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Emerging Issues for Rural Communities*
Outline
Full presentation is available by clicking here.
The purpose of this session is to consider the future of the agriculture industry and the rural northern plains, to interact and exchange ideas, and thus broaden our understanding of our opportunities. As we contemplate opportunities for economic development for the next 30 years, we can be confident that we, and those who follow us, will encounter an array of challenges. Today, I want to touch on what I believe may be just three of those issues.
1. The Constitutional limit on government regulation of private activities.
- Is the regulation a "proper exercise of police power" or a "taking"?
- "In deciding whether particular governmental action has effected a "taking," the character of the action and nature and extent of the interference with property rights ... are focused upon ..."
- "Regulations that deny the property owner all "economically viable use of his land" constitute one of the discrete categories of regulatory deprivations that require compensation ..."
- "The Supreme Court has, however, identified several factors having particular significance [in deciding whether the regulation has effected a taking], namely, the "economic impact of the regulation on the claimant," "the extent to which the regulation has interfered with distinct investment-backed expectations," and "the character of the governmental action." Application of these ... criteria is required where ... "less than a 'complete elimination of value'" resulted from the regulation ..."
2. Allocation of water resources
- States generally have the authority to allocate water among users; the western states (including North Dakota) generally apply the "doctrine of prior appropriation."
- Exception to states' authority: federal government's "reserved water rights"
- Exception to states' authority:
allocating interstate water among the states
- by applying the doctrine of equitable apportionment,
- by agreement among the states, or
- by Congressional mandate.
- Allocating Missouri River water: which approach will be used?
- Will the allocation be different if the use is "in-stream" rather than "diversionary?"
- How is water allocated among nations?
3. Review of selected economic concepts and the expanding role of contracts in the agriculture industry.
- Characteristics of a competitive industry
- Implications of being in a competitive industry, alternative to being in a competitive industry, strategies to shift a business from a competitive industry
- Resources needed to operate
a business; should the description of resources needed to operate a
business be revised?
- Land, labor, capital, information (production and marketing), and assumption of risk
- Role of contracts in defining a business' level of competition, in managing information, and in managing risk. Skills and energy necessary to establish and maintain contractual relationships.
* Presented at "A Journey of Discovery - An Expedition of Learning" for Farm Credit Services of Grand Forks, Farm Credit Services of Mandan, and Farm Credit Services of North Dakota, September 23, 2004, Minot, North Dakota.
Email David.Saxowsky@ndsu.edu
This material is intended for educational purposes
only. It is not a substitute for competent legal counsel. Seek appropriate
professional advice for answers to your specific questions.
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