In our first morning post, we looked at the Twin Cities daily newspapers' reaction to the DM & E federal loan denial. The news in the district looks at the local consequences of the decision. We've thrown in a state blogger's view for perspective, then move to the wealth of news from the district.
Albert Lea Tribune: Loan Denial Affects Local Businesses
Staff writer Sarah Light scores the local scoop:
. . .Last
year Dairyland Power Cooperative of LaCrosse, Wis., which is the power
supplier to Freeborn-Mower Cooperative Services, saw a 93 percent
increase in shipping costs to get coal to the various cooperatives it
serves. That totals up to an additional $40 million in 2006.
The
increase in cost is then trickled down to the co-ops it serves and then
to the customers and members that have ownership in the co-op.
Freeborn-Mower saw a cost increase of $1.7 million last year.
“We
are disappointed in the decision by the FRA to deny the loan
application for the DM&E railroad,” said Tim Thompson, president of
Freeborn-Mower Cooperative Services, in a statement Tuesday.
“Rehabilitation
and improvement of this line would be a tremendous economic benefit to
our region, especially to the agriculture and energy sectors. We
understand DM&E officials are assessing alternatives in light of
the FRA ruling. We will be interested in reviewing their alternatives
and will continue to work with them to look for ways to enhance rail
service to our region,” he said.
If
the DM&E railroad were upgraded that would mean more rail capacity
for agricultural businesses to transport their goods and for energy
sectors to get the coal they need, which in turn would help costs to
customers.
While it appears Rep. Tim Walz was against the loan
for the expansion, he does offer consolation to those affected by the
decision.
“Let me reassure the citizens of southern Minnesota
that I support expanded rail service. My objective has always been to
ensure proper oversight of this loan occurs,” Walz said in a press
release. “Today we can start moving forward. We can work together to
expand rail access in a responsible way that protects citizens and
communities while expanding economic opportunity for agricultural
producers and energy providers.”
EXOL and Soy Mor could not be reached for comment. . . .
Mankato Free Press: Our View — DM&E deal gets proper scrutiny
The Free Press's editorial board approves of the Credit Council's decision, and fills in bit of the political back story:
The Federal Railroad Administration’s rejection of a
Dakota Minnesota & Eastern Railroad loan request for $2.3 billion
in taxpayer-backed funding was the right call at the right time.
The Credit Council of the
FRA announced Monday that the loan was rejected because DM&E did
not meet credit standards for what would have been the largest
government loan in U.S. history to a private company.
DM&E President Kevin Schieffer says
he’s disappointed in the ruling, but the DM&E will review options
for financing the project through the private sector.
He says the project is too important to the
company and the country searching for new sources of energy. The
estimated $6 billion project was designed to be profitable by hauling
coal from the Powder River Basin in Wyoming to points east and across
southern Minnesota.
Many cities along the route, including
Rochester and Mankato at one time, opposed the plan that would have
sent 34 trains a day through neighborhoods and near the world renowned
Mayo Clinic in Rochester.
The deal was worrisome from the start.
Schieffer and the DM&E and S.D. Sen. John Thune had been criticized
for the way they were able to insert a 10-fold increase in loan
authority into the federal transportation bill.
In a series of stories The Free Press broke
in December of 2005, several members of the Minnesota congressional
delegation knew nothing about the loan provision that favored
DM&E’s project and that would send coal trains rumbling through
southern Minnesota.
The public scrutiny of the project
energized opposition groups like the Rochester Coalition and prompted
Minnesota’s congressional delegation to push for answers and pressure
the agencies to scrutinize the deal. Opponents also cried foul over the
influence of Thune, who DM&E paid $220,000 as a lobbyist before he
became a Senator. That kind of reverse influence drew criticism and
scrutiny from newspapers like the New York Times and Publisher Steve
Forbes of Forbes magazine.
The lessons seem twofold: When the public
demands its public agencies do their job, the pressure is on for them
to do it; and no amount of political influence or deal making can
change that.
Still, the whole issue did rely on the kind
of political pressure that comes from within, instead of public
scrutiny through hearings and reviews that should take place.
Democrats Rep. Tim Walz and Sen. Amy
Klobuchar say they will push forward with legislation they were
planning that would require more public scrutiny of federally-backed
loans over $1 billion. That’s a good step toward making sure the
public’s bank has the right auditors.
