THE ILLINOIS Agricultural Legislative Roundtable during June Dairy Month visited Illinois’ largest dairy to learn of issues facing that industry. ............................................3
THE ILLINOIS SOYBEAN Association is in its second season of offering producer photographs and updates on the soybean crop online at {www.SoyCam.com}. ....7
RUSSIA IS NOT expected to be a major player in the wheat marke t t h i s y e a r a s i t a t t e m p t s t o rebuild domestic stocks after severe drought there last year. ................10
Monday, June 20, 2011
Two sections Volume 39, No. 25
Senate ethanol vote disturbing but irrelevant? BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
In a whirlwind of activity last week, the Senate first defeated and then quickly and decisively cleared the way for a proposal to eliminate current federal ethanol incentives. Senators Tuesday blocked a vote on Sen. Tom Coburn’s (R-Okla.) proposal to eliminate the 45-cent-per-gallon volumetric ethanol excise tax credit (VEETC) and the 54cent-per-gallon ethanol import tariff designed to offset tax credits for foreign biofuels producers. But Coburn, with support from influential Sen. Dianne Feinstein (D-Calif.), rallied colleagues and secured a second successful “cloture” vote (73-27) allowing consideration of his proposal as part of yetto-be-approved Senate small business legislation. The amendment could come to the floor early this week, and the ethanol industry group Growth Energy (GE) is building support for a counterproposal to move from the existing fixed credit to a “variable rate” credit that would fluctuate with oil prices. Sens. Amy Klobuchar (DMinn.) and John Thune (RS.D.) introduced that measure
last Monday (June 13). GE CEO Tom Buis told FarmWeek Friday Thune, Klobuchar, Coburn, and Feinstein were discussing a possible compromise measure “that could actually be put into a piece of legislation that stands a chance of becoming law.” Even if the Senate moves the larger bill in which it is proposed, Buis calls Coburn’s amendment “unconstitutional,” since tax revenue measures must originate in the House. Jessica Bennett, National Corn Growers Association (NCGA) national policy director, said Coburn’s action is “in reality irrelevant,” and Buis suggests “we’ll be OK, ultimately.” “You have to find a bill both the House and the Senate can agree to and the president is willing to sign,” he said. “I think people are far from that.
We’re hoping we get something that’s going to move. Then we can sit down and do this the right way. “I think this was a vote to appease Senators Coburn and Feinstein and all the oil supporters in the Senate who wanted to stop our industry. But it does send a signal that the VEETC is the most controversial thing around biofuels. “The entire ethanol industry has pledged to reform it, but you don’t just pull the rug from under it. You have to do it in a smart way so you don’t cause disruptions in the marketplace.” Bennett reported NCGA has ramped up its “outreach on biofuels” in the House, but admitted VEETC preservation is “a bit of a roll of the dice,” given conservatives’ dual deficit reduction/tax relief push. The House voted last week
HITTING THE LINKS FOR AG LITERACY
A Country Financial agent team shows its putting skills during the IAA Foundation golf outing last week in Pontiac. Golfers left to right are Joe Knuppel, Macomb, and Josh Riekena, Chris Kappes, and Jason Milam, all of Peoria. More than 200 golfers participated in the 15th annual golf outing at the Elks Country Club and the Wolf Creek Golf Club, both in Pontiac. A scramble competition followed by an evening banquet helped raise funds for the Illinois Agriculture in the Classroom programs. (Photo by Cyndi Cook)
FarmWeek on the web: FarmWeekNow.com
to withhold fiscal 2012 funding to help install ethanol “blender pumps” seen as crucial to expanded biofuels/”flex-fuel” vehicle demand, though senators rejected an amendment by Sen. John McCain (R-Ariz.) to eliminate blender pump support. Bennett noted NCGA’s support for a gradual VEETC phasedown or a variable rate credit. The Thune-Klobuchar plan also provides “a pretty hefty incentive for infrastructure development” (calling for 53,000 blender pumps) and offers “the right path forward for reform,” she told FarmWeek. Under the plan, fuel blenders would receive no
ethanol credit when oil prices exceeded $90 a barrel. If oil fell to between $80 and $90 a barrel, they would get a sixcent-per-gallon subsidy to encourage continued biofuels use, and another six cents would be added for each $10 drop. A maximum 30-cent credit would be offered if oil prices fell to $50 per barrel or less. The bill would allocate $1 billion in annual savings from VEETC reform to deficit reduction and $1.5 billion to infrastructure development. Senate Majority Whip Dick Durbin, a Springfield Democrat, and Sen. Mark Kirk, a Highland Park Republican, support the measure.
IDOT restarting audits
Farmers urged to send FMCSA their comments BY KAY SHIPMAN FarmWeek
The wheels on farm truck regulations continue turning on the state and federal levels. The Illinois Department of Transportation (IDOT) is restarting its new entrant audit process, said Kevin Rund, Illinois Farm Bureau senior director of local government. A moratorium had been placed on those audits in response to the current Federal Motor Carrier Safety Administration (FMCSA) review of interpretations of motor carrier safety regulations. Recently, three interpretations that impact farm trucking were challenged by IFB. That prompted the FMCSA’s review. Those interpretations are: interstate vs. intrastate definitions that apply to hauling of farm products within a state’s boundaries, a for-hire designation for farmers with cropshare leases; and applying trucking regulations to implements of husbandry.
“Gathering input from agriculture producers on rules that will impact farmers’ livelihood is the right thing to do,” said U.S. Sen. Dick Durbin, a Springfield Democrat. “I encourage all producers to take advantage of this opportunity to have their voices heard. FMCSA must fully understand the role of every farmer — those who farm their own land as well as cash rent farmers and crop-share farmers,” Durbin added. U.S. Sen. Mark Kirk, a Highland Park Republican, said: “I’m concerned the FMCSA’s new interpretations will have a significant impact on Illinois’ farmers — costing them thousands of dollars to comply with senseless and burdensome new regulations. “Agriculture is the No. l employer in Illinois and a bright spot in our economy,” Kirk continued. “Government agencies like FMCSA must consider the real world implications new regulations will See FMCSA, page 2
Illinois Farm Bureau®on the web: www.ilfb.org