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March 18, 1999
Minge details Washington perspective on oil, ag crisisBy FRITZ BUSCH Journal Staff Writer NEW ULM -- Second District Congressman David Minge, D-Montevideo, said there is "tremendous pressure" on Kuwait and Mexico to increase oil production, in an effort to stop rising gasoline and fuel prices. "Those two countries exist only because of the mercy of the United States," said Minge. "If not for us, Kuwait would be part of Iraq and Mexico's economy would have collapsed." Minge, who outlined the Washington, D.C. perspective on the agricultural crisis Friday at a luncheon at Turner Hall, said he has also discussed increased oil production with Norway. Minge said farm prices have been a problem for decades. "If you don't believe the supply and demand concept works, look what happen to oil?" he said. "The Norwegians, Mexicans and OPEC countries got together and limited supply and prices went up at least 50 percent." Minge said U.S. efforts to limit supply have not been successful because foreign countries like Brazil put hundreds of thousands of new acres into production and are exporting soybeans in a very competitive way. "Our efforts to improve prices have encouraged other countries to jump into our market and eat some of our lunch," Minge said. He sees increased income in China as a tremendous opportunity for American exports. Minge said price supports have meant higher land costs which are fine if producers own their land. He said one of the biggest problems in agriculture is lack of adequate competition. "We have a limited number of sources from which we purchase and a limited number of sources to which we sell," Minge said. "We need a robust economy in all sectors so we can have efficiencies of scale and advantageous pricing." He said a lot of attention is being paid to anti-trust legislation and the Packers and Stockyards Act. Minge said diversified employment opportunities must be available for rural economies to be successful. He said New Ulm is a wonderfully diversified community with national firms but that is not true for much of rural America. Minge received a copper plaque of the Hermann Monument from New Ulm City Councilman Denis Warta, on behalf of New Ulm Mayor Bert Schapekahm, the city council and city staff. Schapekahm remains hospitalized in Rochester. "I would like to thank our honorable congressman for a job that is almost done," he said. "Several years ago, we talked about the treasure New Ulm and the area has in the Hermann Monument. Warta said it was Dave (Minge) that suggested the possibility of giving the monument a higher ranking, nationally. He said of the ways to do that would be to pass a bill in Congress that would establish it as a symbol for all Americans of German descent. The other day, a Congressional hearing committee unanimously passed the bill. It is now awaiting a docket on the House floor, where it has great support, according to Warta.
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