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77 Series: Garvin County

                                                 Where are Garvin’s Pecans?

     My name is Bevon Rogers and I am running for U.S. Senate in 2020 as a Democrat. In order to support me in the Primary Election on June 30th, you will have to be a registered Democrat because Oklahoma has closed primaries. I have been closely examining each county in Oklahoma to discover where the weak links are in our state’s economy and I have compiled each economic essay in a project called the 77 Series. You can find the series on my campaign website, www.bevonforsenate.com. My primary focus is on Oklahoma economy, but in Oklahoma’s fourth congressional district, my focus is on building our industry through expansion in our meat processing industry. I am also focusing on industry expansion through enhancing our manufacturing layer within our state economy. In the last essay, I began to hone in on our educational needs when I saw that Noble had to fundraise its educational resources from the community. The way it should be done is through raising the funds from industry; I wish to continue expanding on the beef industrial complex that will exist in McClain County in the city of Newcastle or Purcell, the exact location will come from collaboration with the County and its access to the BNSF Railway.
     I am sure that many of the residents in Garvin County will be employees of the beef industrial complex coming to their northern neighbors. Using technology and efficiency, I want this to be the safest and healthiest beef processing facility in the nation. I believe that we can pay competitive wages as well; when I use the phrase “competitive wages”, I mean wages that compete with professional wages. I do not believe that any of our new industries will be paying Oklahoma’s minimum wage or even close to it. I believe the average income from our new industrial development will be closer to $60,000; this is what is being observed in congressional district two; they have seen a significant increase in manufacturing businesses and new industry: the CMC steel mill in southeastern Oklahoma is a prime example of new enterprise in Oklahoma and we now have access to abundant steel building materials perfect for our industrial expansion projects.
      When I am designing the capital requirements and developing a bond structure to fund the endeavor, I use estimates. I more or less have the idea, but I must pull together a team in order for the state to seize this economic opportunity. I mentioned in my last essay on McClain County that each processed 1,800 heifer yields $8,280 at the current market price. Should we raise one billion dollar for the construction of the processing plant, the packaging processes, and statewide distribution, we would need to reserve $115,000,000 a year for twelve years, and then 100% of the profits would belong to the ranchers and the labor force. Once our investors are paid back in full, in twelve years the state will essentially have a money printing machine to help fund educational resources and other state projects; we all know we could use better roads in our rural communities and projects like this are how we will manage to accomplish infrastructure improvements.
      Before I get into Garvin County industry, mainly their pecans, I want to illustrate the economic impact from the beef complex. First, if each heifer fetches an estimated $8,280 and the complex reserves 60% of this for operational expenses over twelve years for Oklahoma Ranchers, then the split is roughly $5,000 for the beef processor and $3,280 for the rancher; this is just until our Oklahoma Rancher’s Association can pay off the facility, then the split will increase substantially. What these numbers lead to is that we will need to process 23,000 heifers a year to satisfy our bonding requirements and pay our investors. Each time we pay our coupons on time, and each year our escrow account covers our obligations, the better Oklahoma credit will be getting globally. As a state I know we can produce 23,000 full grown heifers each year.
     Once our 23,000 threshold is met, we will structure the facility to pay the escrow account ahead of time so we can make the game fair and not require each ranch to contribute a flat rate until the bonds are paid off. We can also arrange for out of state cattle to share in the burden of paying back the bonds by offering out of state spreads. As soon as our beef processing complex is completely paid off, we will only need to cover our operational expenses and set aside revenue for state projects and basin facility maintenance; the ranchers will own the facility and their cattle will keep the complex running. Should we have a labor force of 1,000 paid an average salary of $60,000, we could operate on $60,000,000 a year, or 12,000 heifers. I hope this sheds some light on how important have a beef processing operation in congressional district four is for our state economy.
      Garvin County will play a role in this development as well; most of the county land is dedicated to ranching. Back in the 1930’s over 1,000 acres were planted with paper shelled pecan trees and I am anxious to travel to Pauls Valley and explore where these trees are concentrated today. There are many things we can do with pecans and extracting their oils is an excellent idea for an export that the Asian Markets demand. Also, pressing oil from the nuts not only adds value through a process, but it also creates a phenomenal food resource for our livestock and we should really look into the 1,000 acre orchard that has had 80 years to develop. There are business coming to Pauls Valley, some light manufacturing is already present, and the rest of congressional district four is on the cusp of industrial expansion.
      The reason why I am promoting industrial expansion so strongly is because I can see that this is what is wrong with our state; this is why we cannot achieve a trade balance and this is why our rural communities are so poor. One day, we had more industry than we could handle, then the next, it disappeared and nothing has come to replace it. We are bringing in more and more businesses, but we need our industry too. We need to be better using our land resources to appropriately seize economic opportunity where Oklahoma industry does not exist; we must realize that a lot of our land is covered in young brush and this did not exist a hundred years ago. Our agriculture acreage has been significantly reduced over time and we need to be proactive in expanding our acreage. As I continue with the 77 Series, I will continue expanding on how we can increase agriculture acreage.


Committee to Elect Bevon Rogers
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