Farmweek january 12 2015

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Illinois government leaders face a seemingly endless number of budget challenges. page 3

Tired of the cold? Just wait. State climatologist Jim Angel doesn’t expect a repeat of winter 2014. page 6

Lower grain prices could affect farmers’ decisions regarding treatment of crop pests and diseases. page 7

Ag groups: End trade embargo with Cuba Monday, January 12, 2015

BY DEANA STROISCH FarmWeek

A growing coalition representing about 30 agricultural groups and businesses called on Congress last week to put an end to the trade embargo with Cuba. The U.S. Agricultural Coalition for Cuba (USACC), which includes American Farm Bureau Federation, Illinois Farm Bureau and Illinois Soybean Growers (ISG), publicly announced the group’s formation during a press conference

Two sections Volume 43, No. 2

in Washington, D.C. “Fifty-four years of unilateral sanctions is an experiment that has gone on far too long,” said Devry Boughner Vorwerk, chairman of the USACC. “It is a failed policy, and it is time that we offer our two countries a better option.” Boughner Vorwerk and Paul Johnson, vice chairman of the coalition and executive director of the Illinois Cuba Working Group, said the group will work with Congress to help develop new policies.

“Our message is that U.S. strength and Cuban sovereignty is more powerful than a U.S.-Cuban embargo,” Johnson said. Illinois Farm Bureau policy supports “resumption of normal trading relations with Cuba,” including elimination of restrictions on U.S. citizens traveling to Cuba and simplifications of licensing and shipping requirements for sales to Cuba. About 20 farmers and Illinois Farm Bureau staff visited Cuba in 2012.

“If we’re going to see any movement on ending the embargo and opening up this nearby market to our products and ideals, ag is going to have to show up,” said Adam Nielsen, IFB’s director of national legislation and policy development. “The creation of USACC demonstrates there’s strong farmer and industry support for turning the page on Cuba.” U.S. Agricultural Secretary Tom Vilsack described the policy changes announced by

President Barack Obama as “significant.” “He has done what he can do to address some of the barriers that exist to expanded agricultural exports in Cuba. But there are still legislative hurdles to cross,” Vilsack said. “The president and this administration look forward to engaging with Congress in an honest and serious debate about what we can do to produce and promote positive

State funding remains Farm Bureau’s top legislative priority BY KAY SHIPMAN FarmWeek

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The Illinois Farm Bureau board, in setting the state legislative priorities, made support for core agricultural program funding among the top priorities. The feeling that the state’s financial crisis remains a central focus at the Capitol was reinforced by Governor-elect Bruce Rauner when he addressed IFB leaders and warned about the state’s deep financial problems and difficult times ahead. IFB will seek passage of a state budget containing necessary funding for key ag programs and existing services that protect consumers, landowners and farmers, the IFB board decided in December. “Illinois agriculture will once again be faced with a proposed state budget in which tough decisions will have to be made on funding to state programs,”

said Kevin Semlow, IFB director of state legislation. Semlow noted Illinois Department of Agriculture (IDOA) key programs include meat and poultry inspections, oversight of grain warehouses and dealers, and services regulating weights and measures, pesticide use and animal health. Other important IDOA programs directly support production agriculture, Soil and Water Conservation Districts, the University of Illinois Extension and county fairs. On related fiscal matters, another IFB priority seeks to maintain the sales tax incentives for agricultural goods and services, and to ensure business-tobusiness transactions are not taxed as part of state sales tax reform. “The current sales tax incentives on goods used for production agriculture must remain in place for the health and viability of the agricultural economy,” Semlow said. During the IFB annual meeting, Rauner said the state needs Illinois farmers to be competitive, and “our policy will reflect what other states do.” The state grants farmers several sales tax incentives on goods, such as seed, feed, fertilizer, ag crop treatments and equipment for raising a crop. “These incentives originally were granted based on the tax policy that crops and livestock are part of the production process for food, which will be taxed at the final retail sale,” Semlow explained. If enlarging the state tax base is considered to include an increased list of

See Cuba, page 5

Len Corzine, at podium, a member of Gov. Bruce Rauner’s transition team, shares ideas with ag leaders attending last week’s Illinois Agricultural Legislative Roundtable. Transition team member Jeff Beasley, center, a Williamson County farmer, and Illinois Farm Bureau Vice President David Erickson helped facilitate discussion. (Photo by Ken Kashian)

services, IFB will seek the exclusion of all business-to-business service sales from the sales tax. “This approach will keep the sales tax on services from becoming a pyramiding tax structure, similar to a gross receipts tax with each transaction taxed rather than the final transaction with the customer,” Semlow said. Other IFB state legislative priorities include: • Legislation requiring any decision to permanently post a road at a reduced weight limit or to permanently close a road entail unanimous approval of the road commissioner, county engineer and a majority of the elected members of the board associated with the road district. • Support legislation that modern-

izes state sales tax incentives for ethanol-blended fuels by expediting the sunset of the 10 percent ethanol blended fuel incentive and creates additional demand for the use of fuels containing higher ethanol blends. • Support legislation to implement changes in federal trucking regulations regarding the Commercial Driver’s License regulations for farmers. • Explore opportunities to amend Illinois Commerce Commission expedited review procedures for new large, complex high-voltage electric service lines to better protect landowners’ rights. • Oppose legislation eliminating the overtime exemption for agricultural employers or implementing an increase in the minimum wage. www.facebook.com/illfarmbureau


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