THE ILLINOIS AGRICULTURAL LEGISLATIVE Roundtable discussed concerns about the federal and the state Environmental Protection Agency. .........................4
THIS E15 LABEL has been offered by Illinois Farm Bureau as an alternative to the Federal Trade Commission’s much more inflammatory “CAUTION” label. ...........5
SPINNING WIND turbines increase the airflow near crops, but researchers are up in the air whether plant growth and yields benefit. ....................................13
Monday, January 10, 2011
Two sections Volume 39, No. 2
Congress could bring ceiling down on ag funding BY MARTIN ROSS FarmWeek
At a nearly $1.3 trillion current national deficit, Congress must come up with an average $4,300 per American “in order to get things back into balance,” according to American Farm Bureau Federation economist Bob Young. Farmers Bob Young likely will be asked to ante up their share well before lawmakers devise a new farm bill, Young warned.
The economist noted the U.S. today spends roughly “every dollar we take in” in federal revenues on defense, Medicare, Medicaid, Social Security, and interest on the national debt. Roads and bridges, education, food stamps, farm programs, and all the other government programs demand funding “over and above all the money we take in,” he said. The “deficit commission” proposes to trim $4 trillion from projected deficits through 2020. Roughly $670 billion of commission-targeted reductions ostensibly would come from net debt interest, while a projected $20 billion in
savings would come from cuts in federal procurement — in Young’s view, a dubious legislative prospect given lawmakers’ allegiance to major defense contractors and suppliers. “We’re going to end up needing to talk about raising the national debt level, possibly in February or the first half of March or so,” Young told FarmWeek. “There’s a lot of discussion about what folks are going to demand in order to grant that increase in debt level. “I think we’re going to talk about deficit reduction in 2011, and I think when we do, we’re going to have farm programs on the table for part of
that conversation.” Illinois Farm Bureau National Legislative Director Adam Nielsen noted national debt is rising by $6 billion a day. He cited concerns from new House Speaker John Boehner (R-Ohio) and others that “the creditworthiness of the United States is in jeopardy” without an increase in the debt ceiling. In its Nov. 15 draft report, the White House-authorized National Commission on Fiscal Responsibility and Reform suggested trimming annual commodity/conservation spending $3 billion by 2015. The commission’s final plan hewed closer to $1 billion, tar-
geting direct payments. Beyond direct program hits, Young cited the commission’s focus on eliminating “earmarks” — so-called “pork barrel” spending requested by individual lawmakers and blasted by fiscal conservatives. House and Senate Republicans recently vowed to reject earmarks in the 112th Congress. While he agreed many earmarks are “egregious,” Young noted the Food and Ag Policy Research Institute (FAPRI), which provides key analysis for Congress, remains “the longest-standing ‘earmark’ in the USDA budget,” funded for See Ceiling, page 4
Suite of state tax increases may be coming from session BY KAY SHIPMAN FarmWeek
Periodicals: Time Valued
The Illinois House was expected to vote Sunday on a laundry list of tax increases, program reforms, and property tax relief before the Senate takes up the package this week in the final days of the lame duck session. Constitutional officers and legislators will be sworn in Wednesday. Gov. Pat Quinn, Speaker Michael Madigan, and Senate President John Cullerton
reached a tentative agreement on a tax increase package that would address state funding
FarmWeekNow.com More details of the lame duck General Assembly session are available at FarmWeekNow.com.
problems over the next 14 years, according to Bart Bittner, Illinois Farm Bureau associate director of state legislation. “We’ve been concerned for some time with the magnitude of the state’s fiscal problems and appreciate the fact leadership is looking at solutions,” said IFB President Philip Nelson. “As we monitor the evolving proposals, we’ll look for accountability on any new revenue generated and no new program growth until our fiscal issues are adequately addressed. As part of this equation, it is critical the General Assembly look at improving the business climate in Illinois,” Nelson said. The proposed tax increases would generate an estimated $7.577 billion annually. As of FarmWeek presstime Friday, the proposal included a four-year increase in the personal income tax with a portion of
the revenue designated for the deficit, another portion for property tax relief, and portion to repay a 14-year borrowing plan. After four years, a portion of the tax increase would remain to pay for property tax relief and the borrowing plan. After 14 years, a portion of the tax
increase would remain to continue property tax relief. A corporate income tax increase also is being proposed. The funding package includes a 14-year borrowing plan to generate revenue to pay overdue bills and make current pension payments. A $1 per pack cigarette tax increase is
being proposed with that revenue going toward new education funding. The proposal also includes a three-year moratorium on new programs and reform of Medicaid, moves expected to produce $200 million in savings this fiscal year and additional savings in future years.
TWISTER AFTERMATH
Brothers Steve and Gary Hoke, left to right, stack hay bales they were able to salvage from the remains of a century-old, three-story barn in the background. The barn was destroyed by a New Year’s Eve day tornado that struck the Hoke’s farm near Petersburg in Menard County. There were about 800 bales in the barn at the time of the storm. More photos and a story appear on page 7. (Photo by Ken Kashian).
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Illinois Farm Bureau®on the web: www.ilfb.org