By DAVE BLOWER JR.
Farm World Editor

INDIANAPOLIS, Ind. — By putting pen to paper, Gov. Mitch Daniels created Indiana’s new corn checkoff program.

Adopted by the Indiana General Assembly on April 28, the program will begin collecting a half-cent per bushel of corn at its first point of sale starting July 1. The funds will be invested by the Indiana Corn Marketing Council (ICMC), a farmer-run board that is expanding from 10-17 voting members.

The new law is a landmark for many Indiana corn growers, said Indiana Corn Growers Assoc. President Matt Gibson, who attended the bill-signing ceremony at the Governor’s Office.

“There are people here who have literally spent 25 years on this issue – that’s only five years less than I’ve been alive,” Gibson said. “Being a part of this state corn growers association gives us access to the national organization.”

Farmers who don’t want to participate will be able to file for a refund within 180 days of the sale, and will get their money back within 30 days of receipt of the refund application. During the first two years of the program, first purchasers will be required to provide a refund application to the producer along with the settlement sheet.

The ICMC is also required to make the applications available on its website.

Farmers who wish to receive a refund need to mail or fax their claim form and proof of assessment to the ICMC. First purchasers who buy less than 100,000 bushels of corn per year for their own use as seed or feed are exempted from the checkoff.

“Based off of what will be fed off the farm and those who will opt out, we expect that $3 million will be collected and retained,” Gibson estimated. “Of that, 25 percent must go to consumer education and promotion of E85.”

The ICMC will allocate 25 percent of the checkoff dollars to a state program that provides sales tax credits to consumers using E-85, a provision designed to boost ethanol use in Indiana. Daniels and Indiana Agriculture Director Andy Miller are pleased with the ethanol-focus of the new law.

“We believe there will be no successful overall economic strategy for Indiana that doesn’t provide and strengthen in every way possible the ag sector, in which our small towns and rural areas depend on,” Daniels said.

“This bill will directly strengthen the corn sector of the Indiana ag economy. It will promote the use of E85 ethanol, which is blossoming as a new source of income and jobs and prosperity in our state.”

Miller added that many steps remain in the promotion of ethanol.

“The next major hurdle we have in this ethanol movement is really to have more availability of E85,” Miller said. “This legislation put aside a certain percentage of the corn marketing fund for E85 pump development that we will administer in partnership with our friends in the petroleum industry and gas station owners.”
Gibson said there is more to ethanol than the 85 percent ethanol, 15 percent petroleum blend known as E85.

“A lot of us involved in ethanol have really been hanging our hats on E85,” he explained. “But to be honest, there are a lot of us who would be happy to have 10 percent of every gallon of gas to include ethanol. That alone is huge and would create a huge demand.”

Gibson added that the checkoff will promote more than ethanol. He said that corn growers will need to have patience. “It’ll be October before we will actually get a check, even though funds will start being collected on July 1,” Gibson explained.

“It’ll be January or February before funds are going to be spent on programs, so it will be the middle of next summer before we actually see results coming from our checkoff dollars.”

Daniels also signed the Clean Energy Bill into law. The legislation includes a $20 million production tax credit for cellulosic ethanol. The cellulosic production tax credit combined with the Governor’s 21st Century Fund Cellulosic Ethanol Challenge is intended to position Indiana as a leader in the commercialization of this alternative fuel.

The legislation also ensures that synthetic natural gas production qualifies for Clean Coal Technology tax credits. Other provisions of the Clean Energy III include energy efficiency measures to reduce demand. “Both of these bills are extremely important to one of our major objectives which is uplifting Indiana agriculture, of which we have been unapologetically and unabashedly supportive,” Daniels stated.

“The two bills we have here today will do a lot for the next chapter of greater prosperity in rural Indiana.

“The Clean Energy III Bill will put Indiana at the forefront of encouraging new research and businesses in cellulosic ethanol production, as well as become a leader in Clean Coal technology that can mean so much to the southwest corner of our state.”
Indiana Soybean Alliance Executive Director Chris Novak said it is still part of the Alliance’s strategic plan to merge operations with the corn checkoff organization.

“The partnerships between the corn and soybean organizations is one that has been very successful for the past 18 months,” Novak said.

“We’re really representing the same people. There really isn’t anyone who grows corn without growing soybeans. It’s really a wonderful and rational thing to have them working together on a common agenda.

“At each step of the process, the two boards have met to assess if this is the best arrangement to represent our farmers. I’m sure we’ll continue to assess our strategic plan as we move ahead.”

This farm news was published in the June 13, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.