SENATE COMMITTEE ON NATURAL RESOURCES, AGRICULTURE, SALMON AND WATER

February 02, 2001 Hearing Room B

8:00 AM Tapes 23 - 24

MEMBERS PRESENT: Sen. Ken Messerle, Chair

Sen. Frank Shields, Vice-Chair

Sen. Bill Fisher

Sen. Ginny Burdick

Sen. Jason Atkinson

Sen. Roger Beyer

Sen. Ryan Deckert

STAFF PRESENT: Judith Callens, Committee Administrator

Patricia Nielsen, Committee Assistant

MEASURE/ISSUES HEARD: HB 2130

SB 302

SB 214

SB 328

Informational Meeting/Department of Agriculture

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 23, A
005	Chair Messerle	Opens meeting at 8:05 a.m.
HB 2130 – PUBLIC HEARING
010	Judith Callens	Committee Administrator. Presents bill.
020	Chuck Craig	Deputy Director, Department of Agriculture. Testifies in favor. Submits written testimony (EXHIBIT A).
035	Vice-Chair Shields	Asks what happens if the two appointing authorities do Not agree.
040	Craig	Responds.
045	Chair Messerle	Closes public hearing on HB 2130. Opens work session on HB 2130 at 8:07 a.m.
HB 2130 – WORK SESSION
050	Vice-Chair Shields	MOTION: Moves HB 2130 to the floor with a DO PASS recommendation.
050		VOTE: 7-0 AYE: In a roll call vote, all members present vote Aye.
055	Chair Messerle	The motion CARRIES. VICE-CHAIR SHIELDS will lead discussion on the floor.
060	Chair Messerle	Closes work session on HB 2130, opens work session on SB 302 at 8:09 a.m.
SB 302 - WORK SESSION
060	Callens	Describes bill.
070	Chair Messerle	Comments that the bill was brought back because of concerns.
075	Sen. Atkinson	Asks whether this is a safety placeholder for SB 172.
076	Chair Messerle	Confirms.
080	Sen. Atkinson	MOTION: Moves SB 302 to the floor with a DO PASS recommendation.
085	Chair Messerle	Leads discussion.
095		VOTE: 7-0 AYE: In a roll call vote, all members present vote Aye.
	Chair Messerle	The motion CARRIES. SEN. DECKERT will lead discussion on the floor.
099	Chair Messerle	Closes work session on 302. Opens work session on SB 214.
SB 214 - WORK SESSION
100	Callens	Describes bill, and –1 amendments.
120	Chair Messerle	Closes Work session on SB 214. Reopens work session on HB 2130.
HB 2130 WORK SESSION
110	Vice-Chair Shields	MOTION: Requests unanimous consent that the rules be SUSPENDED to allow SEN. BURDICK and SEN. DECKERT to BE RECORDED as voting AYE on the MOTION: Moves HB 2130 to the floor with a DO PASS recommendation.
		VOTE: 7-0
	Chair Messerle	Hearing no objection, declares the motion CARRIED. Records votes. Closes work session on HB 2130. Reopens work session on SB 302.
SB 302 – WORK SESSION
120	Vice-Chair Shields	MOTION: Requests unanimous consent that the rules be SUSPENDED to allow SEN. BURDICK to BE RECORDED as voting AYE on the MOTION: Moves SB 302 to the floor with a DO PASS recommendation.
		VOTE: 7-0
	Chair Messerle	Hearing no objection, declares the motion CARRIED. Records votes. Closes work session on SB 302. Reopens work session on SB 214.
SB 214 – WORK SESSION
140	Sen. Atkinson	MOTION: Moves to ADOPT SB 214-1 amendments dated 1/30/01.
145		VOTE: 7-0
146	Chair Messerle	Hearing no objection, declares the motion CARRIED.

