From: Kolfarm [mailto:kolfarm@svtv.com]
Sent: Friday, December 06, 2002 9:45 AM
To: Hadjy, Pandor
Subject: Testimony


Testimony:	David Kolsrud
Rural Development - Energy Forum - Farm Bill - USDA


Under Secretary Dorr

My name is David Kolsrud.  I am a farmer from Southwest Minnesota.  I am also the manager of CORN-er Stone Farmers
Cooperative in Luverne, Minnesota.  

I have worked with many groups with goals of building renewable energy facilities (wind, ethanol, and etc.)  I have
been doing this since 1995.  

These projects, in order to be feasible, need to produce a product (ethanol/electricity) that is affordable to the
consumer.  If they can't do that they shouldn't be built.

There are two things I have learned:

One - People tend to under capitalize projects.

Two - Farmers/producers don't invest at a high enough rate to help themselves out.

Farmers will invest $300,000 in a hog unit or $200,000 in a combine, but they are reluctant to invest any more than
the minimum in a project.

I would hope that these funds could be utilized to help leverage and entice farmers to invest at significantly higher
levels.  

This program needs to get off to a successful start.  If farmers can get dollars out of the energy market place rather
than traditional government payments, then I would expect this program to grow while traditional farm programs can be
reduced.

Wow!  Wouldn't that be ideal?  All the while helping homeland security, rural development, consumers and last but not
least the American Farmer!

If my input could be of any value I would be more than willing to help.  

Thank you
David Kolsrud
Home Phone:  507-755-6205
Office Phone:  507-283-1910
Cell Phone:  507-920-5348           Email: kolfarm@svtv.com