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Gov. Holcomb Calls for More Ethanol Plants


by Jerry Goshert

Published: Friday, February 3, 2017

In his first appearance before a farm group since taking office, Gov. Eric Holcomb told the Agribusiness Council of Indiana last Thursday in Indianapolis that he wants to take Indiana to the "next level" by building new roads and bridges, investing in technology and innovation, and ensuring a drug-free workforce. He also outlined some future challenges facing agricultural employers.

For the most part, Holcomb echoed the key points from his Jan. 17 State of the State address, but a few specifics emerged. Among them are growing the ethanol infrastructure in Indiana, constructing a second track for the South Shore Line in Northwest Indiana, adding more direct flights to U.S. airports, building a fourth water port along the Ohio River, and creating a regional grant program to respond to regional employee needs.

With respect to ethanol, Indiana currently has 13 refining plants that produce the corn-based renewable fuel. Holcomb said he would like to see additional plants come to the state.

"I hope that we will continue to see more (ethanol plants) sprout around our Hoosier landscape, because that's going to be the key. It's not to just support the business side of it, but to also support the men and women—the farmers at the very grassroots level themselves—that really make up the backbone of the industry."

Expanding beyond just ethanol, Holcomb said, "We are relentlessly on this hunt to bring even more agribusiness to our state, and we've aligned state resources to do just that." The front man for these efforts is Ted McKinney, director of the Indiana State Department of Agriculture. As a member of the Indiana Economic Development Corp., McKinney works to bring economic development to the state's agriculture sector.

One of the five pillars in Holcomb's legislative agenda is to generate funding a long-term roads and bridges plan. He wants to see projects that will benefit Hoosiers in all areas of the state. One of the highlights is the expansion of the South Shore rail service. He said a double track will cut commute times and attract talent from Chicago, which has the nation's third largest economy.

The governor also wants to encourage more direct flights to U.S. locations from Indiana airports, and build a fourth water port in Dearborn County. He said a new port would give Indiana a "tremendous logistical advantage."

Another part of the governor's agenda is developing a skilled and ready workforce. Holcomb said many Baby Boomers are retiring, creating a void. State efforts will be aimed at filling that void with workers who can compete in a global economy. As an example, the governor is calling for a grant program that responds to employer needs in a specific geographic area. Students who graduate from these programs would earn certificates or degrees in high--demand, high-wage fields such as nursing, welding and trucking.

"This will set us apart from our competitors across the nation," he said.

One problem currently facing many businesses is finding workers who can pass a drug test. The governor said he wants to attack the drug epidemic in the Hoosier state. He said the Midwest is "ground zero" for drug abuse, and, in Indiana, deaths from drug overdoses since 2000 have increased over 500 percent. Indiana ranks 15th nationally in overdose fatalities.

"This has become not just a personal crisis or a family crisis or a community crisis," Holcomb said. "It has become a business crisis. It has risen to that level."

Holcomb said the problem doesn't affect just one socio-economic class or age group. It affects everyone, adding that scientists at world class companies are "popping positive" on drug tests.

"I just received word that one business in Indiana actually has a sign out front that says, 'We don't drug test. Now hiring.' That really puts it in perspective about where we're at," Holcomb said.

One of governor's first official acts was to appoint a drug czar, Jim McClelland, former CEO of Goodwill Industries of Central Indiana, to coordinate the state's efforts to curb the drug epidemic.

Earlier in the day, a panel of experts weighed in on the early days of the Trump administration and how the new president's policies might affect agriculture.

The panelists, Jay Vroom of CropLife America and Chuck Conner of the National Council of Farmer Cooperatives, said President Trump's upset victory over Hillary Clinton was, in many respects, a reflection of rural America coming to the ballot box on election day.

As a result of Trump's victory, Vroom said the old paradigm—that agriculture is losing population and therefore much of its influence—has been replaced by a new paradigm, which states that farmers can indeed turn out in large numbers to influence national elections.

Vroom said he likes what he hears from the new administration, especially with respect to deregulation. However, challenges for agriculture lie in Trump's policies for immigration and trade. He said that 70 percent of agriculture's workforce consist of undocumented workers.

On trade, Vroom is concerned that if Trump imposes new tariffs on foreign imports, then our trading partners will retaliate by slapping a tariff on imports of U.S. agricultural goods.

But Vroom said that farm groups should engage the new administration, capitalizing on the momentum seized during the recent election.

"You've got to support him," Vroom said. "You've got to try."

Conner said that President Trump is "breaking the mold and doing things differently."

On trade, he hopes the U.S. does not lose critical export markets as a result of the president's "America First" trade policies. He noted that U.S. exports a large volume of pork to both Canada and Mexico.

Conner also called on the White House to appoint a Midwesterner as deputy secretary at USDA to provide a geographical balance in the department's leadership. Trump appointed former Georgia Gov. Sonny Perdue to serve as Agriculture Secretary.

In other news, Beth Bechdol, ACI president, is stepping down from her role on Feb. 1. She will focus on agriculture initiatives with Ice Miller LLP. Taking over as president will be Amy Cornell, an experience policy advisor and attorney.

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