By LINDA McGURK
Indiana Correspondent

INDIANAPOLIS, Ind. — Beginning July 1, Indiana will have a new corn checkoff program.

The Indiana General Assembly passed Senate Bill 250 on April 28, mandating that 0.5 cent per bushel of corn will be automatically deducted at the first point of sale. 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.

The Senate voted 87-6 and the House of Representatives voted 38-10 to approve the final version of the corn checkoff bill. Farm organizations across Indiana were quick to hail the decision.

“This is a major step forward for Indiana corn producers,” said Matt Gibson, president of Indiana Corn Growers Assoc. (ICGA).

“Everyone is excited by today’s high corn prices, but we must make long-term investments today if we hope to maintain these markets well into the future. The new corn checkoff program approved by the legislature will allow us to do that - while preserving the best traditions of a voluntary program, run by farmers for farmers.”

Don Villwock, president of the Indiana Farm Bureau, was equally pleased.

“It is important that corn producers have the opportunity to contribute to the future growth and development of markets for their product,” he said. “Farm Bureau and many of our individual members are extremely pleased that the legislature has approved this program.”

The original checkoff bill, introduced by Sen. Beverly Gard (R-Greenfield), called for a referendum on the program after three years, but this bill was later killed in the House Rules Committee.

The final bill, crafted by Rep. F. Dale Grubb (D-Covington), instead states that the corn checkoff will be automatically repealed if at least 25 percent of the assessments are refunded during the marketing year beginning Oct. 1, 2009, giving farmers a chance to “vote” with their refunds.

If the program continues after this date, it will terminate if refunds exceed 25 percent of the total assessments for two consecutive years.

“It’s such a minor amount per se that is deducted, that I think the philosophy is that (the refunds) won’t be used by that many. It’s like those coupons and rebates you get in the mail. I don’t think they’ll get more than 25 percent,” said Russ Hanshaw, a general manager at Morristown Grain Co. in Shelby County.

Hanshaw has been an outspoken critic of the fact that farmers were not given the opportunity to vote on the proposed checkoff before it went through the legislative process.

“I’m not surprised that it passed, it’s almost like a non-event from the farmers’ perspective. I still would’ve liked to see a referendum; I don’t think there’s any question they would’ve voted it down,” said Hanshaw.

“I think they (the farmers) were happy it came down from the half percent that was initially proposed, especially with four-dollar corn. There was a great deal of resistance to that.”

Morristown Grain and other elevators will now have to upgrade their computer software to comply with the new rules.

Gibson of the ICGA estimated that the checkoff will raise approximately $3 million per year for corn promotion, education and research. The funds will be invested by the Indiana Corn Marketing Council (ICMC), a farmer-run board that will expand from 10-17 voting members according to the new law.

Beginning July 1, 2008, 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.

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.