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Members of the state Policy Development committee met earlier this month to become familiar with the myriad of issues facing agriculture. Presentations were given on topics such as the status of various conservation, Farm Service Agency and natural resources programs, Ohio Department of Agriculture, Nationwide, school funding and school breakfast programs, agricultural lending, College of Food, Agricultural and Environmental Sciences, local government finances and livestock and farm economies.

Greg Vergamini, of the Ohio Manufacturers’ Association, spoke to the group about Ohio’s energy policy. He wanted to hear Farm Bureau thoughts about energy issues to incorporate them into a report the manufacturer’s organization is putting together to present to the Ohio General Assembly. He said energy issues have come to the forefront after this summer’s blackout, but his organization has been monitoring energy issues for some time now as jobs have been leaving the state due to higher energy costs. For manufacturers, after workforce costs, energy is often the next highest cost.

In addition to the concern about electricity service, natural gas prices are of concern. Vergamini said Federal Reserve Chairman Alan Greenspan said the cost and volatility of natural gas could impede the country’s economic recovery. "We’re gambling with a supply that is at a 50-year low," Vergamini said. "We’ve got a cool summer, thankfully. Supply has caught up a little bit . . . if we have a mild winter, we’ll have steady prices, but if it’s cold, the prices will go through the roof."

Volatile prices make it hard for businesses to manage costs. A solution centers on competition, he said. If Ohio can build good competition, prices will go down. He also discussed the possibilities of increasing natural gas capacity in Ohio. Vergamini said he thinks decisions about energy need to be resolved by the end of the year, because we are entering an election year in 2004.

OFBF Vice President for Government Affairs Keith Stimpert reminded the Policy Development Committee that Farm Bureau members often have resisted plans to site new energy plants or pipelines in their counties.

The Policy Development Committee will meet again Nov. 6 and 7 to finalize their recommendations to delegates at the OFBF annual meeting Dec. 3 to 5 in Columbus.