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NDA HEARING TO REDUCE FEED TAX The Nebraska Department of Agriculture’s (NDA) regulations reducing the current 10 cent per ton feed tax paid by elevators, feed mills and ethanol plants is on track for a May 1, 2008 hearing. If adopted, fees collected to fund the state feed inspection program will be reduced by 3 cents. Reducing the fee to 7 cents per ton would save Nebraska grain elevators, feed mills and ethanol plants producing feed and distillers grains over $240,000 per year. The proposed regulation came in the wake of industry opposition to a legislative proposal which would have permanently shifted 2 cents from the current feed tax paid by the grain and feed industry to the state feed inspection program, to the noxious weed control program. The the feed inspection fund is a variable rate set by the NDA, and the NDA feed division accumulated a surplus of funds which attracted the attention of several lawmakers looking to fund other programs. The Nebraska Grain and Feed Association (NGF) and the Nebraska Cooperative Council (NCC) vigorously opposed earmarking any fee or tax paid by the feed industry and designated specifically to support the feed inspection program, to any unrelated program. After discussions between the Ag Committee and the grain and feed industry, legislation was adopted to provided for a one time transfer of $200,000 from the commercial feed inspection fund to the noxious weed grant fund.
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