Agriculture Secretary Dale Rodman said the state's anti-corporate farming
laws hinder the growth of agriculture and recruitment of new
agribusinesses to Kansas. Also, in a letter to Rodman earlier this
month, Attorney General Derek Schmidt questioned the constitutionality
of at least one provision of state law.
"Our corporate farming
laws need to be repealed," Rodman, a former executive with agribusiness
giant Cargill Inc., said during an orientation session for freshman
legislators. "Basically, our state is an under-utilized asset."
Eight
other states — Iowa, Minnesota, Missouri, Nebraska, Oklahoma,
Wisconsin, North Dakota and South Dakota — have laws restricting
corporate farming, according to the National
Agricultural Law Center at the University of Arkansas. However, the St.
Louis-based 8th U.S. Circuit Court of Appeals, with jurisdiction in most
of those states, has struck down voter-approved restrictions in
Nebraska and South Dakota.
Kansas law generally limits corporate ownership of agricultural land to family farm
corporations, family partnerships or corporations with 15 or fewer
stockholders, who must all be Kansas residents. The state also generally
requires at least one partner or shareholder to live on the land or be
actively engaged in supervising the work.
There are exceptions to the law for feedlots and poultry operations. Also, counties can allow corporate dairies and hog farms within their borders, and legislators last year made it easier for them to do so.
Kansas has limited farm
ownership since 1931, when it enacted a law barring in-state and
out-of-state corporations from producing wheat, corn, barley, oats, rye
or potatoes, or running dairy operations. Attempts to loosen
restrictions in recent decades have met with fierce opposition from
advocates for family farmers and some rural legislators.
Kansas Farmers Union President Donn Teske, a Wheaton farmer, said repealing the remaining restrictions on corporate farming would be "the end of family farming."
"Every
time a 2,000-cow dairy goes in, it takes 20 dairy farmers out of a
community," Teske said. "That is not economic development. That is rural
depopulation."
But after meeting with lawmakers, Gov. Sam
Brownback, a former Kansas agriculture secretary himself, told reporters
the laws were of "questionable constitutionality."
"We're doing a
lot of recruiting of businesses to come into rural areas, had quite a
bit of success so far, but that is an issue for a number of them," he
said.
Schmidt's letter to Rodman, dated Jan. 2, responded to the
secretary's request for a formal legal opinion from the attorney
general's office as to whether the state's anti-corporate farming
laws are constitutional. The attorney general declined to issue such an
opinion but said a provision allowing only corporations formed by
Kansas residents to own land was "discriminatory."
The federal
appeals court in St. Louis has ruled that such restrictions are
unconstitutional because they interfere with interstate commerce.
"We
cannot conceive a circumstance under which a court would find this
provision to pass constitutional muster," Schmidt wrote to Rodman.
Schmidt's letter also said "there are reasonable arguments" that other parts of the state's anti-corporate farming laws are unconstitutional and advised Rodman to approach legislators about potential changes.
It wasn't clear Tuesday how receptive legislators are to repealing the state's remaining restrictions on corporate farming, and some were surprised that Rodman broached the idea.
But
House Agriculture Committee Chairwoman Sharon Schwartz, a Washington
Republican and farmer, said such a move would help small businesses, not
just large ones.
"If we're going to be competitive — and to be
able to grow agriculture — then we probably need to be opening up the
state," Schwartz said.
Still, Kansas Farm Bureau President Steve Baccus, an Ottawa County farmer, said legislators should move cautiously.
"A
lot more discussion needs to take place, more give and take, more
understanding from all parties about where we are going to go and how we
are going to get there," Baccus said.