NPPD Moves Past Coal at Sheldon Station

April 18, 2015 Leave a comment


The Center for Rural Affairs released the following statement in response to news that Sheldon Station, the coal-fired power plant north of Hallam, Nebraska is undergoing a major transition from coal to an exciting and innovative power generation technology. Nebraska Public Power District (NPPD), which owns and operates the plant, plans to replace an existing coal-fired boiler at its Sheldon Station plant with one that uses hydrogen fuel. The hydrogen will be produced by Monolith Materials as a co-product from its production of carbon black using natural gas as a feedstock. Plans for the second of two boilers were not made clear.
“We applaud the Nebraska Public Power District’s staff and board of directors for taking steps to invest in a power source that can benefit the local community, while reducing the amount of harmful toxins released into the environment,” said Johnathan Hladik with the Center for Rural Affairs. “This is leadership Nebraska has been waiting for. However, today’s announcement marks only the halfway point. It’s a ‘job half-done.’ We expect NPPD to carry this momentum forward and continue this commitment to rural economic development by investing in the vast resources we have here in Nebraska for energy production, create well-paying jobs for skilled workers, and protect our most vulnerable populations – children and the elderly – from a range of health issues exacerbated by harmful pollutants released by burning coal.”
Research by the Center for Rural Affairs and Synapse Energy Economics shows that continuing to operate Sheldon Station as it has been in the past would have incurred cumulative economic losses of over $1.3 billion by 2042. These are costs that would have been shifted to NPPD’s ratepayer-owners. Continuing to burn coal at both Unit 1 and Unit 2 at Sheldon Station would also have prevented NPPD from investing in the very alternatives, like renewable energy and energy efficiency, that have the potential to produce considerable economic benefits in rural Nebraska.
Center for Rural Affairs findings also show that, Sheldon Station, too old to produce more than 60 percent of the 225 megawatts of energy it was once capable of, is past-due for a transition. The power plant has quickly become a financial liability to NPPD and its ratepayers, becoming operationally uneconomical after 2020.
“Continuing to burn coal at Unit 1 and Unit 2 of Sheldon Station would have required costly updates to protect Nebraskans from exposure to harmful toxins and comply with new environmental regulations,” added Hladik.
The Center’s research predicted that NPPD ratepayers and those in the Lincoln Electric System, which contracts with NPPD for one-third of Sheldon Station’s capacity, would have picked up the tab for hundreds of million of dollars in retrofit capital costs that would be necessary for Sheldon to comply with significant, new environmental requirements.
“NPPD’s announcement at Sheldon Station today begins to reflect the values of many rural Nebraskans, who believe that we have a special responsibility to be good stewards of our natural world: to use only what we need, make smarter choices and pass on to our children the wildlife, water and natural resources we have here in Nebraska,” Hladik continued. “We encourage NPPD to adhere to these principles and seek out public involvement as future decisions are made.”
We are encouraged by the changes that NPPD has announced, and urge continued investments in renewable energy and energy efficiency that benefit rural and small town Nebraskans, and keep electricity affordable, concluded Hladik. Nebraska ranks 7th among the states for energy consumption per capita, and consistently ranks in the bottom third among states for its efforts to use energy more efficiently. Serious investment in energy efficiency will go a long way in keeping NPPD ratepayer-owners’ bills affordable.

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Creating Jobs and Self Sufficiency Through Self-Employment

April 17, 2015 Leave a comment


By Jeff Reynolds, jeffr@cfra.org, Center for Rural Affairs 

Microenterprise and microfinance have the power to empower people and transform lives. The concept was pioneered in 1976 by Muhammad Yunus, founder of the Grameen Bank in Bangladesh and Nobel Peace Prize winner. The bank was established for the purpose of making small loans to the poor − predominantly women – to help them obtain economic self-sufficiency.
The fundamental principle behind the Grameen Bank is that credit is a human right. This strategy was highly effective as the bank grew from 15,000 borrowers in 1980 to 7.67 million at the end of 2008. An astounding 97% of the 9.4 million Grameen Bank members today are women.
A Center for Rural Affairs’ study in the 1980s demonstrated high rates of self-employment in rural areas, but no economic development strategies to help in this area. Influenced by Yunus and Grameen, the Center created the Rural Enterprise Assistance Project in 1990 to fulfill the need uncovered by that research (www.cfra.org/reap).
Microenterprise development recognizes the fundamental ability of people to apply individual talents, creativity and hard work to better their lives. Microenterprise programs build on the unique ideas and skills of entrepreneurs by providing business assistance through micro-credit, one-on-one counseling, and specialized training to small businesses employing 10 people or fewer.
Microenterprises often struggle to qualify for traditional lending services. Microenterprise Development Organizations like the Rural Enterprise Assistance Project create jobs, build assets and overcome barriers of income and discrimination, all through small business development.

