By TIM ALEXANDER
Illinois Correspondent

PEORIA, Ill. — Though Illinois Gov. Rod Blagojevich’s proposed gross receipts tax (GRT) on businesses was dealt a serious blow May 10 when the Illinois House unanimously voted against the tax in a non-binding resolution, farm groups are remaining vigilant.

Both the Illinois Farm Bureau and Illinois Fertilizer and Chemical Assoc. (IFCA) are urging their members and other farmers to contact their local legislators and keep the pressure on the governor to take the GRT proposal off the table.

The Peoria County Farm Bureau (PCFB) is offering members a one-page news release detailing the cost of the proposed GRT to a Peoria County farmer.

According to the PCFB, assuming $3.50 corn at harvest, the GRT cost to plant 500 acres of corn would be $5,290, considering fertilizer, seed, herbicide and custom application costs. The GRT on the sale of harvested bushels comes to $2,565; therefore, a $7,855 GRT would be paid on 500 acres of corn - $5,290 additional planting expense, plus $2,565 in harvest revenue lost.

For 500 acres of soybeans, assuming $7.25 beans at harvest, the GRT cost to plant would come to $1,370. The GRT on harvested bushels tallies $1,470 for a total GRT of $2,840.

A farmer planting 1,000 acres with a 50-50, corn/bean mix would pay $10,695 in GRT, according to the PCFB.

The IFCA’s website (www.ifca.com) contains several pages and links describing the GRT’s effect on all facets of farming operations, including instructions on how to make your voice heard. Other offerings on the page include a GRT calculator, a summary of the proposal, and the GRT’s impact on ag inputs, grain elevators, pork and beef producers, cattle and cattle feeding industry, and links to media reports.

This farm news was published in the May 23, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.