Pontiac, IL – High gas prices, inflated shipping charges
and the summer’s damaging drought conditions have had a devastating effect on
Illinois’ agricultural community and State Senator
Dan Rutherford (R-Pontiac) is urging state leaders to take
action.
“The drought has
affected hundreds of farmers throughout Illinois and now they are confronted with the
skyrocketing gas prices and massive shipping cost increases left in the wake of
the Hurricane Katrina disaster,” explained Sen. Rutherford. “It’s imperative
that Illinois’ leaders work together to address this issue
before the agriculture industry is damaged
further.”
Since Hurricane
Katrina destroyed the Gulf Coast, fuel prices have soared and barge freight
rates have also increased. As a result, many agricultural shipments have been
slowed or detained creating a reduction in available storage at grain elevators.
Many elevators have already reached capacity and, as a result, are charging
upwards of 60 cents a bushel to store grain.
“The inflated
costs of fuel and shipping could be devastating to
Illinois’ agricultural community and the state’s
already fragile economy. Undoubtedly there is a sense of urgency associated with
addressing the situation, which is why we need to move quickly to provide some
financial relief for Illinois farmers,” Rutherford said.
Rutherford explained that there are several ways he
believes state government could reduce the rising costs of fuel, shipping and
storage, and ease the burden on Illinois farmers. He noted that some of the
suggestions could be implemented immediately, bypassing consideration by the
General Assembly, including:
- Declaring an emergency harvest situation to allow
overweight vehicles on state roads and highways without permits until December
31st;
- Issuing an executive order authorizing the use of dyed
diesel fuel in highway vehicles;
- Requiring state agencies, such as the Illinois Department
of Transportation, to conduct an immediate audit of facilities to identify any
state-owned property suitable for the temporary storage of grain; and
- Petitioning the federal government to extend the time
period for using dyed diesel fuel in highway vehicles through Decembers,
exempting farmers from tax liability for the use of such fuel and allowing a
reasonable time frame (up to six addition months) for farmers to clear dyed
diesel fuel from vehicles.
Rutherford noted that several additional proposals
would require consideration by the Legislature, such
as:
· Passing legislation to extend the state’s already
existing sales tax exemption for construction materials used in an Enterprise
Zone to include materials used in the construction, renovation or expansion of
grain storage and shipping facilities, regardless of
location;
· Creation of tax incentives to Illinois livestock
producers who purchase Illinois grain for feed, addition incentives to increase
storage capacity for both on-farm and commercial grain elevators, as well as tax
incentives for farm enhancements to improve harvest, storage, and land
management practices and tax incentives to review and possibly waiver EPA fees
and regulations that serve as disincentives for producers or storage facilities
to expand capacity or replace outdated facilities;
· Reviewing the state’s available low-interest loan
programs to identify ways the programs can be expanded to encourage improvements
in grain storage and increase available shipping options for Illinois
farmers;
· Establishing a
“Shortest
Route” program to conserve fuel by allowing grain
trucks to have access to Interstate Highways without having to meet the minimum
40 mph driving speed when traveling on the Interstate offers a shorter route
from the field to a grain storage facility. Trucks would be restricted to the
right lane and minimum speed and maximum weight restrictions would be lifted
only if the vehicles travel fewer than 20 miles on any Interstate route; and
· Providing emergency assistance to
Illinois producers who have experience an
extraordinary amount of loss due to the drought or related factors, and state
assistance to Illinois producers in order to offset storage costs
incurred during the 2005 crop year.