Zac Schultz:

Now to agriculture news out of the Capitol. A bipartisan package of bills has been introduced aiming to help family farmers of all ages, including reducing student loan debt for new farmers and helping older farmers plan for the next generation to take over. One of the cosponsors of one of the bills is Republican Senator Patrick Testin, who joins us now from Stevens Point. Thanks for your time today.

Patrick Testin:

Great to be on.

Zac Schultz:

What’s difference about handing down the family farm than in the past and how will this bill help that?

Patrick Testin:

Well, farm succession, it’s a really tough discussion, and currently right now when you take a look at the average age of our farmers, it’s approaching around 56, 57 years old. We don’t have that next generation taking up the mantel to take over that family farm. As a result of that, we’ve seen a record number of bankruptcies of our small family farms. We certainly don’t want those to disappear in rural Wisconsin. They have served as a backbone in our state’s economy since the founding of our state. We want to be able to make sure our farmers have the ability to start those conversations. And we think the Farm Succession Bill is going to do just that so we can ensure small family farms remain a staple in our rural communities.

Zac Schultz:

In the past, in older generations it was usually the oldest son or one of the sons would take over the farm and work on it and eventually inherit and a lot of the other children might be off on their own. Nowadays it seems like the parents want to split it up evenly and that often causes issues with one child not being able to afford to buy out the rest. Will this help address that?

Patrick Testin:

We hope so. As you just mentioned, today’s agricultural economy, I mean, it is really big business. And the amount of capitol that you to even operate a farm, it’s intensive. I think that’s one of the main reasons why you’re seeing less and less people take up the issue of farming and taking over the family farm just because it’s rigorous work. We are in a five-year low farm economy. We have low commodity prices. With the trade war going on, hopefully we can get new trade deals put in place but in the meantime, we need to make sure there are resources available for that succession. That when farmers are nearing the end of their career and they’re going to hang up their boots, that when they sit down, have these discussions, it’s not so difficult. This is really what this bill aims to do is start that process, lay out a plan and ensure that when they hand down the farm to either a family member or someone else, that it’s a smooth transition.

Zac Schultz:

You mentioned the trade war. How have Donald Trump’s agriculture tariffs affected farmers in your district?

Patrick Testin:

Yeah, I mean I’ve had a lot of conversations with farmers throughout the 24 Senate district. Some of them are feeling the pinch, there’s no question about it. But I think many of them are trying to give him the benefit of the doubt. They want free trade. They want fair trade. And hopefully they’re optimistic. Many of them are holding out that we can get new deals put in place for the USMC and new trade deal with China that hopefully address some of these issues and ensure that it’s equitable across the board.

Zac Schultz:

Do you support this path of introducing tariffs to force this issue?

Patrick Testin:

Well, really, I mean, it’s a — for me, I’m a free trade guy, but this is one of those issues where I think for years countries like China have taken advantage of the U.S. And so in this particular instance, I’m trying to give the president the benefit of the doubt to go to the negotiating table, hopefully have the Chinese government come to the table. And hopefully we can come to an agreement on some new deals that are going to be in the best interest of not only Wisconsin, but the U.S. as well as China.

Zac Schultz:

Now, other bills in this package, include a proposal to help student loan debt for new farmers. Do you support that bill? Is there really student loan debt that’s preventing farmers from getting into this industry?

Patrick Testin:

Well, student loan debt’s a big issue. I just read an article yesterday that I believe student loan debt here in the state is pushing around $23 billion. When you take a look at just the simple cost to get into agriculture, when you take a look that a harvester or combiner can cost upwards of $300,000, $400,000, $500,000. That is a significant amount of cash. So this bill is going to help alleviate some of the hurdles of entry into farming. It’s certainly worth having that conversation and see if there’s going to be enough support for it in the legislature.

Zac Schultz:

There’s been a push for looking at student loan debt for all borrowers, not just agriculture. Would you look at the entire student loan pack industry?

Patrick Testin:

It’s really tough because a lot of this is now dictated by the federal government. But if there were ways that we can try and refinance loans, I’m certainly open to that conversation. The tricky part is is that student loan debt, it’s a risky business because when you’re 18, 19 years old, you don’t have a long live credit history. And for financial institutions, that’s a huge risk. If we could find a proposal that if there’s been a fiscally responsible borrower who has had a strong credit history, maybe they should be able to refinance their student loan debt and pursue options. I know there’s been discussions that we should create an authority here within the state of Wisconsin, but the tradeoff is is that if we were to go to a state option, borrowers would have to look at what that would mean if they took that option because it could mean your lose your income-based repayment plans and other plans provided through the U.S. Department of Education.

Zac Schultz:

Senator Testin, thank you for your time today.

Patrick Testin:

Thank you.