The Iowa Corn Growers Association supports raising the legislative cap on the state corn checkoff so that farmers could choose by referendum whether they want an increase in the corn checkoff rate in future years.

"We are supportive of the portion of a bill currently being considered in the legislature, HSB 524, which calls for raising the current legislative cap—the authority to hold a referendum—from one cent to five cents per bushel, one penny at a time with five year increments in between," says Mindy Larsen Poldberg, government affairs director for ICGA. She provides the following explanation of this legislative proposal.

CHECKOFF CHANGE PROPOSED: Iowa Corn Growers Association wants state lawmakers to enact legislation giving farmers greater control over the state corn checkoff.

Key provisions
The bill includes language that pertains to the checkoff assessment rate. The checkoff rate is currently one cent per bushel on corn the first time it is sold by farmers in Iowa. The bill calls for 4 additional cents that could be added—up to 5 cents—with five-year intervals between each increase.

HSB 524 as it is now worded would not raise the Iowa corn checkoff rate. That must be done through holding a statewide farmer referendum. Any decision regarding the checkoff rate would continue to be in the hands of Iowa corn farmers via referendum—just as it was when the state's corn checkoff was created by farmers in 1976. The bill does, however, increase the Iowa code's one cent per bushel maximum and it permits a five cent per bushel cap. There is no intent to raise the corn checkoff any time soon; the legislative cap is being discussed for long term, proactive planning.

~~~PAGE_BREAK_HERE~~~

ICGA needs corn farmer support of the checkoff. If the cap is not raised from one cent per bushel, the legislature will maintain the authority over the corn checkoff rate. If the cap is not raised, only the government could decide the appropriate time to allow for a referendum in the future, instead of farmers being able to make that decision.

By raising the cap as provided by HSB 524, Iowa corn farmers will maintain the right to protect their checkoff by having their farmer-elected leaders select the recommended checkoff rate and allowing all eligible farmers to vote in the referendum. ICGA believes corn farmers should maintain control of the Iowa corn checkoff to best meet the immediate education, research and market development needs in our quickly changing and evolving agriculture world today, especially as emerging issues arise.

What else is contained in this bill, known as HSB 524?
The bill as it is now proposed, if it is eventually passed into law, would require the Iowa Department of Agriculture & Land Stewardship to create and then administer an ongoing list of checkoff contributors (including farmers' names and addresses). This new list would be used to send direct mail notice of any referendum and an absentee ballot, should a referendum be held in the future.

Currently there is not a comprehensive list of all corn checkoff contributors. A list is not available through IDALS or through the Iowa Corn Promotion Board, but rather the list remains privately held by each first purchaser of corn (co-op, ethanol plant, elevator, etc.). IDALS is already required to provide notice to the public in advance of a checkoff referendum. IDALS administers the referendum vote on the proposed assessment increase. Without this provision, the checkoff would continue as it does under current law, as farmers today may vote either in person or absentee by mail ballot.

Also, the bill as now written contains a requirement of the first purchaser of corn to provide the farmer a refund form and a farmer registration card (for the list) along with a settlement statement for each and every corn purchase. Iowa's state government does not currently require first purchasers of corn to provide these items, but this bill would expand the government requirements for first purchasers.

~~~PAGE_BREAK_HERE~~~

Changes for first purchasers
Most farmers sell corn many times per year; a refund form would be sent to a farmer at each time of sale, for example, 12 to 15 times per year, or however often corn is sold.

Without this provision, refund forms would be distributed under the current law, which has been the same as since the corn checkoff's inception. That is, corn checkoff refund forms are available, upon request, at all licensed grain dealers (first purchasers of corn in Iowa). The ICPB sends refund forms to all first purchasers annually. Producers who want to request a refund may send, fax or email the refund form to the ICPB under current procedures.

ICGA is currently registered as monitoring this corn checkoff bill in the state legislature. A subcommittee of the legislature is considering this bill and a meeting of that subcommittee has been scheduled for Tuesday, February 4. ICGA is working with legislators to support raising the legislative cap, and to address the inclusion of the additional requirements. Click here for more information about the current use of checkoff funds, future need for checkoff funds, and history of the corn checkoff.