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Medicaid Redesign Won’t Bust Budget

March 31, 2015 Leave a comment


By Jon Bailey, jonb@cfra.org, Center for Rural Affairs 

 

Other states have found their initiatives to expand Medicaid similar to Nebraska’s LB 472, the Medicaid Redesign Act, have produced significant budget savings. Providing health insurance for low-income, working Nebraskans will result in state budget savings and economic growth.

 

Kentucky estimates their expanded Medicaid program will result in net state budget savings of $820 million from state fiscal year 2014 to state fiscal year 2021. And Arkansas estimates savings of $370 million during that time.

 

The savings Kentucky and Arkansas realized are available to all states. Providing health insurance coverage in LB 472 through private premiums and federal contributions will result in less need for state-funded mental and behavioral health programs. Other current specialized Medicaid programs would be to initiatives where the federal government is providing a greater contribution. Nebraska’s corrections program would achieve savings from released inmates receiving needed mental health and substance abuse treatment resulting in fewer reoffenders.

 

Research found that Connecticut, New Mexico, and Washington also realized budget savings in the first year of expanded Medicaid programs.

 

A recent University of Nebraska-Kearney study finds that over the next 10 years LB 472 would result in $1.5 billion savings in state spending (a conservative estimate; the experiences of other states argues it may be more) while bringing in more than $2 billion in federal Medicaid funding to Nebraska. LB 472 is estimated to result in $5 billion in economic activity to Nebraska.

 

LB 472 is not a budget buster and will result in economic growth to Nebraska.

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USDA Abandons Farm Payment Limit Reform

March 25, 2015 Leave a comment


Lyons, Nebraska – Today USDA issued their proposed rule to define what it means to be “actively engaged in farming,” and therefore eligible to receive federal farm payments.
“The purpose of revising the actively engaged definition was to make farm payment limits more effective,” said Traci Bruckner, Senior Associate at the Center for Rural Affairs. “USDA is, however, clearly more interested in defending the interests of mega-farms by preserving loose definitions that will continue to allow the nation’s largest farms to avoid meaningful payment limits.”
“This is not reform,” added Bruckner. “In 2007, while campaigning in Iowa for his first election, President Obama promised to close these loopholes, and so did Vice President Biden. But when given yet another opportunity to fulfill that promise, the White House and Secretary Vilsack took a pass, again.”
“The lack of effective payment limitations has resulted in federal farm programs financing farm consolidation and the elimination of many mid-size family farms….Barack Obama and Joe Biden will close the loopholes that allow mega farms to get around the limits by subdividing their operations into multiple paper corporations.  They will take immediate action to close the loophole by proposing regulations to limit payments to active farmers who work the land….Every President since Ronald Reagan has had the authority to close this loophole without additional action by Congress, but has failed to act.” President Barack Obama, writing as a candidate for President in his rural platform – Obama-Biden: Real Leadership For Rural America
According to Bruckner, Secretary Vilsack has said since the passage of the 2014 Farm Bill that the bill ties his hands and he can not apply any new rule to farms structured solely of family members.
“We have disagreed with that premise from day one, and this rule does nothing more than say the largest and wealthiest farms structured solely of family members are not subject to this new rule or any payment limitation,” argued Bruckner.
Most of the few farms this rule would impact, those structured as non-family member operations, will surely work with an attorney to reorganize their operations to be structured solely of family members to evade any payment limitations, Bruckner concluded.

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Water is Life

March 17, 2015 Leave a comment


By John Crabtree, johnc@cfra.org, Center for Rural Affairs 

Here in the west, we understand that there is much truth in the old joke that whiskey is for drinking and water is for fighting. Rural and small town America depend on water and our neighbors downstream count on us to preserve the quality of that water for their use as well. And farmers and ranchers are the tip of the spear when it comes to protecting water quality because much of our surface water falls first on American farms and ranches.

 

Recently, I testified at a U.S. Senate field hearing in Lincoln, Nebraska, regarding the Waters of the U.S. rule (www.cfra.org/WOTUS-Testimony). The rule seeks to cut through the chaos and confusion surrounding Clean Water Act enforcement arising from Supreme Court decisions in 2001 and 2006. The rule goes to great lengths to ensure that farmers and ranchers benefit from preserving water quality but are not overly burdened with the rule’s implementation.

 

Naysayers more concerned about protecting industries’ right to pollute should stop muddying the water with nonsense about regulating puddles, ditches and raindrops.
Water is life, for crops, livestock, and wildlife as well as farms, ranches, business, industry and for hundreds of millions of us who depend upon clean water from our rivers, lakes and streams. It is in all our interest to protect this vital natural resource. EPA and the Army Corps of Engineers should continue to listen to concerns, make improvements to the rule, and move it forward to finalization.

