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by Joe Cornely

The Ohio Farm Bureau Federation (OFBF) is encouraging members to vote "no" on State Issue 1, the ballot proposal that would authorize the state to issue $500 million in bonds to be used to attract high-technology industries to Ohio. The Farm Bureau position was announced following a special OFBF Board of Trustees meeting during which the farmer-leaders voted unanimously to oppose the measure.

Farm Bureau took its position because of deep concerns about the $1.6 billion "Third Frontier" initiative of which the bond proposal is the final part.

"The Third Frontier concept seems to exclude agriculture as a legitimate force in the future economy of Ohio," said John C. (Jack) Fisher, OFBF’s executive vice president. "We’re not against Ohio being a home to high technology, but we think it should enhance what we do in Ohio, not attempt to replace it," Fisher added. He said Farm Bureau has sought assurances from the Taft administration that it believes agriculture will remain a driving force for Ohio’s economy. "We didn’t get them," Fisher said.

Another reason for OFBF’s opposition to the ballot issue is that it doesn’t address burdensome tax policies and uncontrolled civil litigation laws that are hurting existing businesses, problems that also would harm newly recruited industry.

"A big part of the reason why Ohio has lost 185,000 jobs in the past two years is that companies can’t afford to stay in business in our state," Fisher said. Reforming tax and tort laws would create a better climate for our changing economy and make it more likely that both existing and new industries would have a chance to succeed, Fisher added.

Farm Bureau also called into question the wisdom of obligating taxpayers to another $690 million debt. The principal, interest and other costs of the bonds must be repaid from the state’s general revenue fund regardless of the condition of the state budget. Fisher said this obligation makes it possible that state government, at some point, may need to choose between raising taxes or cutting programs in order to have the money to pay off the bond debt.

Policy Matters of Ohio, a nonprofit, nonpartisan research institute in Cleveland has produced a comprehensive analysis of the bond proposal, a document Fisher thinks voters should read. The paper states that important questions about the bond proposal need to be asked, such as "Do we want the state to be a source of venture capital? What are the consequences for universities when they operate defacto industrial policies? How should we judge the success of the Third Frontier? What controls are in place to make sure the money is well spent?" The Policy Matters analysis is available via the Farm Bureau Web site at www.ofbf.org

Farm Bureau has carefully examined these questions and concluded that a $500 million debt obligation is not the solution to Ohio’s economic problems. Fisher added, "I hope members will think carefully about Ohio’s future and how maintaining farming and agribusiness is an important part of our state’s future. Issue 1 won’t solve our problems and so it should be voted down."