By LINDA McGURK
Indiana Correspondent

INDIANAPOLIS, Ind. — The proposed Indiana corn checkoff legislation has sparked opposition among some Indiana farmers, who fear a repeat of the mandatory soybean checkoff.

But Chris Novak, executive director of the Indiana Soybean Alliance (ISA) as well as the Indiana Corn Growers Assoc. (ICGA), reiterated that a mandatory system is not on the table. “The corn growers’ (ICGA’s) board of directors is opposed to a mandatory system,” he said. “Farmers in Indiana truly believe in the value
and importance of refunds.”

The soybean checkoff legislation, which was part of the 1990 Farm Bill, contained a provision that would make it mandatory if the farmers voted in favor of it. In a 1994 referendum, 53.8 percent of the ballots cast were in favor of continuing the program. The next year, a producer poll was conducted to determine whether to have a referendum on the refunds, but since not enough producers participated in the poll to cause a referendum, refunds were discontinued on Oct. 1, 1995.

According to Novak, there’s a difference between the federal program that was passed 17 years ago and the state-based program that is now discussed.

“We feel that we are closer to the farmers and those investing the funds. The (state) legislature can always repeal the program if they don’t think it’s doing positive things for the farmers. There will be more local control,” Novak said.

Although a majority of Indiana farmers initially voted against the soybean checkoff, ISA’s statistics indicate that they might have warmed up to it over the years. ISA’s most recent poll stated that 74 percent now support the checkoff, compared with 18 percent opposed.

Novak said an “unscientific sampling” made a year ago also showed that 68 percent of the farmers support a corn checkoff.

“But those who are opposed are much more likely to be vocal than those who support it and see the long-term value in it,” he added.

Novak also addressed concerns that farmers won’t have any influence over how the checkoff funds are spent, stressing that there are 10 farmers on the Indiana Corn Marketing Council.

“It is farmers who are making the decisions in terms of how to invest these funds,” he said. Frequently mentioned priorities are to find new uses and an international market for dry distillers grain, a byproduct from ethanol production, and enhance the E85 infrastructure in Indiana, as well as support research on corn-after-corn production.

The corn checkoff legislation is currently in the final stages of being passed by the Indiana General Assembly.

The Senate voted in favor of introducing a corn checkoff on Feb. 20, and the House of Representatives passed a slightly different version of the proposal on April 10.

The Senate bill proposed a checkoff rate of 0.5 cents per bushel of corn and required a referendum to be held in August 2011 on whether to continue the program. The House version reduced the rate to 0.25 cents per bushel and contained a provision that the program will be repealed by default if the refunds exceed 25 percent of the total funds collected in a marketing year, beginning Oct. 1, 2009.

A conference committee will reconcile the differences between the bills and send a final version back through the Senate and the House before April 29, which marks the end of the legislative session.