Emphasis added. The consensus of multiple editorial boards is clear--our readers should push their representatives and senators to support the oversight legislation that Walz, Coleman, and Klobuchar introduced in the House and Senate.
Free Press staff writer Dan Linehan looks at local reception of the local denial in the news article Mixed reaction to DM&E loan decision.
New Ulm Journal: Rieke blames Mayo, Rochester for denial of DM & E loan
The Free Press news article quoted Randy Rieke, manager of the Hanska Farmers' Co-op. His reaction is the focus of the Journal's article Rieke blames Mayo, Rochester for denial of DM&E loan:
. . .Rieke said the federal decision disappointed him.
“I’m no different than the railroad. We’re very disappointed with the avenue it went and the politics involved,” said Rieke.
Also
the Minnesota chairman of GOTRAC, a coalition of communities,
agriculture and economic development organizations that support the
DM&E upgrade, Rieke said it was sad that one community (Rochester)
could affect the opportunity for many times more people to help control
some of their future prices.
“Rochester took that away from
them,” Rieke said. “Consumers of coal and agricultural commodities in
the Upper Midwest and East Coast will suffer from this decision.” . . .
Read the whole thing at the Journal. While it may be difficult for editorial writers at the PiPress to have any sympathy for Rieke, the role of co-ops in southern Minnesota's economy is what has prompted Walz, Coleman and Klobuchar's statements about the need for rail in the First, though not unconditional support for massive loans.
Today's Journal editorial, DM&E’s polarizing project conundrum, concludes:
It may be time for the railroad to retrench, cut back the scope of its
project, or seek ways to win over its opponents, since it couldn’t run
over them.
Worthington Daily News: A victory for common sense
The title of Worthington Daily News' editorial yesterday sums up what some have been thinking: A victory for common sense. The lead:
A proposal to lend a staggering $2.3 billion to the Dakota, Minnesota
and Eastern Railroad was derailed Monday by the Federal Railroad
Administration, an illustration that common sense does sometimes
prevail in Washington. . . .
Read rest at the Globe.
Rochester Post Bulletin: DM&E news surprised everyone
The Post Bulletin's Jeff Pieters look at the element of surprise in Monday's announcement:
For nine years, every time there was significant news regarding the
Dakota, Minnesota & Eastern Railroad, it was attended with all the
pomp or gravity Rochester officials could muster.
There were press conferences in airport hangars, public rallies in
the Peace Plaza, and executive-style briefings in the rarefied air atop
Mayo Clinic's downtown high-rises.
But when the end came -- assuming Monday's announcement is the end -- it caught local leaders unaware.
Find out their surprise in Pieters' article DM&E news surprised everyone. Details on how Walz arranged the first press conference:
There was little advance warning of the news from Washington. All
was quiet until around 3:30 p.m., when Rep. Tim Walz, D-Mankato,
announced the news in a press conference at his Rochester headquarters.
The news of the DM&E loan rejection was first given to members
of Congress as a courtesy before the Department of Transportation made
an official announcement, congressional aides said Tuesday.
Walz and Minnesota Sens. Norm Coleman, a Republican, and Amy
Klobuchar, a Democrat, heard the news in personal phone calls from
Transportation Secretary Mary Peters. The secretary's staff earlier had
asked the lawmakers to make themselves available later in the day for
calls from Peters.
Meredith Salsbery, spokeswoman for Walz, said the congressman went
ahead with his own announcement as soon as a news conference could be
arranged. He was already in Rochester.
For their part, Klobuchar and Coleman quickly arranged a telephone press conference.
There's a wonderful Ed Fischer cartoon on the Op-ed page. The Post Bulletin also provides Answers to your DM & E questions and a round-up of press reaction in South Dakota. We are quite thankful for the latter, since our own digest is getting long, and it's the perfect segue for the next item.
Sky Blue Waters: For corn growers, DM & E seems to be the end of the line
This isn't a district blog, but Tom Elko at Sky Blue Waters takes a good look at the South Dakota Corn Growers' public keening over the death of the federal loan for DM & E anf gives a thumbs down forthe melodramatic performance in For corn growers, DM&E seems to be the end of the line:
South Dakota Corn Growers Association Executive Director Lisa Richardson was quoted by agriculture publication, Brownfield, as saying of the loan denial, “disappointing is the understatement.”
