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October 3, 2014
Volume 14
Issue 28
STATE NEWS
MEETING #2 OF COMMISSION ON BUSINESS PERSONAL PROPERTY AND BUSINESS TAXATION The Commission on Business Personal Property and Business Taxes met for the second time on Sept. 29. The commission is chaired by Sen. Brandt Hershman (R-Buck Creek) with Rep. Mike Karickhoff (R-Kokomo) serving as vice-chair. Other legislators serving are Rep. Greg Porter (D-Indianapolis), Rep. Eric Turner (R-Cicero), Sen. John Broden (D-South Bend) and Sen. Luke Kenley (R-Noblesville). This commission includes non-legislator members, including representatives of the Association of Indiana Counties, Indiana Realtors, Indiana Association of Indiana Cities and Towns, Indiana Association of School Business Officials, the Indiana Chamber, Indiana Manufacturers Association and INFB’s Katrina Hall, representing Indiana agriculture.
Department of Revenue Commissioner Michael Alley gave a report on Gov. Pence’s June Tax Conference regarding tax simplification and tax competitiveness, both of which are of interest to this commission. Other reports were provided by Policy Analytics LLC and Legislative Services on the tax implications from the 2008 tax reforms adopted by the legislature including the property tax caps. The evidence showed which units were hit hardest by the tax caps. Rental property receives the largest benefit of all taxpayers and almost every dollar of the relief in the two percent category that they share with farmland. Multiple speakers commented that part of the problem with the property tax system now is the lack of assessed value growth. This lack of growth causes more circuit breaker loss and farmland taxes to go even higher. Because the committee meeting was so long, they will hear testimony from Indiana Farm Bureau at their next meeting on Oct. 23 when they consider recommendations for the full legislature.
HOOSIER FARMER CONTAINS POSTCARD ASKING FOR TAX INFORMATION An awareness campaign for the farmland tax issue is underway at Indiana Farm Bureau. We are asking members to complete a postcard describing their farming operation and their property tax burden. The October issue of The Hoosier Farmer includes a simple self-addressed, postage paid postcard asking farmer members to provide INFB with their most recent property tax information. Since most members will be preparing to write checks to the county treasurer before the Nov. 10 payment deadline, this information should be readily available. The postcard asks for tax information on rented land because escalating property taxes are affecting parties on both sides of that relationship in very real ways. Landlords have as much at stake as their farm operators.
What is the point of this exercise? We want to show the volume of frustration farmers are facing with taxes that are too high. But, this information will also be ready when farmers are asking legislators to support farmland tax relief. INFB’s lobbying team will be using it to give real life examples of the level of property tax paid by each farming operation – whether the land is owned or rented. These examples will illustrate the heavy burden that has materialized over the last few years when other taxpayers have seen their bills reduced or remain stable.
The ag community knows that farmland taxes have risen dramatically since the tax reforms of 2007 – as much as 33 percent statewide. But legislators don’t realize how much that is affecting farming families who are facing very low prices for this fall’s crop. They must also realize that estimates of the taxable value of farmland through 2017, regardless of the soil productivity issue, show alarming increases in the base value which will translate into escalating farmland tax bills – unless the general assembly intervenes.
The support of both the Indiana House of Representatives and Indiana Senate is critical to making sure that the profitability of agriculture is not completely eroded by the farmland tax burden.
ENERGY STUDY COMMITTEE MEETS The Interim Study Committee on Energy, Utilities and Telecommunications met for the second time on Sept. 23. The committee, chaired by Rep. Eric Koch (R-Bedford), accepted reports from the Office of the Utility Consumer Counselor, the State Utility Forecasting Group and the Indiana Utility Regulatory Commission. Topics of discussion included renewable energy resources, water/wastewater utilities and energy efficiency programs. Read more.
INDIANA CERTIFIED CROP ADVISER’S AWARD The county Farm Bureau that nominates the winning CCA member will receive a $250 check and the winner of the CCA award will receive $1,500. Indiana Farm Bureau is a sponsoring organization of this award and the deadline of the application is Nov. 15. We are very hopeful that your county will nominate a CCA member for this award. Last year’s winner was Bill Huffmeyer from Ripley County. The certified crop advisers play a very important part in the success of your farming operation. This is another way to recognize them for their career. If you have any questions, don’t hesitate to contact Bob Cherry, 317-692-7809.
VOTING IS KEY TO STANDING UP FOR AGRICULTURE AND RURAL INDIANA Less than 45 days from now, INFB members will have the chance to influence the direction of our state and country by voting pro-agriculture candidates to the Indiana Statehouse and U.S. Congress on Tuesday, Nov. 4.