 

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Center Urges Return to Balanced Taxes in Nebraska

February 20, 2015 Leave a comment


The Nebraska Legislature’s Revenue Committee is hearing public testimony on LB 280 and LB 357 – two legislative proposals to make major changes to Nebraska’s tax system.

 

For years, the Center for Rural Affairs has called for a balanced approach to funding schools and local governments. That’s why we support LB 280, because it is the only balanced tax plan before the Legislature.

Jon Bailey, Rural Policy Director

Center for Rural Affairs

 

LB 280 is a bill sponsored by Senator Al Davis, which proposes to reduce property taxes for school funding purposes only, expand resources for schools, reduce reliance on property taxes through a local income tax for schools, and increase state aid to schools through a method that balances the interests of all Nebraska schools.

 

“As Nebraskans have heard for decades, the real tax debate in this state should be how to provide meaningful and sustainable property tax reform in a state where local governmental entities are too reliant upon property taxes,” said Jon Bailey, Director of the Rural Public Policy Program at the Center for Rural Affairs. “There now seems to be a consensus among the citizens, the Legislature, and the new administration that the time has come to provide meaningful and sustainable property tax reform.”

 

We believe LB 280 provides the opportunity for meaningful and sustainable property reductions, particularly in rural areas, Bailey added. However, the real question, and a serious question the Revenue committee must begin to answer must be how can Nebraska enact meaningful property tax reform and also avoid harmful cuts to schools and other key services?

 

According to Bailey’s testimony, these questions are particularly crucial for rural Nebraska. The vast majority of our state is property rich, but people poor – an increasingly smaller number of rural residents are paying the freight for our schools and our local government. Data show that residents in areas with high amounts of agricultural land pay more in combined income and property taxes than residents of areas with the least amount of agricultural land, both on a per-capita basis and as a share of income.

 

“For years, the Center for Rural Affairs has called for a balanced approach to funding schools and local governments,” Bailey continued. “A third from income taxes, a third from property taxes and a third from sales taxes – the three legged stool. The current extreme reliance on property taxes for schools and local governments shows how far that three legged stool is out of balance.”

 

That’s why the Center supports LB 280, because it is the only balanced tax plan before the Legislature, concluded Bailey. It is the only comprehensive tax plan that recognizes that property taxes and school funding drive each other, and the only comprehensive tax plan  proposes to significantly reform that connection.

 

To view or download copies of Bailey’s Center for Rural Affairs testimony go to:

 

LB 280 [http://www.cfra.org/Testimony-LB-280]

LB 357 [http://www.cfra.org/Testimony-Opposition-LB-357]

 

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Time is Running Out to Sign Up For CSP

February 17, 2015 Leave a comment


By Traci Bruckner, tracib@cfra.org, Center for Rural Affairs 

Time is running out for farmers and ranchers that want to participate in the Conservation Stewardship Program (CSP) this year. February 27th is the deadline for the 2015 round. Producers should visit their local NRCS office before that date to initiate the application process.

 

The CSP rewards farmers, ranchers, and foresters for maintaining existing conservation practices and for adopting additional practices on cropland, grassland, non-industrial private forestland and tribal lands. The program pays producers for fostering clean water, better soil management, improved habitat, and other natural resource benefits.

 

As part of the CSP application process, applicants work with NRCS field personnel to complete a resource inventory of their land to determine the conservation performance for existing and new conservation activities. The applicant’s conservation performance will be used to determine eligibility, ranking and payments. Contracts are awarded to those offering the highest level of environmental benefits, with NRCS working down through the list of eligible applicants until acreage allocated to the particular state runs out.

 

In addition, producers who received a CSP contract in 2011 have the opportunity to renew their contract for another five-year period. Renewal applications must be received by March 31, 2015 to ensure a seamless transition into their next contract without a lapse in payments. Renewal contracts do not compete with new applicants.

 

Potential applicants can call the Center for Rural Affairs Farm Bill helpline by calling (402) 687-2100 or emailing Traci Bruckner at tracib@cfra.org for assistance from Center staff with knowledge about program rules.

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Redesigning Medicaid in Nebraska

February 2, 2015 Leave a comment


By John Crabtree, johnc@cfra.org, Center for Rural Affairs 

Nebraska’s failure to participate in the new Medicaid program under the Affordable Care Act has, for two years, allowed low-income, working Nebraskans to fall into a health care coverage gap that has left them economically and medically vulnerable. At least 54,000 of our friends, family members and neighbors do not qualify for Medicaid, cannot afford private insurance, and have incomes too low to qualify for tax credits in the new health insurance marketplace. Yes, you read that right… with incomes too low to qualify for coverage in the healthcare exchange.

