Rutherford calls for disaster aid for Illinois farmers

Friday, September 23, 2005 - Posted 5:02:36 PM by Office of Sen. Dan Rutherford

Pontiac, IL – High gas prices, inflated shipping charges and the summer’s damaging drought conditions have had a devastating effect on Illinois’ agricultural community and State Senator Dan Rutherford (R-Pontiac) is urging state leaders to take action.

 

“The drought has affected hundreds of farmers throughout Illinois and now they are confronted with the skyrocketing gas prices and massive shipping cost increases left in the wake of the Hurricane Katrina disaster,” explained Sen. Rutherford. “It’s imperative that Illinois’ leaders work together to address this issue before the agriculture industry is damaged further.”

 

Since Hurricane Katrina destroyed the Gulf Coast, fuel prices have soared and barge freight rates have also increased. As a result, many agricultural shipments have been slowed or detained creating a reduction in available storage at grain elevators. Many elevators have already reached capacity and, as a result, are charging upwards of 60 cents a bushel to store grain.

 

“The inflated costs of fuel and shipping could be devastating to Illinois’ agricultural community and the state’s already fragile economy. Undoubtedly there is a sense of urgency associated with addressing the situation, which is why we need to move quickly to provide some financial relief for Illinois farmers,” Rutherford said.  

 

Rutherford explained that there are several ways he believes state government could reduce the rising costs of fuel, shipping and storage, and ease the burden on Illinois farmers. He noted that some of the suggestions could be implemented immediately, bypassing consideration by the General Assembly, including:

 

  • Declaring an emergency harvest situation to allow overweight vehicles on state roads and highways without permits until December 31st;
  • Issuing an executive order authorizing the use of dyed diesel fuel in highway vehicles;
  • Requiring state agencies, such as the Illinois Department of Transportation, to conduct an immediate audit of facilities to identify any state-owned property suitable for the temporary storage of grain; and
  • Petitioning the federal government to extend the time period for using dyed diesel fuel in highway vehicles through Decembers, exempting farmers from tax liability for the use of such fuel and allowing a reasonable time frame (up to six addition months) for farmers to clear dyed diesel fuel from vehicles.

 

Rutherford noted that several additional proposals would require consideration by the Legislature, such as:

 

·        Passing legislation to extend the state’s already existing sales tax exemption for construction materials used in an Enterprise Zone to include materials used in the construction, renovation or expansion of grain storage and shipping facilities, regardless of location;

·        Creation of tax incentives to Illinois livestock producers who purchase Illinois grain for feed, addition incentives to increase storage capacity for both on-farm and commercial grain elevators, as well as tax incentives for farm enhancements to improve harvest, storage, and land management practices and tax incentives to review and possibly waiver EPA fees and regulations that serve as disincentives for producers or storage facilities to expand capacity or replace outdated facilities;

·        Reviewing the state’s available low-interest loan programs to identify ways the programs can be expanded to encourage improvements in grain storage and increase available shipping options for Illinois farmers;

·        Establishing a “Shortest Route” program to conserve fuel by allowing grain trucks to have access to Interstate Highways without having to meet the minimum 40 mph driving speed when traveling on the Interstate offers a shorter route from the field to a grain storage facility. Trucks would be restricted to the right lane and minimum speed and maximum weight restrictions would be lifted only if the vehicles travel fewer than 20 miles on any Interstate route; and

·        Providing emergency assistance to Illinois producers who have experience an extraordinary amount of loss due to the drought or related factors, and state assistance to Illinois producers in order to offset storage costs incurred during the 2005 crop year.