Texas Farm Bureau policy on the issue is clear—"We oppose any
change in the original Home Equity Lending provisions that would weaken the protections
and safeguards in the law adopted by the state." We were interested in the hearing to
see if there is support to open-up or loosen the provisions so hotly debated in 1997,
particularly as those protections pertain to agriculture.
The hearing featured some interesting findings from two studies
conducted late last year.
The studies involved questions to both Texas consumers and to Texas
lenders. The good news is that neither group is clamoring to change the current home
equity law.
It’s estimated that 77 percent of Texans are aware of the new law,
but most were not clear of the benefits of the home-equity loan, as promoted by lenders.
From the study, it is estimated that 13.8 percent have investigated, 10.4 percent have
applied, and 8.9 percent of Texans have actually obtained a home-equity loan.
Importantly, only 0.7 percent of the consumers surveyed felt the
"agricultural restriction" on home equity loans should be removed.
As you would suspect, the survey of lenders generated somewhat
different results.
Ninety-one financial institutions as authorized by the Texas Finance
Commission were interviewed. Of those lenders, 13 percent said the "agricultural
restriction" should be removed. The survey’s author said all of the respondents
indicating this preference were rural lenders.
Chairman Averitt reminded the panel that any proposed change in the
home equity law, even the removal of a comma in the statute, must be made through a
constitutional amendment. Therefore, he said, only the most pressing change, if any, will
be considered.
Based on our impressions from the committee hearing, it appears there
is not much interest among House leaders to make a change.
•••
Texas Farm Bureau offered its ideas to the Governor’s Task Force
on Conservation at a hearing on April 12 in Austin. Our input was well received.
TFB’s testimony was five minutes in length, as required, but we answered 15 minutes
of questions afterwards.
Some of the recommendations that drew particular interest from the Task
Force included maintaining the current tax treatment of agricultural land, eliminating the
state inheritance tax, and repealing the federal estate tax. These are all tools that
discourage land and habitat fragmentation.
The Task Force also embraced our support for incentive-based recovery programs for
endangered species. In particular, Task Force members echoed the success of the
brown-headed cowbird trapping program in the Hill Country, whereby nesting success rates
of the endangered black-capped vireo are improved with the removal of the parasitic
cowbirds. Cooperation and the protection of private property rights must be maintained at
levels if such programs are to be successful. The Task Force agreed.
TFB asked the Task Force to
consider the appropriateness of Texas Parks & Wildlife Department’s (TP&WD)
current Public Dove Hunting Program. TFB policy recommends that TP&WD be prohibited
from leasing land for sublease for hunting or other activities. Under the Public Dove
Hunting Program, tracts of land near metropolitan areas are leased by TP&WD and
season-long access granted to hunters who purchase a $40 permit. Private landowners who
lease land for dove hunting feel it is unfair that they must compete with a
state-sponsored program that offers hunts well below market rates.
We outlined the "Quail Initiative" that is being developed
for consideration by the next Legislature. The proposed bobwhite and blue quail recovery
plan involves research, education, and habitat restoration through cost-share. If current
population declines continue in Texas, the bobwhite quail will be an endangered species in
10 years.
Mississippi, Florida, North Carolina, Arkansas, and most recently,
Georgia, have all answered the call of the bobwhite by passing state-funded recovery
plans. We feel it is now Texas’ turn.
Task Force members reacted favorably to the proposal and applauded TFB
and other interested commodity and conservation groups for working on the plan.
The Governor’s Task Force on Conservation will meet next on May 19
in Austin.