Richardson continued, “we all lost money yesterday.”
With a bushel of corn reaching record highs above $4 and shooting
for $5, Richardson may not want to talk like that around a livestock or
poultry farmer.
I can’t speak for Sen. Thune, a former DM&E lobbyist, but most
of Minnesota’s Congressional delegation has called for improved rail
systems to accommodate the burgeoning ethanol industry, including the
chair of the House Transportation Committee, Rep. Oberstar.
The Star Tribune quotes Rep. Tim Walz as stating he would even support DM&E expansion if they reworked their plan and their focus.
“We need expanded rail travel, whether that’s a
coal-based railroad or not, I’m not sure. But I can guarantee that we
need an agricultural railroad,” Walz, D-Minn., said Tuesday. “I said if
they change their focus, if they came about this thing a little
differently, they would sure find an ally with me.”
While it may be true that “we all lost money yesterday,” DM&E
lost out the most, and I can guarantee that they are not going to
rollover and die away. The Corn Growers Associations are going to have
to work with a willing Congress to find a financially sound way to
improve our transportation systems, rather than relying on a small
railroad to get a big handout at the taxpayers' expense. . . .
But the DM & E loan denial isn't the only news today in the district.
Chatfield News: Land Stewardship Project shares
Farm Bill directives with Tim Walz
Another small-town weekly reports on Walz's visit to Lewiston to hear about ag policy from farmers working with the Land Stewardship Project:
U.S. Rep. Tim Walz stopped in Lewiston for an hour Feb. 19 to listen to pleas for changes in national agri-culture policy.
The
Land Stewardship Project (LSP), used its office on Main Street in
Lewiston to host farmers, consumers and other parties interested in
stating farming needs to the congressman.
The group's primary
concern was the 2007 Farm Bill, which they hope will go far beyond the
scope of what they felt was an underfunded 2002 Farm Bill. Walz serves
on the Agriculture Committee and showed support for some of the LSP
requests.
Mostly, Walz simply listened to those asking, who
themselves were believers in sustainable agriculture. Not just
believers, many were farmers supporting themselves and their families
using the techniques they profess.
Present were graduates of
LSP's Beginning Farmer program, both buyers and sellers in food coops,
a conservation representative, organic farmers, and dairy farmers with
grass-fed cows. One person was a rural resident living downstream from
farmers hoping for conservation practices being used by those upstream
from him.
Of the 40-some filling the small room, at least
two-thirds were farmers. One, who drove from St. Paul to attend, was a
consumer wanting healthy foods to purchase.
In a well-planned
agenda with chosen spokespersons, LSP carefully out-lined its desires
for the new 2007 Farm Bill. Group members had only an hour with the
congressman and they made every minute count for what they felt was
important.
Learn more about the LSP agenda by reading the whole article.
Pipestone County Star: Walz, Klobuchar discuss Farm Bill
At the other end of the district, the Pipestone County Star reports on last week's listening session with Walz and Klobuchar. A sample:
. . .The pair heard from a variety of groups and individuals interested in
the outcome of this piece of legislation, including Tim Dritz of
Hendricks, a representative of the Minnesota Corn Growers Association;
Aaron Kuehl, representing Pheasants Forever and discussing CRP land;
and Ian Cunningham of Pipestone, representing the Pipestone Soil and
Water Conservation District. He referred to the “woeful under funding
of the CRP program.”
Walz explained, “The 2002 Farm Bill was well liked not because it was
perfect, but because it was an improvement over the one before it. I
believe that the Farm Bill is a good investment for taxpayer monies,
and I am concerned that they may possibly underfund it this year.”
“If we took half the money we’re spending in the Persian Gulf and put
it in energy and biofuels, we wouldn’t have a problem in the Persian
Gulf,” said Dan Juhl of Next Generation Power Systems in Pipestone, who
also testified about the need for strong renewable fuels legislation,
like C-bed, to be included in the farm bill.
Walz agreed, saying, “It’s time to have the discussion about the cost
of the ongoing wars in Iraq and Afghanistan, with spending near $682
billion on defense and another $230 billion to fund the war, and yet
they are talking about underfunding the Farm Bill, one of the things
that the government has done that gives a pretty good rate of return.”
