Lower crop prices and tax law changes may put the brakes on farm machinery sales for the coming year...................................4
While world meat demand continues to grow, the global food supply and demand situation requires re-alignment...........5
Two IAA Foundation scholarship winners express their thanks as new scholarships are now available...............................13
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Illinois Farm Bureau mission: Improve the economic well-being of agriculture and enrich the quality of farm family life.
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IFB, biofuels producers, lawmakers join RFS2 effort Monday, December 9, 2013
BY MARTIN ROSS FarmWeek
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East Moline Democrat U.S. Rep. Cheri Bustos first encountered Republican South Dakota Rep. Kristi Noem on the field, as members of a congressional women’s softball team. As a result of that friendship, the pair have joined to protest what they deem a foul pitch by the U.S. Environmental Protection Agency (EPA). They’re not the only ones in the game. Illinois Farm Bureau and statewide ethanol/biodiesel interests are rallying opposition to EPA’s proposal to scale back on nationwide biofuels use in 2014. On Nov. 29, EPA kicked off a 60-day public comment period for a proposal to reduce blending mandates under the federal Renewable Fuels Standard (RFS2) to 15.2 billion gallons. That would include 13.01 billion gallons of corn-based conventional ethanol and 2.2 billion gallons of advanced biofuels, and EPA would effectively freeze renewable diesel “renewable volume obligations” at the current 1.28 billion-gallon level for the coming year. Under 2007 energy legislation, Congress called for 18.15 billion gallons of renewable fuels in 2014, including 14.4 billion gallons of conventional ethanol and 3.75 billion gallons of advanced biofuels. In an
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EPA hearing last week, Illinois biofuels producers, including Renewable Energy Group (REG) and Patriot Renewable Fuels, stressed the need to set the 2014 biodiesel target at at least 1.7 billion gallons. At this week’s annual meeting, IFB is circulating a petition asking EPA to adhere to original 2014 RFS2 targets, while urging state district directors to address the topic in regional caucuses and voting delegates to sign petitions prior to Chicago policy debate. IFB will also help county presidents generate data and comments on the impact of EPA’s proposal on farmers and rural communities. After Bustos learned of EPA’s proposal, she contacted fellow House Ag Committee member Noem to co-author a bipartisan letter warning EPA Administrator Gina McCarthy that her agency’s proposal could “destabilize” the renewable fuel industry. The pair argue the move would send the wrong message to investors, threaten rural jobs and slow development of advanced and cellulosic biofuels “that bring higher-level
ethanol and biodiesel blends to consumers.” “This would be harmful to ethanol and the ag industry. This is very hurtful to the rural
community,” Bustos told FarmWeek. “In my 17th District alone, we have three ethanol plants. This is important from a job perspective,
from an economic development perspective. And there are gas price consequences to See RFS2, page 3
THANK YOU FROM THE NELSON FAMILY
“It has been my privilege to serve as your President for the past 10 years. Farm Bureau makes a difference improving farm income and the quality of farm family life. But ultimately, it is the members that make our organization special. I feel blessed to have been able to serve you. On behalf of the Nelson family, thank you for all you do.” Pictured are IFB President Philip Nelson and his wife, Carmen, and their children, from left, Kendall, Kyle and Rachel. (Photo by Cyndi Cook)
Quinn signs pension changes; legal challenge expected BY KAY SHIPMAN FarmWeek
The fate of Illinois’ unfunded public employee pension system likely will move from the governor’s and lawmakers’ hands into those of judges. In a private ceremony Thursday, Gov. Pat Quinn signed pension reform legislation passed days earlier in a special session. Senators passed the measure with a 30-24 vote and three voting present, while the House approved the changes with a 6253 vote and a single present vote. “Illinois is moving forward,” Quinn said. “This is a serious solution to address the most dire fiscal challenge of our time.” He praised legislative leaders, Pension Conference Committee
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members and legislators from both parties who voted for the changes. Illinois is enmeshed in the nation’s largest unfunded public employee pension system with an estimated unfunded liability of $100 billion. The unfunded liability is the debt owed to cover all long-term expenses for retirees and current employees. The legislation changed benefits and funding for four state retirement systems: teachers, universities and community colleges, state employees and General Assembly. The state will save an estimated $160 billion over 30 years, including an estimated $1.3 billion in the first year. During lengthy debate, several legislators noted the pro-
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posed changes face constitutional challenges. The Illinois Constitution states that membership in any pension or retirement system of the state, local government, school or any agency is an enforceable contract, “the benefits of which shall not be diminished or impaired.” “Everyone knows these changes will be tested judicially to see what will be ruled legal and what parts will be ruled unconstitutional,” said Kevin Semlow, Illinois Farm Bureau director of state legislation. “Once the legislation is signed into law, it is expected that it will only be a short period of time before it will be challenged in court.” The largest change that will
generate the most savings is a reduction in annual cost-of-living adjustments on pension benefits from the current 3 percent compounded rate. Several legislators who spoke in support said they anticipated improvement in the state’s credit rating by the major credit-rating agencies. Illinois has the nation’s lowest credit rating. Lower ratings cause the state to pay higher interest rates on borrowed money. In other special session news, the General Assembly didn’t resolve tax incentive proposals for Archer Daniels Midland Co. The Senate passed two measures, while the House adjourned without voting on them.
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