Bomke calls for disaster aid for Illinois farmers          

[SEPT. 20, 2005]  SPRINGFIELD — High gas prices, inflated shipping charges and the summer’s damaging drought conditions have had a crippling effect on Illinois farmers and State Senator Larry Bomke (R-Springfield) is calling for the state to take action.

“So many farmers’ crops have been devastated by the drought, and now they have to deal with the skyrocketing gas prices and the massive cost increases for shipping in the wake of Hurricane Katrina’s devastation,” said Senator Bomke. “Government leaders need to step up and address this issue before this blow to the state’s agriculture industry further damages Illinois’ already fragile economy.”

Since Hurricane Katrina wiped out the Gulf Coast, gas prices have soared and barge freight rates have also spiked. As a result, many shipments of agricultural products have been slowed, creating storage issues at grain elevators. Many elevators are already out of storage capacity, and are charging upwards of 60 cents a bushel to store grain.

“One lesson that I think we have learned from the overwhelming impact of Hurricane Katrina is that all levels of government need to collaborate on ways to deal with a natural disaster of this magnitude and make all necessary preparations to respond to the effects of the disaster,” said Bomke.

Senator Bomke commented that, “We need to move quickly to address this issue, because the threat this poses to our farm economy is undeniable and in all honesty could be disastrous for the state’s economy, and most importantly, the livelihood of many Illinois farmers. The Governor appointed a Drought Response Task Force in June, but it doesn’t seem like they were given the authority or resources needed to initiate an effective response to the disaster.”

He explained that the Senate Republican Caucus has introduced several possible solutions intended to address the rising costs of fuel, shipping and storage for the state’s farmers. A couple of the ideas could be implemented immediately, without legislative action.

“We realize the several of the initiatives will require consideration by the General Assembly, however we have presented some options to the Governor that he could employ now,” Bomke said. “When the Legislature reconvenes next month, we plan to introduce additional legislative measures to provide the help our farmers need.”

The Senate Republican farmer relief plan calls for:

 Immediate gubernatorial action

• Declare an emergency harvest situation to allow overweight vehicles until December 31^st without permits;

• Issue an executive order authorizing the use of dyed diesel fuel in highway vehicles;

• Require 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;

• Petition the federal government to extend the time period for using dyed diesel fuel in highway vehicles through December, exempt farmers from tax liability for the use of such fuel, and allow a reasonable time frame (up to six additional months) for farmers to clear dyed diesel fuel from vehicles.

Possible legislative action

• Pass 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;

• Create tax incentives to Illinois livestock producers who purchase Illinois grain for feed, additional incentives to increase storage capacity for both on-farm and at commercial grain elevators and tax incentives for farm enhancements to improve harvest, storage and land management practices and tax incentives review and possible waiver of EPA fees and regulations that serve as disincentives for producers or storage facilities to expand capacity or replace outdated facilities;

• Review available state low-interest loan programs to identify ways those programs which can be expanded to encourage improvements in grain storage and increase available shipping options for Illinois farmers;

• Establish 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 travel 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;

• Provide emergency assistance to Illinois producers who have experienced 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.

“These proposals are just a couple of ideas that we came up with, however we are more than willing to consider alternative suggestions,” Bomke said. “Drought relief meetings are being planned to allow us to meet with farmers throughout Illinois and I expect that a lot of the ideas presented at these meetings will be incorporated into the legislation that will be introduced later this fall.”

[News release]