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Tuesday, April 26, 2005

Ind. Gov't. - Bill creating agriculture department signed

An AP story by Rick Callahan published today in the Louisville Courier Journal reports:

Gov. Mitch Daniels signed into law yesterday a bill creating Indiana's first cabinet-level agriculture department, an agency he predicted would both spur the state's economic revival and help Hoosier farms realize their full potential.

Until yesterday Indiana was one of only four states -- along with Arkansas, Rhode Island and Vermont -- that didn't have a stand-alone Department of Agriculture overseeing the industry.

Daniels said the department will encourage Indiana farmers, among other things, to tap into new trends such as biofuels that promise to expand the market for their crops. He said the state's agricultural industry can no longer rely on responsibilities scattered throughout state government. * * *

The new department consolidates several agencies and functions into a single entity. Among other things, the department will handle the soil and conservation functions once overseen by the Department of Commerce. Entities such as the State Fair Board and Land Resources Council also now fall under the department's umbrella.

Andy Miller, a popcorn industry executive who is the new department's director, said Indiana farmers may have missed opportunities over the years because the state lacked a unified agriculture department.

He and others are working on a strategic plan, scheduled to be released next month, that will include plans for an economic development hub intended to boost the growth of Indiana's agriculture industry, which contributes $5.2 billion annually to the state's economy.

The plan's goals will include helping Indiana become a leader in the biofuels industry by attracting investment in plants that produce ethanol, a corn-based gasoline additive.

The Daniels administration also wants to expand Indiana's food industry so that it processes more of the crops and livestock the state's farmers raise, Miller said.

An even loftier goal, he said, is capitalizing on the state's growing biotechnology expertise to make it a leader in such high-tech pursuits as genetically altering crops so that they produce pharmacological agents -- what's been termed "bio-pharming." * * *

Randy Woodson, the dean of Purdue University's College of Agriculture, said Purdue will retain responsibility for some agriculture regulatory services under the new department. Those duties include the State Chemist's Office, which regulates animal feed, seed, fertilizer and pesticides.

But he said it was time for Indiana to consolidate most agriculture-related offices under one department.

"What Governor Daniels, the Indiana Farm Bureau and others recognized is that for agriculture to have a strong voice it needed to have a seat at the table in state government," Woodson said.

The bill Daniels signed yesterday also creates a state Office of Rural Affairs that puts under one roof several government functions and funds related to rural issues.

The bill is House Enrolled Act 1008.

The business section Indianapolis Star had a related story yesterday headed "Biofuel boom energizes state plant initiative: Indiana studies incentives, new facilities to make grain-derived products as alternatives to oil." It begins:

For decades Indiana has all but sat on the sidelines as other Midwestern states developed a biofuel industry. But that could change, and soon.

Higher oil prices are making corn-derived ethanol and soybean-based diesel fuel more affordable for consumers. Minimizing energy dependence is in fashion again following the 2001 terrorist attacks and in this era of higher oil prices. And the clean-burning nature of biofuels helps the environment.

In a state with only one ethanol plant and no biodiesel makers, industry watchers say they know of more than a dozen plans for ethanol and biodiesel plants.

On the other hand, see this entry from last week citing a story in the Louisville Courier Journal titled "Ethanol benefits questioned."

Posted by Marcia Oddi on April 26, 2005 09:41 AM
Posted to Biotech | Indiana Government | Indiana economic development