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Department of Agriculture seeks repeal of obsolete programs; cooperatives urge keeping lease‑protection tool
Summary
LB372 would repeal three rarely used Department of Agriculture programs (honey labeling rules, grain certification statutes and the Agricultural Suppliers' Lease Protection Act). The NDA backed repeal of honey and grain provisions but the department recommended removing the lease act from repeal after cooperatives argued it serves as a low‑cost negotiating mechanism.
Senator Dan McKeown introduced LB372 at the request of the Nebraska Department of Agriculture, saying the bill would repeal three Department provisions that the department has never implemented or funded: an agricultural suppliers' lease protection program, honey labeling standards, and a Nebraska origin and premium quality grain certification inspection program.
Sherry Vinton (Director, Nebraska Department of Agriculture) testified that the honey labeling rules and grain certification provisions are obsolete or duplicative: the honey rules were never needed by the NDA because honey is treated as a raw agricultural product and federal agencies provide labeling guidance and grading; grain grade certificates are handled by the USDA Federal Grain Inspection Service (FGIS) whose inspectors are certified to issue those certificates. The department initially identified the Agricultural Suppliers' Lease Protection Act as obsolete but—after conversations with cooperatives—recommended amending LB372 to exclude that act from repeal because it can operate as a negotiating deterrent when disputes arise.
Representatives of Nebraska cooperatives and legal counsel urged the committee not to repeal the lease protection act. Rocky Weber (president and general counsel, Nebraska Cooperative Council) said that although the act has not been formally invoked in two decades, it has been an effective, low‑cost mechanism to prompt reasonableness in lease negotiations and disputes with railroads. Jeremy Wilhelm (CEO, Frontier Cooperative) and Bill Kutilek (attorney, Crosby Guenzel) provided similar accounts, describing infrastructure investments on leased railroad rights‑of‑way and warning that removal of the statutory tool could expose cooperatives to greater risk in disputes.
Senator McKeown waived closing remarks; committee staff reported five letters submitted online and the hearing record was left open for the committee’s consideration. The sponsor and the Department of Agriculture signaled willingness to amend LB372 to exclude the lease protection act from repeal after hearing cooperative concerns.