“The bottom line on all of this,” Walz said, “is that this is just the
beginning of a process that won’t be completed until some time closer
to September, but it needs to be done right, and we should not go at
this Farm Bill trying to become penny wise and pound foolish in the
long run.”
Cottonwood County Citizen editorial: Young Farmers
The Windom paper concurs with reports that we're hearing about statements in listening sessions across the district. The editorial begins:
Without a
doubt, U.S. Rep. Tim Walz left Wednesday's Farm Bill meeting in
Worthington with three words ringing in his ears: "Help young farmers."
That
message was delivered loud and clear by multiple farmers and business
people attending the session. It did not seem to matter what farm
group, or commodity group they were representing, all seemed to spend
at least a couple of minutes stressing the need to make it easier for
the next generation to enter production agriculture.
"It is
difficult for people to get actively involved in farming," Chad
Cummings of Brewster said at last week's Farm Bill hearing in
Worthington. "Kids are moving away because they can't get into farming
. . . We need help from you (Tim Walz) and bipartisan support to get
people working here and living here."
It concludes, to our hardy agreement:
As
strong ideas are discussed for the Farm Bill, Congress must still
wrestle with the definition of a beginning farmer. In Iowa, a beginning
farmer is defined as one with less than $300,000 in net worth. That
number was recently raised from $100,000 to $200,000 in Nebraska.
In
the coming months the Farm Bill will remain in the spotlight. Lawmakers
will continue to ask for input as to how to make it better.
We
urge our leaders, such as Tim Walz, Norm Coleman and Amy Klobuchar to
find ways to help young people get started in farming. They are the
lifeblood of rural America.
The Citizen reports on the listening sessions in Walz gets region's input on Farm Bill:
There was no shortage of interest in farm-related issues at Congressman Tim Walz's Farm Bill meeting in Worthington last week.
The
newly-elected representative from Mankato heard testimony that lasted
for more than an hour, almost nonstop. Producer after producer stepped
to the microphone.
Find out what they said by reading the whole article at the Citizen.
The Hill: Business and Labor square off on billsThe Hill looks at Thursday's likely passage of the Employee Free Choice Act in the House and the more heated Senate battle to follow. The article talks of U.S. Chamber of Commerce ad buys in some areas, but we know of none so far in the First.
Mankato Free Press LTE: Congressman Tim Walz's vote demonstrated Soldier's Creed
Another reader responds to a Walter Gates' LTE in the Free Press:
I wish I could just ignore this month’s regurgitation
from Wally Gates. I can’t; his attack on Congressman Tim Walz in Your
Views Feb. 21 was too vile. Walz, the highest-ranking enlisted soldier
to serve in Congress, certainly keeps the needs of service men and
women in the forefront. His deep concern for the welfare of the common
soldier informed his vote in support of a resolution which simply says:
“Congress and the American people will continue to support and protect
the members of the United States Armed Forces who are serving or who
have served bravely and honorably in Iraq. “Congress disapproves of the
decision of President George W. Bush announced on January 10, 2007, to
deploy more than 20,000 additional United States combat troops to
Iraq.” Walz’s vote demonstrates a part of the Soldier’s Creed that
Gates failed to cite in his venomous letter, “I am a guardian of
freedom and the American way of life.”
That’s what it’s about. I am grateful that Walz represents us and our values in Congress.
Vanda Manahan
Mankato
Caledonia Argus: All about owls
We love to go owling, since
we can do a barred owl call good enough to convince them to pay us a
visit. This weekend, the Houston Nature Center will hold its Festival
of Owls, a fundraiser for the center. Read more about it at the Caledonia Argus and view the Festival of Owls schedule directly.
More about the Festival of Owls in the Tri-County Record in Rushford and Festival of Owls will feature Alice’s first flight in the Winona Daily News
Readers who venture out for the owling are advised to put on their long johns and mukluks.
Owatonna People's Press: Hollywood values in Owatonna
Sharon Stone is behind a charity described in the article B.P. native brings Hollywood charity home.
Perhaps Stone gained an appreciation for warm clothes while shooting Basic Instinct. We don't picture her owling.