AN IMPORTANT MESSAGE TO NEBRASKA CORN GROWERS!
The Governor’s budget presented to the special session of the Nebraska Unicameral includes the proposed direct transfer of funds from Nebraska commodity checkoff programs including corn, wheat, sorghum, dry beans, and other farmer-funded, farmer-directed checkoffs into the State’s general fund.
This is YOUR money—money you have chosen to invest for the purpose of research, market development and promotion of your commodity. Money that is managed and invested by a board made up of your fellow farmers.
BOTTOM LINE: This is a matter of principle. Checkoff investments are intended for farmer use. Period.
We urge you to contact your local state senator TODAY to express your concern about the transfer of checkoff funds for use in the general fund.
Nebraska farmers already pay their fair share of property tax, income tax and sales tax. Transferring checkoff dollars to the general fund creates yet another tax on farmers—putting an undue and unfair burden on the backs of farmers. Again.
You cannot afford to have checkoff resources that you have invested in your own product under your own authority and direction diverted for use in the general fund where you will have no say or control over how and where it is spent.
This is about the future of agriculture in Nebraska. This is about farmers being able to use their checkoff money for its intended purpose.
This is about what’s right and fair.
CONTACT YOUR STATE SENATOR TODAY.
TELL YOUR SENATOR THAT THE FARMER-FUNDED CHECKOFFS ARE FARMER INVESTMENTS FOR FARMERS TO USE.
PERIOD.
P.S. We have included some talking points that will be helpful as you talk to your senator and others about this issue. The time to be heard is now. The Legislature is holding appropriation hearings beginning this week!!!
Checkoffs & The Nebraska State Budget Crisis
Talking Points
THE SITUATION
The Governor’s proposed budget includes sweeping money from the cash reserves of the state’s commodity checkoff programs for corn, sorghum, wheat, poultry, dry beans, and other farmer-funded checkoffs in order to help close the gap in the state’s general fund.
WHAT IS A CHECKOFF?
A checkoff is a self-imposed assessment that farmers pay for the specific purpose of investing in research, market development and promotion of the product they grow and market. It’s a self-help program that not only benefits the farmers who pay into it, but the entire state economy through increased agricultural strength. Investment decisions are made by a board comprised of farmers themselves. Checkoff funds are paid by a specific group of people (farmers) for a specific purpose outlined in the legislation that created the checkoff. Checkoffs are 100% self-supporting and general tax funds are not used to support their activities.
PRIMARY TALKING POINTS
• Checkoff funds are farmer-funded for the specific purpose of developing markets and new uses for the product they grow. These are dollars that farmers have chosen to invest in themselves—and in their future.
• Each commodity checkoff is administered by a board made up of Nebraska farmers who are responsible for the stewardship and investment of these farmer-investment funds. Shifting farmer-funded checkoff dollars to the general fund takes this authority away from the hands of the very people who have chosen to make this investment in themselves. They no longer have a say over where that money goes or how it is used.
• Commodity checkoffs do NOT cost the state money. Checkoff dollars come from farmers who have chosen to assess themselves in order to create a means to promote and grow their industry through market development, research and promotion/education. The checkoffs are self-supporting in terms of staff, investments and administrative costs. In other words, checkoffs utilize NO GENERAL FUNDS.
• Like other Nebraskans, farmers already pay income tax, property tax and sales tax. Shifting their checkoff investment to the general fund creates yet another tax on farmers—creating an undue burden on a specific sector of Nebraska taxpayers.
• Bottom Line: This is a matter of principle. The state simply has no right or authority to take what isn’t theirs. Checkoffs are farmer investments for farmer use. Period.
ADDITIONAL TALKING POINTS
• Every checkoff program keeps money on hand in the event of a crop failure or other unforeseen circumstances, so that the checkoffs can continue achieving their mission and purpose even in tough years. It’s the same reasoning that the state has a cash reserve. It just makes good fiscal sense.
• In many cases, checkoff investments are matched by federal programs focused on international exports of Nebraska meat and grain—creating significant leverage, sometimes up to 4 to 1, for Nebraska farmers’ investments in the checkoff.
• A significant percentage of checkoff dollars are used for research—and most of that is invested in projects through the University of Nebraska. Less available money in the checkoffs will lead to reduced research support for the University.
• Legislation that created each checkoff was driven by farmers themselves with the express legislative intent of creating these commodity-specific farmer investment funds and the farmer-directed boards that govern them. Sweeping funds from these purpose-specific, farmer-directed checkoffs to general fund use may create some legal issues.
• There is no question that Nebraska’s strength in agriculture—and farmers’ willingness to invest in their industry through the checkoffs—has helped reduce the impact of the economic recession on our state. Our state leaders have said as much. The proposed acquisition of checkoff funds would seriously impact the ability of Nebraska agriculture to continue investing in itself and continue its unmatched contribution to Nebraska’s economic vitality.
• Checkoff programs in Nebraska have been in place for decades—some for more than 50 years. And even in difficult economic times, checkoffs have always been allowed to operate as they were intended.
• Taking checkoff funds for general fund use would be like a school district grabbing funds from the local Parent-Teacher Association chapter. Or having the federal government take money from AARP to help pay for gaps in Social Security. Or having the federal government tap into the national beef checkoff to pay for the federal deficit.
