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The Ag Lenders Society of California is a non-profit organization whose purpose is to serve as the premier provider of education and information for professionals engaged directly or indirectly in the business of agricultural lending. The Society focuses its efforts on current issues affecting both agriculture and agricultural lending in the state of California, while providing a diversified network for agri-business professionals.

photos courtesy of Roy Martin

Saturday, May 29, 2010

Message from the President

“Close scrutiny will show that most ‘crisis situations’ are
opportunities to either advance or stay where you are.”

Dr. Maxwell Maltz

 

Dr. Maltz was the founder of “Psycho-Cybernetics.”  He was an American plastic surgeon that developed a system of ideas through which, he claimed, one could improve one’s self image and, in turn, lead a more successful and fulfilling life.  He was one of the pioneers of the now current “self-help” movement.  In fact, his 1960 book “Psycho-Cybernetics” is listed as one of the top 50 self help books of all time.

 

Whether a self evaluation can lead to a better life may or may not be true.  But we as part of the agricultural sector of this country face a current “crisis” that could lead to very bad governmental policy.  At this writing, the Gulf Oil spill is over two months old.  Actions are being taken by BP and the Federal Government to stop the spill and to deal with the devastating environmental aftermath.  But historically, such a “crisis” as this lead to an environmental movement and related legislation and regulation which has wonderful goals but in practice, has resulted in another economic crisis: the cost of compliance may outweigh the benefit resulting in very difficult choice for our economic sector.  

 

Some of you will remember that in September 1968 Union Oil Company of California which later became Unocal and is now part of Chevron constructed a drilling platform off the California coast near Santa Barbara.  In January 1969 one of the wells suffered a blow out.  After 10 days the well was plugged.  The oil slick that resulted covered 800 square miles of the coast negatively impacting the fishing industry.  Pictures of the slick were on all of our television screens.  Late in 1969 Congress passed the National Environmental Policy Act (NEPA).  In early 1971 President Nixon created the Environmental Protection Agency.

 

 Two years later in 1973 the Endangered Species Act was passed and signed into law.  This Act is often vilified for its negative effect on Agriculture.  Some of the vilification is certainly deserved.  It does seen that an inordinate amount of pressure is being exerted on California Agriculture to implement these acts.  However, no one can argue that the goals of this legislation is probably good.  But its implementation is not equitable.

 

I remember the Santa Barbara oil spill and the sensational coverage of the effect of the spill in the media. The spill and some temporally related environmental “crises” definitely gave impetus to the environmental legislation.  There was a definite national consciousness raising related to the protection and appreciation of the environment.

 

Once again, a sensational environmental catastrophe will likely result in a reaction.  However, we have the benefit of history to be the filter through which these issues can be evaluated.  One can hope that this “crisis” will be properly rectified and necessary compensation paid. But, we must not lose sight of how some implementation of good ideas can have catastrophic consequences for other sectors of our economy.  Production agriculture cannot be blamed for the Gulf Oil spill; production agriculture should not have to “pay” for the spill by suffering regulations or enforcement that will make it impossible to do business.

 

I can only hope those with influence on future policy will take heed of the history of environmental regulation and “advance” instead of “staying where we are.”

 

Many programs and opportunities are on the Ag Lenders horizon.  ALI is in June and this summer look for announcements and a presentation on High Speed Rail and the Water Bond.  Many other opportunities will be coming up.  Your board is active, excited and dedicated.  Contact me or one of them if you would like to see a program on a particular topic.

 

Thank you for all of your support.


  Rene Lastreto, II

  President