148	Sen. Atkinson	MOTION: Moves SB 214 to the floor with a DO PASS AS AMENDED recommendation.
148		VOTE: 7-0 AYE: In a roll call vote, all members present vote Aye.
150	Chair Messerle	The motion CARRIES. SEN. ATKINSON will lead discussion on the floor.
155	Chair Messerle	Closes work session on SB 214. Open work session on SB 328.
SB 328 - WORK SESSION
170	Callens	Describes bill and –2 amendments.
190	Jock Mills	Director of Government Relations, Oregon State University. Testifies in favor of amendments.
215	Sen. Burdick	MOTION: Moves to ADOPT SB 328-2 amendments dated 1/30/01.
220	Chair Messerle	Leads discussion.
225	Sen. Fisher	Requests information about the –1 amendments.
226	Callens	Responds.
245		VOTE: 7-0
246	Chair Messerle	Hearing no objection, declares the motion CARRIED.
250	Sen. Burdick	MOTION: Moves SB 328 to the floor with a DO PASS AS AMENDED recommendation.
251		VOTE: 6-1 AYE: 6 - Beyer R, Burdick, Deckert, Fisher, Shields, Messerle NAY: 1 - Atkinson
255	Chair Messerle	The motion CARRIES. SEN. BURDICK will lead discussion on the floor.
260	Chair Messerle	Closes work session on SB 328. Opens informational meeting for the Department of Agriculture, relating to Agriculture Economy.
DEPARTMENT OF AGRICULTURE
270	Phil Ward	Director, Department of Agriculture. Introduces presentation by Brent Searle.
280	Brent Searle	Dept of Agriculture. Presentation using submitted written material (EXHIBIT C).
290	Chair Messerle	Asks about comparison with other industries.
295	Ward	Responds.
330	Sen. Burdick	Asks about forestry and value added processing.
350	Sen. Fisher	Asks whether prices include retail.
360	Ward	Explains.
365	Searle	Continues and refers to submitted materials.
390	Sen. R. Beyer	Inquires whether Christmas trees are included in nursery/greenhouse category.
395	Searle	Responds.
400	Sen. Fisher	Assumes cattle includes all animals raised for food.
Tape 24, A
010	Searle	Responds. Continues.
020	Sen. Burdick	Inquires about cause of higher agricultural expenses.
025	Searle	Explains. Refers to submitted materials.
050	Sen. Atkinson	Asks whether onion costs are attributable to NAFTA.
060	Searle	Responds.
065	Chair Messerle	Inquires whether export of hay has dropped considerably.
070	Searle	Explains.
075	Sen. R. Beyer	Asks about blue-green Algae from Klamath Basin.
080	Bond	Responds.
095	Sen. R. Beyer	Comments about Christmas trees.
100	Searle	Continues.
120	Chair Messerle	Asks what percentage of production is from exports.
125	Searle	Responds.
130	Chair Messerle	Asks whether numbers for 2000 are balancing out again.
135	Searle	Elaborates.
140	Vice-Chair Shields	Asks whether there is a cycle.
150	Searle	Affirms.
165	Chair Messerle	Asks whether banks require more collateral because of lower net return.
170	Searle	Responds.
180	Chair Messerle	Comments that banks put emphasis on cash flow and the downward trends can cause financial regulators to put pressure on banks.
185	Bond	Elaborates.
190	Vice-Chair Shields	Asks how Oregon compares with other northwestern states.
195	Searle	Explains.
240	Sen. Burdick	Asks what problems are caused by invasive species.
245	Searle	Responds.
260	Chair Messerle	Asks about zebra mussel from the Midwest and other invasive species.
270	Sen. Deckert	Asks about long term outlook or concern as Oregon liberalizes trade agreements.
275	Bond	Explains.
300	Sen. Deckert	Inquires about rationale for tariff rate difference.
305	Bond	Answers.
310	Searle	Continues.
325	Sen. Burdick	Asks whether Oregon wheat is competitive in Asian economy.
330	Searle	Explains.
350	Bond	Comments on strong production worldwide due to good weather years.
360	Chair Messerle	Asks for breakdown of Asian markets.
380	Searle	Discusses trade opportunities.
410	Sen. Burdick	Asks about monitoring of pesticides being used in other countries.
420	Bond	Explains inspection system.
440	Sen. Burdick	Asks whether use of pesticides is part of trade agreements.
Tape 23, B
020	Bond	Responds.
025	Searle	Describes discussion of those issues.
040	Chair Messerle	Asks whether increased renting of land indicates farmer population is aging.
045	Searle	Affirms and describes projections.
060	Chair Messerle	Asks about cost efficiency of buying versus renting land.
065	Sen. R. Beyer	Asks whether numbers will increase as farms change hands.
075	Searle	Responds.
080	Chair Messerle	Inquires about percentage of farm income reflected by part-time versus full time farming.
090	Searle	Responds.
100	Chair Messerle	Asks about secondary lands and whether such land does not represent a primary source of income of many landowners.
105	Searle	Elaborates.
130	Chair Messerle	Asks about impact of market consolidation on cost of production.
135	Searle	Describes increased costs.
140	Sen. Fisher	Comments about other cost increases experienced by farmers.
147	Searle	Continues.
202	Chair Messerle	Asks whether high farm value is seen only in Willamette Valley.
210	Searle	Responds.
220	Chair Messerle	Draws comparisons to timberland.
225	Searle	Concludes.
240	Callens	Describes recent report on invasive species.
250	Chair Messerle	Adjourns meeting at 9:17 a.m.

Submitted By, Reviewed By,

Patricia Nielsen, Judith Callens,

Committee Assistant Committee Administrator

EXHIBIT SUMMARY

A – Testimony on HB 2130, Charles Craig, Oregon Dept of Agriculture, 1 p

B – Testimony on SB 214, Jim Myron, Oregon Trout, 1 p

C – Written Testimony, Brent Searle, Oregon Department of Agriculture, 12 pp