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Attention Virginia Grain Producers
and Industry Members:
In the 1980s the Virginia Corn Act and Virginia
Small Grains Act were passed by producer referendum
to allow a voluntary self-assessment (called excise
tax) to be collected on each bushel of grain sold in
the Commonwealth. Per the legislation passed, the
Virginia Corn Board and Virginia Small Grains Board
were created to expend funds for the purposes of
market development, education, publicity, research
and promotion for Virginia’s grain industry.
During the recent budget cycle, the General Assembly
passed a budget amendment that provides for the VA
Department of Taxation to assess fees on certain
checkoff funds, including corn and small grains.
The Virginia Grain Producers Association is
adamantly opposed to this action and the dangerous
precedent it will set for the future. VGPA has
drafted a letter to Governor McDonnell asking for an
amendment to the current budget to stop government
access to producer funds. To
read the VGPA letter,
click here.
MEMBERSHIP CALL TO ACTION:
We strongly encourage each of you to contact
Governor McDonnell's staff and Secretary Haymore
expressing your perspective as producers and
industry professionals on this budget initiative.
Contact information and specific budget language is
below. We realize this is an extremely busy time
for agriculture but
contact this week is
important
as the Governor's staff is already drafting
budget amendments.
Many of you have unique and specific perspectives to
share - for example, lots of Virginia's corn and
small grain checkoff money goes to research at
Virginia Tech. If you feel continuing to support
our researchers with these dollars is important, let
it be known. Other important projects/organizations
funded by checkoff dollars - Ag in the Classroom,
Virginia Grain Producers Association, National Corn
Growers, National Assn of Wheat, US Grains and US
Wheat.
A few bullet points that may be helpful in drafting
your emails:
-
Value of economic return from checkoff money far
outweighs proposed state fee assessment
(research, promotion, marketing, export, etc).
-
Allowing government access to these producer
funds sets dangerous precedent for any other
government agency to pull fees from checkoff
funds as well.
-
General Assembly provided no clear formula for
assessing these fees and no time duration for
such fees.
-
Total proposed assessment to come out of
checkoff funds is only $23,000.00 total. Not
significant for state of budget to approve
precedent-setting government access to producer
funds.
-
Other commodity boards pay an assessment fee to
state because their instating legislation (VA
code) provides for such fees to be taken. VA
Corn Act and VA Small Grains Act do not make
this provision.
-
VA Corn and VA Small Grains Act clearly state
checkoff dollars (called excise tax) are to be
used for market development, publicity,
education, research, and promotion of sale/use
of grain…to benefit Commonwealth as a whole. No
exceptions are given to these uses
-
As Virginia producers continue to face
regulatory threats like water quality
initiatives and EPA rule-making efforts, we need
to use this money for education, research and
protection of Virginia's top economic sector,
production agriculture. If grains industry
cannot continue to help itself with these funds
intact, the Commonwealth will lose money in the
long run. Checkoff dollars are not used for
legislative issues or lobbying efforts.
-
The Commonwealth of Virginia (and specifically,
the Dept. of Taxation)collects checkoff money
all year and sends to VDACS in one lump sum for
allocation to checkoff board. They amount of
interest they earn on that money over the year
MORE than pays for any fees incurred.
Contact Information:
Todd Haymore - Secretary of Agriculture and Forestry
-
todd.haymore@governor.virginia.gov
Eric Finkbeiner - McDonnell Senior Advisor on Policy
-
eric.finkbeiner@governor.virginia.gov
The specific budget provision:
Transfer of Checkoff Assessments:
A.1. In order to reimburse the general fund of the
state treasury for expenses herein authorized to be
paid therefrom on account of the activities listed
below, the State Comptroller shall transfer the sums
stated below to the general fund from the nongeneral
funds specified, except as noted, on January 1 of
each year of the current biennium.
- Apple Tax: $1,877 in FY1 and FY2
- Egg Promotion Tax: $2,254 in FY1 and FY2
- Soybean Tax: $5,781 in FY1 and FY2
- Corn Excise Tax: $3,181 in FY1 and FY2
- Small Grain Tax: $7,978 in FY1 and FY2
- Assessment of Sheep Sold: $177 in FY1 and FY2
- Cotton Tax Assessment: $1,486 in FY1 and FY2
Additional Information:
The VGPA letter has been shared with VDACS staff
that handles other commodity boards so they are
aware of our effort. If you are a member of another
commodity association, please contact them urging
them to participate. VGPA has been in consistent
contact with our new Secretary of Agriculture and
Forestry, Todd Haymore, on this topic. He is
supportive and will take our concerns to the
Governor. Please contact him TODAY and HELP HIM
HELP US!
Links to Letters Already Sent:
VGPA Letter
Letter from Dan Brann
Letter from Bryan Taliaferro |
