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As Illinois soybean producers head to the field this spring, Illinois Soybean Association farmer-leaders are engaged in the legislative process.

The legislative focus this spring is on the federal biodiesel tax extension but is quickly moving to the 2012 Farm Bill.

The Illinois Soybean Association has aggressively supported the National Biodiesel Tax Credit Extension, which expired December 31, 2009. Although retroactive tax credit bills have been passed by the House and the Senate, the two chambers have yet to reconcile differences between their respective bills.

Since the tax credit expired, biodiesel production and consumption has dramatically declined, biodiesel production facilities have closed, thousands of biodiesel industry workers have lost their jobs, and surplus soybean oil stocks continue to increase as a result of lower demand. 

The biodiesel tax incentive, which is structured as a federal excise tax credit, amounts to a penny per percentage point of biodiesel blended with petroleum diesel. The incentive makes biodiesel more competitive with petroleum diesel, and lowers the cost of biodiesel to the end consumer.

In December, ISA applauded House leaders for taking action to pass legislation that included the biodiesel tax incentive.

In February, after Senate Majority Leader Harry Reid (D-Nevada) announced drastic changes to the bipartisan jobs bill, which removed the biodiesel tax credit extension, ISA and Illinois biodiesel companies called on Senator Dick Durbin to reinstate the biodiesel tax credit through the first moving piece of legislation available. 

"The tax credit needs to be included to protect the Illinois biodiesel industry, its employees and thousands of green collar jobs nationwide," said Mike Cunningham, a Vermilion County farmer and ISA vice chairman.

In March, ISA applauded the Senate for passing the biodiesel tax credit. ISA also supported a final push by the National Biodiesel Board and American Soybean Association (ASA) in April and May.

"Call Illinois' U.S. senators and representatives and encourage them to contact their party's leadership to push for a biodiesel tax incentive extension before the Memorial Day recess," said Ron Kindred, ISA at-large director from Atlanta, Ill., and ASA secretary.

While Kindred and others pushed for the biodiesel tax incentive, they also started looking ahead at the 2012 Farm Bill.  In April, Kindred was named to the ASA 2012 Farm Bill Working Group.

ASA farmer-leaders met with House Agriculture Committee Chairman Collin Peterson (D-MN) to discuss his plans to hold preliminary hearings on the 2012 Farm Bill. As part of the working group, Kindred expects to present the group's farm policy views at committee hearings in June or July.

Peterson's goal is to mark-up a bill in 2011 to avoid further cuts in the agriculture budget baseline. He said hearings will focus on how to make the best use of available funds, possibly by eliminating parts of the farm safety net and reforming others. He has made clear that he wants to include federal crop insurance reform in the next Farm Bill.

ASA is already starting to give some direction on the 2012 Farm Bill. For example, ASA supported enactment of the 2008 Farm Bill despite that cuts in overall agriculture spending prevented soybean producers from achieving full equity in support levels with other program crops. 

"We oppose reopening this legislation, which provides a long-term commitment to provide income support to farmers when prices and yields decline," Kindred said.

The administration's budget proposals for FY-2011 would require Congress to reopen the 2008 Farm Bill to reduce the cap on direct payments and the adjusted gross income thresholds for farm and non-farm income that determine eligibility for program benefits.  It also would impose an $8 billion cut in spending for the federal crop insurance program over ten years, and a 20 percent reduction in the Market Access Program.  ISA strongly opposes these proposals, and urges Congress to maintain the current safety net for U.S. farmers through expiration of the Farm Bill in 2012.

The Illinois Soybean Association will work to build a coalition other commodity groups to implement working groups on Illinois specific issues for the Farm Bill. 

Meanwhile, during the Illinois General Assembly's spring session, ISA continued to be engaged in the legislative process. ISA supported HB 2573, which made updates to the Weights and Measures Act, including a more current definition of "biodiesel" and increases in certain fees and fines. Also, since livestock is a top priority, ISA supported legislation, which has not moved out of committee, that looked to prohibit any person from bringing a civil suit based on potential nuisance with respect to a proposed livestock facility until all federal, state, and local permits and approvals required for the proposed facility have been granted.

ISA is the statewide organization for Illinois soybean farmers.  The farmers on its board administer soybean checkoff funds to support research, promotions and educational programs designed to increase demand for Illinois soybeans and administer legislation and membership programs.  Contact ISA at 309-663-7692, or visit www.ilsoy.org.

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