For the past two years, the Illinois ag industry has engaged in a legislative effort to ensure the future of nutrient research and education programs in Illinois.  The budget challenges of our state government have resulted in the transfer of monies dedicated for fertilizer research from tonnage fees paid, and we know the challenges our universities also face in keeping faculty and research programs vibrant in the agricultural sector due to budget cuts.  On top of that, our industry faces critical challenges relative to water quality and nutrient use; we need only look to other areas of our country where water quality standards directed at nutrients are changing the landscape of agriculture as we know it. 

 

Yesterday, August 14, 2012, Governor Pat Quinn signed HB 5539, which makes significant changes in the Illinois Fertilizer Act to assure that dedicated tonnage fees paid will be utilized for nutrient research, education and water quality programs in the ag sector.  These monies will be protected from fund sweeps and will be managed by our industry to fund programs to enhance nutrient utilization, increase crop production and reduce nutrient losses. 
 

Shortly, all fertilizer registrants will receive a letter from the Illinois Department of Agriculture outlining the changes in the Fertilizer Act.  Of immediate importance is the collection of the fertilizer inspection fee and nutrient research assessment.  Effective immediately, all fertilizer tons sold after August 14, 2012 must account for a 25 cent inspection fee as well as a 75 cent nutrient research assessment.  The legislation signed yesterday assures that the current 25 cent inspection fee you have always paid now goes to the IDA to support the fertilizer licensing, registration, quality and safety programs that are important to the integrity and future of our industry.  In the past, this 25 cent inspection fee went 1/2 to the state treasury and 1/2 to the old fertilizer research program (FREC), which was repeatedly swept of those funds. 

 

In addition, effective immediately, you must also account for a 75 cent per ton assessment for the new Nutrient Research & Education Council (NREC).   This ag industry led Council determines the assessment level needed to assure necessary nutrient research and water quality programs for our industry.  The Council met yesterday and set the assessment level at 75 cents.  It will be a condition of your license to distribute fertilizer to collect a total of $1.00 per ton on all fertilizer tons sold after August 14, 2012 and until further notice.  You must remit these assessments when you pay your semi-annual tonnage fees.  IDA will provide forms and invoices for the payments, which will be separate:  25 cents to IDA and 75 cents to the NREC.  These assessments must be collected on the final sale to the end-user of the fertilizer.  It will be up to you as a fertilizer retailer to determine how you should account for the total $1.00 per ton, whether internally or by listing it on the fertilizer invoice.  Just please be sure to account for it beginning with the fall 2012 tons. 

 

At this point, if you have not already done so, please remit the 25 cent tonnage fee for the spring 2012 tons; the delay that IFCA sought in the normal payment schedule for spring tonnage fees (normally due July 31, 2012) was necessary to assure that the check you now send in will go to IDA instead of to the state treasury and the old FREC program that was swept.  You must pay your spring 2012 tonnage fees to IDA by September 30, 2012 to avoid a penalty. 

 

Please watch for the letter from IDA outlining the changes in the Act; IFCA will also provide additional information on these changes.  This legislation was critically necessary in Illinois to assure that the future of nutrient use in our state is based on science-based research, application of this research to on-farm practices, and education about nutrient utilization to ensure that any policy decisions made with regard to fertilizer use are wise decisions and not one-size-fits-all regulatory approaches.  Our industry is under fire on fall application of fertilizers, rate determinations and application methods.  Your IFCA Board believes that the best defense is a proactive offense.  We believe strongly that the NREC program will take nutrient utilization in Illinois to the next level, assuring increased yields for growers, reduced nutrient losses to the environment, enhanced profitability for the ag sector and an overall win for agriculture, society and the environment.  Over the next year as this program is implemented you will see the future of nutrient programs change in an extremely positive way, with agriculture taking the lead.  

 

This legislation is an investment in our future and in our prosperity.   All the major agriculture groups in Illinois supported this legislation including IFCA, Farm Bureau, Corn Growers and Soybean Association.  Environmental groups also supported the legislation as sign of their interest in supporting voluntary programs that reduce nutrient losses to water.  This signifies a concerted effort on everyone's part to work together to ensure that Illinois remains a leader in nutrient utilization and productivity.  We choose not to be an example of failure to respond to the regulatory challenges facing nutrient use. 

 

If you have immediate questions please contact Jean Payne at (309) 827-2774.  Thank you for your attention to this important matter and for your support of the IFCA and our organization's leadership on this important issue.