What can farmers and their families do before Nov. 4 to ensure that pro-agriculture candidates are elected to the Indiana Statehouse and U.S. Congress?
- Encourage your farming friends and neighbors to register to vote or check their registration online with the statewide voter registration system. It is simple and easy. It also allows you to make sure your existing voter registration has not been purged by the Secretary of State.
- Review Indiana Farm Bureau ELECT’s list of endorsed Indiana statehouse and congressional candidates. Vote for those who are endorsed. They will be featured in the Oct. 6 edition of The Hoosier Farmer.
- Get involved in the process by displaying yard signs or distributing materials for endorsed candidates in your area. They can always use volunteers and it is a great relationship building experience that will pay dividends when agriculture needs their help.
- Remind your farming friends, family and neighbors about the important election coming up on Tuesday, Nov. 4. Remind them that agriculture especially needs friendly legislators in the Indiana General Assembly to address priority issues like rapidly escalating farmland taxes, unwelcome involuntary annexation and protection of water resources for agriculture.
Be an Indiana Farm Bureau voter in 2014! Indiana agriculture needs your participation.
FEDERAL NEWS
WATERS OF THE U.S. ACTIVITIES ENTERING FINAL STRETCH Oct. 20 is the final date for submission of comments to EPA and the Army Corps of Engineers on the Waters of the U.S. rule proposal. It is also important to submit comments to Senators Donnelly and Coats asking them to urge the Senate to take action on HR 5078, which passed the U.S. House of Representatives by a bipartisan vote. HR 5078 would prohibit the agencies from finalizing this version of the rule and requires them to work with state and local government to address the issue of what legally should be considered a federally regulated water. Farmers, homeowners, business owners and representatives of local government can submit comments.
AG GROUPS MEET WITH EPA Justin Schneider from INFB made the annual trip to the EPA Region V office in Chicago on Oct. 1, along with representatives from Indiana Pork and the Indiana Soybean Alliance/Indiana Corn. The trips provide a great opportunity to strengthen relationships with EPA staff and also give us the opportunity to discuss concerns. At the request of EPA, concerns with the Waters of the U.S. rule proposal were discussed. However, most of the meeting focused on nutrient and soil health issues and getting input from EPA on how to enhance voluntary efforts to achieve reductions in nutrients lost from fields. This input is critical in designing effective strategies to keep nutrient regulations from being mandated by EPA.
USDA UNVEILS MORE DETAILS, RESOURCES FOR FARM BILL CROP PROGRAMS Last week, the USDA unveiled new details and resources for the crop programs created in the 2014 farm bill, which include Agriculture Risk Coverage at the county level, Agriculture Risk Coverage individual-level and Price Loss Coverage programs. Starting last Monday, Sept. 29, farm owners began visiting their local Farm Service Agency offices if they wanted to update their yield history and/or reallocate base acres, the first step before choosing which new program best serves their risk management needs. However, farmers are advised to take their time due to the additional complexity of this farm bill’s programs. Because they must make a one-time, irrevocable decision for the life of the five-year farm bill, they should do their homework and use the tools available to them by the FSA and land-grant universities.
Several weeks ago, the USDA sent letters to farm owners and producers with information to help analyze a farm’s crop planting history in order to help farmers decide whether to stay with current base acres or reallocate them according to recent planting history. The next step in USDA’s safety net implementation is scheduled for this winter when all producers on a farm begin making their election.
To help make the decision between ARC and PLC, the USDA has invested $6 million into the creation of an online tool. The University of Illinois also has developed an online tool to help producers compare programs and make the best choice with support from the USDA called the Farm Bill Toolbox. Resources will also be updated and available on an ongoing basis at the IFB Stay Informed website.
SBA CALLS ON EPA TO WITHDRAW WATERS OF THE U.S. RULE The Small Business Administration’s Office of Advocacy on Tuesday called on the Environmental Protection Agency to withdraw its proposed Waters of the U.S. rule.
The SBA is raising concerns that the EPA’s proposed WOTUS rule is in violation of laws aimed at protecting small businesses. In comments submitted to EPA Wednesday, the office argues that the agency should withdraw the rule as small businesses were not consulted over its provisions, as required by the Regulatory Flexibility Act, including farmers.
“The SBA’s frankness may surprise some, but it does not surprise us,” said American Farm Bureau Federation Bob Stallman in a statement. “The EPA has been heedless and cavalier in its disregard for the American farmers who would be most affected by this unworkable proposal,” he added.
OTHER NEWS
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