Corn Growers Express Concern
Corn Growers Express Concern Over Governor’s Water Plan
The Nebraska Corn Growers Association (NeCGA) is expressing “grave concerns” over Governor Dave Heineman’s proposal to use corn checkoff dollars to help fund a water resources fund.
Heineman announced his plan to create the new Water Resources Cash Fund in his annual State of the State address. In addition to using state general funds and soliciting federal dollars, Heineman wants to channel a half-cent of the current corn checkoff into the fund, beginning in 2013.
“We agree that water issues will be one of the greatest challenges Nebraskan’s will face in the future, and agriculture certainly needs to be involved in the search for answers,” said Randy Uhrmacher of Juniata, president of NeCGA. “The governor’s proposal to create a Water Resources Cash Fund may start to address part of this problem. However, our organization has grave concerns regarding the proposed funding of this program as presented.”
One concern, Uhrmacher said, is whether responsibility for funding the plan is being fairly distributed. “As proposed, we think corn producers would bear an disproportionate share of the financial burden,” Uhrmacher said. “Secondly, NeCGA has a philosophical concern with a checkoff program being used to create general fund revenue. The creation of Nebraska checkoff
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programs, as clearly outlined by their statutory authority, is to provide resources to invest in market development, research, and education. We believe the proposed use of checkoff in this proposal is in direct conflict with its purpose and sets a precedence which was never intended.”
Heineman also discussed ethanol in his speech. To meet an expected shortfall in the state’s Ethanol Production Incentive Cash Fund, he proposed investing another $15.5 million in general funds, and extending the current ethanol checkoff on corn producers through 2012.
“NeCGA is committed to the obligations made to ethanol producers through the Ethanol Production Incentive Cash Fund,” Uhrmacher said. “The pending shortfall of the fund is still an uncertain number due to variables and the structure of the fund. As this shortfall amount becomes more clear, we look forward to working with the governor and legislature to find a balanced revenue source.”
Uhrmacher said NeCGA appreciates the governor’s efforts to address the challenges facing the state. “His focus on education and economic growth, while still controlling state spending, should be applauded,” said Urhmacher. “We were hoping to see more emphasis placed on direct property tax reduction. However, in theory, the governor’s proposal to fully fund the state aid to education formula should help create property tax relief at the local level. This continues to be an important issue for all farmers and ranchers.”
NeCGA is a grassroots commodity organization that works to enhance the profitability of corn producers. Now in its 35th year of service to its members, NeCGA has over 1,500 dues paying members in Nebraska. NeCGA is affiliated with the National Corn Growers Association, which has more than 31,000 dues paying members nationwide.