2004 Year in Review

Govenor's war on ag

SPRINGFIELD – Members of the Senate Republican Caucus rallied the troops on March 24 – Ag Legislative Day in Illinois – to defend farmers and agribusinesses in the war Gov. Rod Blagojevich is waging on the state's number one industry.

State Sen. Rick Winkel (R-Champaign) and State Sen. John O. Jones (R-Mt. Vernon) say Blagojevich's plan to tax agriculture inputs – including feed and seed – will further jeopardize the state's economy and threaten the survival of the ag industry in Illinois.

At a State Capitol press conference, Winkel and Jones were flanked by other legislators as they called the agriculture community to action to fight the Governor's plans to increase taxes on agriculture products, gut the Department of Agriculture, eliminate the C-FAR agricultural research program and threaten funding for the horse-racing industry.

"We need petition drives, rallies and resolutions supported by every community, county board and agriculture group in the state to send a strong message that the Governor's war on agriculture will not be tolerated," Jones said. "There is an old adage, ‘Don't bite the hand that feeds you.' The Governor needs to know that agriculture is the driving force of our state's economy – an economy that is still reeling from his tax and fee hikes last year. For a strong economy and for jobs, we must help – not hurt – Illinois' agriculture industry."

Winkel says these new attacks come on the heels of the $2.2 million in fee hikes and tax increases that Blagojevich imposed on agriculture in the current (Fiscal Year 2004) state budget for such things as weights and measures inspection, fertilizer sales and pesticide registration.

"It's not a good idea to try and balance the budget on the back of agriculture. Illinois has a farm-based economy, so anything affecting farmers and agribusiness will have a strong impact on other businesses," Winkel said. "More than 25 percent of all jobs are agriculture-related, whether they are growing crops, raising livestock, conducting research at the University of Illinois, selling commodities at the Chicago Board of Trade or building farm implements at John Deere Corporation in Moline."

The Governor's attacks on agriculture include his plans to:

·Repeal the state's "feed and seed" sales tax exemption for farmers with gross income of more than $1 million. The Illinois Farm Bureau estimates increased costs for corn and soybean farmers of about $7.63 per acre for corn and $4.59 for soybeans. Increased costs will mean livestock producers will pay more per animal – hog producers, as much as $3.37 more per pig; cow/calf operators, $2.74 per head; dairy operators, $91 more per head.

• Cut funding for the Department of Agriculture by 10.7 percent and eliminate more than 100 jobs. The Governor also raids several Ag Funds and transfers this money into other funds, including the General Revenue Fund to pay the state's day-to-day operating costs.

• Transfer the Department of Agriculture's Land and Water Resources division and all Conservation 2000 programs to the Department of Natural Resources. The Department of Agriculture's environmental programs will be transferred to the Environmental Protection Agency.

• Eliminate funding for the C-FAR program, which supports agricultural and food products research grants to the University of Illinois and other public universities as authorized by the Food and Agriculture Research Act.

• Cap or restructure funding in the horse-racing industry, which provides more than 37,000 Illinois jobs and is responsible for more than $1.4 billion in economic activity statewide.

State Sen. Bill Brady (R-Bloomington) says eliminating the "feed and seed" sales tax exemption would be a knockout punch to many farmers.

"Eliminating this exemption would cost farmers millions of dollars. Sales of the products needed to sustain our farms would plummet. Our state would lose sales, business and jobs as buyers would cross state lines to make tax-free purchases," Brady said. "We cannot afford to jeopardize the farm economy in such a manner. Many of our small rural communities have already been hit hard by last year's tax and fee increases."

Assistant Senate Republican Leader Brad Burzynski (R-Sycamore) says Blagojevich is thumbing his nose at the long-held tradition of agriculture in Illinois.

"Agriculture has long been a stronghold of our Illinois communities," Burzynski said. "From our family farms to our agri-industries, agriculture has been an economic force in cities and communities of all sizes. Now more than ever – when our economy in Illinois is at risk – we need to maintain the stability of our largest industry, not put it at risk by increasing taxes and fees."

State Sen. Dale Risinger (R-Peoria) says a free-spending Governor should not threaten the future of agriculture. "We are letting Gov. Blagojevich know in no uncertain terms that we will not support any budget gimmicks that balance the budget on the back of farmers and agribusiness,"

Risinger said. "March 24 is Ag Legislative Day in Illinois and the Capitol is full of students in the FFA and 4-H organizations. Decisions we make in the coming weeks about agriculture will have a big impact of their futures."

by  Editor, theCity1.com
March 29, 2004