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Ag Groups Eye Rural Infrastructure


by Holly Hahn Yoder

Published: Friday, February 24, 2017

Anyone who drives a vehicle in Indiana has likely driven over a substandard road or bridge. For Hoosier farmers, infrastructure decay is even more critical. Safety, comfort, equipment damage and profit margins are all affected by Indiana's apparent failure to keep roads and bridges up-to-date

Farmer and Indiana Soybean Alliance chairman Tom Griffiths cites the costs incurred by farmers who must avoid certain roads or bridges. The ISA estimates that a 20-mile detour around a closed bridge or road costs the farmer about seven cents per bushel of soybeans.

However, a detour in northern Indiana is less of a problem for farmers than it is in central and southern Indiana, said Griffiths. He believes that roads in the north are in better shape and farmers have more routes to choose from in order to truck grain to a first purchaser. On the other hand, more rivers in southern Indiana mean more bridges. If one closes, a farmer might have to drive an extra 70 miles to get his grain to market. Every added mile cuts into a farmer's bottom line.

"Other countries produce soybeans and they can do it cheaper. What has always given us a competitive edge is our infrastructure," said Griffiths.

As the state and national economy is slowly growing, the farm economy is struggling. Griffiths believes that any help in the way of infrastructure upkeep is bound to aid agriculture.

Ted McKinney, director of the Indiana State Department of Agriculture, agrees with Griffiths. As farm equipment has grown wider, heavier and more complex over the past 30 to 40 years, Indiana's infrastructure has not been kept pace to accommodate these changes, stated McKinney.

One of McKinney's goals is to help the public understand the value of updating rural roads and the highway system—and the importance of agriculture and related businesses to the state's economy. For example, the ISDA estimates that agriculture contributes about $31.2 billion to Indiana's Gross Domestic Product.

Interstates have to be improved and maintained so raw farm products can be moved to the processor and out for distribution within the U.S. and the world. He points out that outdated infrastructure interferes with agribusinesses' ability to be competitive with other states.

The aging infrastructure doesnt simply affect the farmers' bottom line, but it is a safety issue for the rural community as well, McKinney added.

A 2016 study by the Indiana University Public Policy Institute and commissioned by the Indiana Soybean Alliance echoes McKinney's concerns. For example, the team found that about 21 percent of Indiana's bridges are either obsolete or deficient. Researchers concluded that the condition of rural roads and bridges and the state highway system in Indiana endangers the profitability of the agricultural sector.

Educating legislators about the needs of the agricultural sector and convincing them to address the infrastructure issue is the job of Amy Cornell, second vice president at Bose Public Affairs Group. Armed with the results of the study, Cornell has been meeting with legislative committees as they work on the two-year budget. She also reminds committee members that any delay in implementation of a comprehensive transportation bill might harm a vital part of Indiana's economy, agriculture.

In the past, not all of gas tax money has been used specifically to fund road and highway maintenance, said Cornell. House Bill 1002 is written so all of the gas tax revenue will be deposited into the State Highway Fund. The bill raises the gas tax by 10 cents, increases vehicle registration fees and electric car fees. As of this writing, House Bill 1002 has passed the third reading and will go to conference committee to iron out the differences with the Senate version, said Cornell. One issue that has to be resolved is how legislators will plug the hole in the General Fund due to the reallocation of the gas tax to the Highway Fund.

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