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Hoosier sheep producers could get to vote for a state checkoff

 

By MEGGIE I. FOSTER
Associate Editor

INDIANAPOLIS, Ind. — For nearly 10 years, Hoosier sheep producers have gone without a state checkoff because of an Indiana law that prohibited the existence of both a federal and state commodity checkoff.

“In 2002 when the federal checkoff (under the American Lamb Board) came into play, the state checkoff was eliminated,” said Duane Sickels, chair of the Indiana Sheep Producers and a sheep farmer from Winchester, Ind. “And unfortunately, there’s not much in terms of federal money available at the state level, most is used for national promotion.

Recently, wheels went in motion to change this for Hoosier sheep farmers as new legislation “allows a state commodity fee to be collected for an agricultural commodity even if a fee is collected under a federal program for promotion or market development.”

House Bill 1387 successfully passed both the House and Senate and currently is awaiting signature from Gov. Mitch Daniels.

“Ultimately, it will be up to the producers,” said Sickels. “The next step (to creating a state lamb checkoff) is getting signatures on a petition to initiate a checkoff market development committee. Then we’ll need a referendum vote. We’re not trying to shove it on anyone.”

According to Sickels, lamb is a relatively small commodity in the state of Indiana including nearly 1,200 sheep producers with an average of 20 ewes.
“Even with a state checkoff, we know we won’t have the impact of some of the larger commodities such as pork. But if we can generate $12,000 to $15,000 to promote lamb in the state, it’s still going to be beneficial,” he said. “For every $1 spent on promotion by the federal checkoff, there is an eight pound increase in lamb consumption. So we know from the history of checkoffs that they work in terms of promotion.”

The price for market lambs is as high as it’s ever been at $2 per pound, added Sickels. And the federal checkoff collects a half of a cent per pound of wool, as well as a half of a percent per pound of the total value of the animal. “It’s a unique and a critical situation at the same time. We need more numbers to stimulate and educate new producers,” he said. “If we don’t get more producers, we’re going to lose our slaughter infrastructure.”

Goats, wheat and small grains

“We’ve been working on developing this legislation and changing the state law for the last two years,” he said. “I was very pleased to see it pass in the Senate 50-0. And all signs are pointing toward a signature from Governor Daniels.”

Additionally, the legislation makes changes to the definition of an agricultural commodity – adding goats, wheat and small grains to the commodities already listed in state law including turkeys and mint.

“We trying to merge the sheep and goat associations in order to develop one market development committee (now that goats are listed as a commodity that can collect checkoff fees),” said Sickels.

Also, the bill clarifies the definition of the Indiana state director of agriculture, correcting a mistake to designate the responsibility of certain duties concerning commodity market development back to the Purdue University Dean of Agriculture.

“This is just a technical correction, it should’ve always referred to the Dean,” said Sarah Simpson, director of regulatory affairs for the Indiana State Department of Agriculture.

“This doesn’t change the function of a state commodity fund, this process has been in existence for a while. This is just correcting a mistake, taking it back to the way it was,” said John Baugh, director of ag services regulations at Purdue University’s College of Agriculture.

Making up the third component, the legislation now requires the Dean to conduct a referendum on the continuation of a checkoff (turkey or mint) if the amount of the refund requests under the commodity market development program exceeds 25 percent of the amount collected under the program for fiscal year. Current law requires a referendum to be conducted one time every three years.

“If 25 percent of the checkoff dollars – producers want refunded in one year – then this will call for a referendum,” said Baugh.

“In the existing law, it requires that a referendum be called every three years (for turkey and mint). We send the ballots and get votes every three years. It was inefficient and costly.”

For language regarding the legislation and changes to state law, visit www.in.gov/apps/lsa/session/billwatch and search for HB 1387.
To join the Indiana Sheep Producers Assoc. or for information about raising lambs in Indiana, contact Sickels at 765-584-9850 or Carrie Johnson, secretary of the association at carrie_indianasheep@omnicity.usa.com or 765-299-3948.

5/13/2011