Copyright 2002 The Omaha World-Herald Company  
Omaha World Herald (Nebraska)
February 24, 2002, Sunday SUNRISE EDITION
SECTION: NEWS; Pg. 3b;

LENGTH: 356 words

HEADLINE: Harkin touts farm-bill's benefits

BYLINE: By Cliff Brunt

SOURCE: WORLD-HERALD STAFF WRITER

DATELINE: COUNCIL BLUFFS

BODY:
Sen. Tom Harkin, D-Iowa, said Saturday there is much more to the Senate farm bill than aid for farmers.

Harkin, chairman of the Senate Agriculture Committee, spent about an hour at Iowa Western Community College explaining the rural-development part of the bill and asking for feedback.

The provisions are intended to help rural businesses start up and expand, and to help farmers develop new markets.

The bill also contains provisions to help rural areas with community-development projects.

President Bush released a budget this month that trimmed spending for agriculture and rural development while increasing spending for homeland defense, Harkin said.

Despite Bush's budget, Harkin said he doesn't expect the Senate bill to change much before it is merged with the House version of the farm bill.

"I think we're going to get this through," he said. "We have pretty good cross-party support."

The bill in its current form would be particularly good for southwest Iowa, which needs more rural business, he said.

Lack of equity capital, he said, is one of the most significant roadblocks to rural-business development. Harkin said the Senate plan includes provisions that protect investors and reward small businesses.

"You can get young people, maybe in their late 20s and early 30s who want to run a business but want to stay in a rural area to do this," he said. "I think the demand is there."

Harkin said he thinks that there is a place for small, niche businesses in southwest Iowa.

"Starbucks took on Folgers," he said. "With unique marketing and an excellent product, they were able to make it.

"You can take on the big guys. They get sloppy. You can get a piece of the action."

Harkin said the Senate bill also would provide $ 100 million a year for grants to help expand Internet access to rural areas. While communities of up to 20,000 are eligible, priority would be given to towns with fewer than 2,500 residents.

The bill also would help local nonprofit organizations teach business-development skills to people with low-to-moderate incomes.



LOAD-DATE: February 25, 2002