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Committee Proposes Diverting Feed Tax Surplus to Noxious Weed Program
The Legislature’s Ag Committee advanced an amended version of LB 862 to the floor last week that provides for a one time transfer of a $200,000 surplus from the commercial feed inspection fund to the noxious weed grant fund, and annually transfer another $50,000 back to the noxious weed grant program. Importantly however, the amended bill also reduces the feed tonnage fee to nine cents per ton beginning July 1, 2008. Currently, the fee is at ten cents.
NGF appeared before the Agriculture Committee in opposition to LB 862. Originally, LB 862 would have shifted two cents from the current ten cent per ton feed tax paid by elevators and feed mills to the state feed inspection program, to the noxious weed control program. The director of the state Department of Agriculture has the authority to set the feed tax as high as 15 cents. Additionally, the director also has the authority to reduce the feed tax if revenue in the feed inspection fund is determined to be adequate. Currently, the feed inspection program has a surplus of funds, and the Appropriations Committee could have reallocated the surplus to non-agriculture related programs.
The association on principle opposed shifting any fee or tax designated specifically to support a particular program to any other unrelated program. NGF argued that there are other funding sources the legislature could examine more applicable to the administration of the noxious weed program. NGF stressed that any surplus in the feed inspection program should go back to elevators and feed mills that pay them.
NGF did get a commitment from several senators on the committee to conduct an interim study to identify other funding sources that are more applicable to the noxious weed program. Other funding sources that could be considered next session include an increase in the pesticide labeling fee, of which a certain portion already goes to the noxious weed fund.
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08.08.08
Summer Meeting & All-NGF Golf Scramble
Quarry Oaks Golf Club, Ashland
Nebraska Grain and Feed Association
1233 Lincoln Mall, Suite 200
Lincoln. NE 68508
Phone: 402-476-6174
Fax: 402-476-3401
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