Tuesday, September 4, 2007

Potato Growers headed to Indiana?

As a member of the legislature, I received a very nice letter from the Potato Growers of Michigan, Inc. It talked of the rebound of the industry from twenty years ago. Today, the crop in Michigan is worth over $500 million when fully marketed.

The letter goes on to express concern over the new 9-bill water restriction package that has been introduced in the House. It suggests that this legislation could be the last straw in the burden of regulation, restriction, and outright prosecution of potato growers.

The writer also pointed out that the glacial geology, suitable soils and water abundance for potato production extends into Indiana.

Government seems to forget that if you over-tax or regulate any given industry, the result can be the industry shuts down or moves. The writer makes clear that his letter is not a threat, only an indication that when making million-dollar decisions that have a 20 year ramifications, tax and regulatory climate makes a big difference.

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