ND Department of Agriculture
Legislative Testimony

Chairman Belter and members of the House Finance & Taxation Committee, I am Commissioner of Agriculture Roger Johnson. I am here today in support of HB 1487, which will provide a tax exemption on farm machinery repair parts through December 31, 2000.

As you know, farmers and ranchers in North Dakota have been experiencing very difficult economic times in recent years. The charts and information on pages 10-13 of the Commission on the Future of Agriculture report entitled, "Building the Future of North Dakota Agriculture," highlight the economic conditions we are facing in agriculture.

Information released yesterday by the 1997 Ag Census also shows that farm production expenses have increased 17% since 1992, while average per farm net cash returns have decreased 37.4 % since 1992 in North Dakota.

Low prices continue to plague virtually every agricultural commodity. HB 1487 will be a useful tool in reducing production expenses and allow producers to increase their net return margins. HB 1487 is consistent with the North Dakota’s agriculture’s vision and mission to "significantly increase net farm income" and create "prosperous family farms."

Chairman Belter and committee members, I urge a do pass on HB 1487.

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