the dollars we have invested in this area have only been in marketing. I believe that the agency needs to have several specially trained staff who understand the needs of these special businesses to work with them on business plans and marketing plans so they can get through the good and the bad times. Travel and Tourism is a specialized business just like farming and we should begin to address their business needs, not just their marketing needs. One specialized position $100,000.

Many businesses have trouble gaining access to capital, yet we know that our banks have money to lend. The problem is not that the banks don’t want to lend money, but they have come under so much more regulation from Washington that they can take very little risk. I will work with the Vermont Economic Development Authority (VEDA) and develop a new program that would allow VEDA to work with these businesses and the banks to create lending programs that cover the risk that the banks can’t take. This type of partnership should open the door to lending from the banks and encourage significant growth. Potentially several million dollars to capitalize.

Vermont is a state of innovators and it is time we truly recognized this and turned this asset into real jobs and real wealth for our state. I will start an office of Innovation and Intellectual Property as governor. This office will work with all the regional economic development groups and teach them the basics of helping a business or an individual with an innovative idea get on the path of securing the intellectual property rights for their idea. This office will also help find sources of capital for innovators and will encourage the growth of innovation of all types all around the state. As innovation and the demand for assistance with applying for patents grows, there could be assistance from this office in the form of grants and loans to help inventors achieve their goals of getting their intellectual property and then starting a successful business. For several years I have worked with VCET (Vermont Center for Emerging Technology) to help grow this type of idea. VCET now has a small seed capital fund to help businesses that meet their criteria.

The industry that has been hit the hardest in this recession is that of the building trades. Just like the rest of the country the Vermont housing sector has stalled. From looking at numbers and talking with folks in the field, I think it is safe to say that this sector is suffering from an unemployment rate of at least 30%. If we really want to jump start the Vermont economy, this is the sector we should help. I propose borrowing $15 million a year for two years and giving the money to Housing and Conservation. The housing organizations around the state very easily turn $15 million into $60 million with the financial packages they develop. This would mean $60 million a year spread around the state to begin to address the issue of affordable housing. Every discussion concerning growing our economy comes back to the lack of affordable housing. This two-year program would get the building trades back to work and begin to address the shortage of affordable housing.

I believe that the above steps, combined with my plan for agriculture, will get our economy moving in the right direction and will provide job growth for a number of years. We can fund many of these changes by a reallocation of the existing dollars in the Agency of Commerce and Community Affairs. I feel that these dollars need to be at work in the field, not in Montpelier. There are many Vermonters who are eager to grow their business or to start a business; we just have to provide the right attitude and the right incentives.