 

The Medicaid Redesign Act, LB 472, would help redesign Nebraska’s Medicaid program, creating a Nebraska-specific plan for better, more cost-effective health coverage while also closing the coverage gap and providing coverage to working Nebraskans with low incomes who cannot afford insurance under the current system.

 

LB 472 sets out a framework to redesign Medicaid and close the coverage gap, providing the Governor and Department of Health and Human Services broad latitude to design and implement a plan for Nebraska.

 

Moreover, through 2016, 100% of the cost will be covered by the federal government. The federal share will then gradually settle to 90% in 2020 where it will then remain. And most enrollees would be required to contribute up to two percent of their income to the cost of their coverage.

 

The Medicaid Redesign Act – LB 472 – is a responsible, commonsense Nebraska solution to closing the health care coverage gap. Let’s get this done.

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Nebraskans Speak on Wind

January 29, 2015 Leave a comment


Cortland, Nebraska – Approximately 100 residents from Cortland, Hallam and surrounding communities and from as far away as Gretna and Nebraska City met at the Cortland Community Center last night, Tuesday, January 27th to discuss the proposed development of a wind farm in the area and other related issues at a Wind Information Forum hosted by the Center for Rural Affairs and Lancaster County Farmers Union.

 

Participants heard from a panel of Nebraskans who have first-hand experience with wind development, and were able to ask questions and discuss their hopes for and concerns about wind energy development in the area.
“Everyone in and around communities impacted by wind energy development deserves an opportunity to ask questions and have their voices heard,” said Virginia Meyer, Rural Organizer for the Center for Rural Affairs. “We’ve heard from people in the community, who will be directly impacted by the proposed wind project, that they haven’t had a chance to engage in a public conversation on the project.”

 

This meeting emphasized the importance of community involvement and input. We’ve seen wind bring significant benefits to rural communities but we know it must be developed and sited in a way that works for the community, Meyer added. Attendees shared their siting concerns and came away with ideas about how to ensure developers site projects in ways that work for the entire local community.

 

Several attendees asked why their area had been chosen for potential wind development. Members of the panel noted that the Cortland area was outside of the central flyway, meaning it would have less impact on migrating birds. They also noted that there was already existing transmission infrastructure in the area that new wind generation could connect to.

 

According to Meyer, professionals from multiple fields were at the forum to address questions and share ideas.  Panelists included Ross Knott, president and CEO of Petersburg State Bank in Petersburg, Nebraska, Caroline Jezierski, Nebraska Wind Energy and Wildlife Project Coordinator at the University of Nebraska School of Natural Resources, and David Vavra, Chairman of the Saline County Wind Association.

 

“Many Nebraskans have questions about wind development, covering issues such property taxes, economic development, impacts on wildlife and payments to landowners,” concluded Meyer. “This forum provided participants the opportunity to ask questions and have them answered by knowledgeable experts.”

 

And a theme highlighted by the panelists and community members was the importance of the community coming together and working with each other to decide what is best for all of them, concluded Meyer.

 

For more information contact Virginia Meyer at the Center for Rural Affairs (402) 687-2103 ext. 1014 or email virginiam@cfra.org.
Photos from the event can be viewed here: https://www.flickr.com/photos/cfra/sets/72157650532810305/

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$18 Million Available to Train Beginning Farmers and Ranchers

January 23, 2015 Leave a comment


By Traci Bruckner, tracib@cfra.org, Center for Rural Affairs 

The US Department of Agriculture announced more than $18 million in funding available to support training, mentoring, and development of beginning farmers and ranchers through the Beginning Farmer and Rancher Development Program.

 

We helped create and advocate for this program in the 2002 Farm Bill. It was finally funded in the 2008 Farm Bill.

 

The need was clear then and remains so today. A number of beginning farmers and ranchers don’t have direct roots to agriculture. While they yearn for the honest, hard work you find in farming or ranching, they need help learning the ropes.

 

The Beginning Farmer and Rancher Development Program awards grants to organizations implementing programs to train beginning farmers and ranchers. Funding includes support for workshops, farmer-to-farmer mentoring, and technical assistance.

 

Since the program was first funded and put on the ground in 2009, 145 awards have been made. That’s more than $71 million dedicated to giving the next generation of farmers and ranchers the know-how to succeed.

 

A focus on projects for veteran beginning farmers and ranchers has been added this time. It joins previous set-asides for socially-disadvantaged, limited-resource, or farmworkers who want a start in agriculture.

 

Organizations experienced in serving beginning farmers and ranchers must submit their applications by March 13, 2015. If you are a beginning farmer or rancher looking to find training and mentoring opportunities, call us at 402.687.2100 or send an email to tracib@cfra.org. We’ll point you in the right direction.

 

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