« Fox & Friends

South Dakota farmer on potential fallout of halting Dakota Access Pipeline

2021-02-15 | 🔗
Scott Vanderwal, a third generation South Dakota farmer, argues transporting oil on trucks or trains will create 'tremendous competition' for the commodities of farmers and will increase transportation costs.
This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Steve well, the Biden administration will decide the fate of the Dakota Access pipeline will following a court, ordered environmental review. Last week, two hundred activists, tribal leaders and a lot of celebrities from Hollywood, including LEO Decaprio, Cher and others penned a letter urging Joe Biden to shut it down. But agriculture experts say closing the pipeline could cause farmers in the region to take a serious re knew hit some estimate as high as a billion dollars annually, as you can see in that great big graphic right there here to react: third generation, South Dakota Farmer and vice president of the American Farm Bureau Federation, Scott Vander Wall join us today from out there in South Dakota Scott Good Morning to you good morning Steve. So as a farmer- and this is gel- we havent really talked about as a farmer if the oil has to be transported via rail thats that going to do to your prices.
Well, that creates a lot of competition, and I guess what I would say to start off with is this access. Dakota access pipeline is operating already its carrying about forty to fifty percent of the oil. That comes out of the Balken oil kneeled North Dakota down through a refinery already, if they take that and put it on trucks or trains, creates tremendous transportation, competition for commodities, whether soybeans or west. That needs to go to the Pacific Northwest for export or has to go east. That increases the cost that we have for transportation. We have a pretty tough six or seven years now. Things are starting to turn around if we do this increase transportation costs, which shows up in lower prices for our commodities, because there is nobody else to absorb that. That is such a great point. The governor of North Dakota said this regarding shutting counsel the pipeline to pull the plug. Now after the
pipeline has been operating safely for more than three years thats. Your point would severely impair future capital investment in much needed projects at a time when America is in desperate need- and you know Scott when you just think about the politics of it. On the first day in office, Joe Biden signed the executive order getting rid of the Xl Keystone pipeline, and so you know his base loved that they just would like another win so thats why they are going after this one yeah. It is all political and it will be extremeli for anybody to do anything like that. Again, these pipelines are safe, thats. What we need to talk about the best technology we have ever used. The Dakota Access pipeline has no history of any impact on ground water or any resources around it and its been proven to be the best way to transport oil, and when we can do that that way, then it frees up our other transportation methods to all our other commodities. Steve sure,
while it is more efficient and safer to use a pipeline, obviously, rather than rail or truck at the same time, for people who are watching right now and they think well im worried about the environment. Okay, thats one thing, but then less worry about the prices you pay for groceries and you pay for everything else that is shipped via rail, including pretty much everything you do, thats exactly right and it will show up in several ways. There are so many inintended consequences with something like this. Not only is the tire higher pric lower prices for what we get paid, it does show up in higher prices to consumers and other things. There is another thing that probably a lot of people dont think about is the tax money, thats generated property taxes in North Dakota, South Dakota, Iowa and Illinois in this particular case that go to the schools, the hospitals, the emergency services, all those things that have to be paid for through tax money, that those things are picking up and if the Dakota Access
pipeline is shut down, they are going to have to pay for those things. Some other way that will show up in higher property taxes for everybody else or some other method of Taxation Steve. That is such a Gadd point. Scott. Thank you very much for.
Transcript generated on 2021-03-09.