Indiana Senate supports stronger corn checkoff

The Indiana Senate approved a new corn checkoff proposal today by a 40-6 vote. The legislation now moves to the Indiana House of Representatives for consideration.

The Corn Checkoff Bill, Senate Bill 158, sponsored by Senator Beverly Gard, creates a new corn checkoff program that allows Indiana farmers to invest in research, promotion and international marketing efforts that can strengthen Indiana's corn industry.

"Indiana's corn growers are appreciative of the Senate's leadership in moving a new, corn checkoff program forward," said Matt Gibson, president of the Indiana Corn Growers Association and a Newton County farmer. "We've seen exciting growth in corn demand because of today's ethanol boom - but we cannot take this growth for granted. New challenges lie ahead in managing the byproducts of ethanol production, maintaining feed availability for our state's livestock industry, and in promoting greater ethanol utilization. Indiana corn producers need to be investing in our future and this program is a step in the right direction. We are grateful for the leadership of Sen. Gard and the Senate Economic Development and Technology Committee in moving this program forward."

Senate Bill 158 makes several changes to the existing corn checkoff program. First, the bill provides for an automatic deduction of the checkoff when corn is sold. Farmers not wanting to participate in the checkoff program would have up to 180 days to file for a complete or partial refund of their checkoff. In addition, there will be a referendum, beginning August 1, 2011, to allow corn producers to vote on continuing the checkoff program. The bill states that a referendum will be held every five years thereafter.

The farmer funds invested in the program would be managed by the Indiana Corn Marketing Council (ICMC), an elected farmer board, first established in 2001. Senate Bill 158 expands the Council from 10 to 15 elected farmer members.

Dean Eppley, current president of the ICMC, said "Corn checkoff programs in other states have been responsible for the growth and development of ethanol, the creation of corn starch plastics, and research into improved corn production methods. Indiana has benefited from these investments. With the Senate's vote today, we now can build a stronger future for Indiana farmers."

S.B. 158 now goes to the House of Representatives where the ICGA is working with Representative Phil Pflum (D-Milton) in seeking a hearing for the bill before the House Agriculture Committee. The ICGA is encouraging its members to ask their Representatives to support the legislation.

The current corn checkoff program, first passed in 2001, created a voluntary sign-up process that has proven cumbersome over the past six years. As a result, the program collects approximately $40,000 annually to fund market development work for Indiana corn farmers. The program proposed in S.B. 158 mirrors existing checkoff programs in Illinois, Ohio, Iowa, Minnesota, and Kentucky.