Heineman told to keep hands off

LINCOLN — Three decades ago, sitting on a pile of surplus corn that could fill almost 1.2 million railroad cars, Nebraska farmers took a giant step.

They convinced the Legislature to allow them to tax themselves, using the money to market the excess corn.

The result was the state's corn checkoff program, which generates about $3.2 million a year from a per-bushel fee of up to 0.4 cents on sales of corn.

The money finances corn-related research at the University of Nebraska, provides an ethanol-fueled van for Future Farmers of America, and pays for distributing free coffee cups made of corn-based derivatives at the State Fair.

The dollars also help cattlemen with their “Beef, It's What's for Dinner” advertising blitz.

Now the checkoff programs are at the center of a political feud.

The state's major farm groups have taken aim at their longtime ally, Gov. Dave Heineman, over his plans to take about $672,000 from checkoff programs to help solve the state's budget crisis.

While the amount is small in proportion to the $334 million budget hole, farmers are madder than wet hens.

The checkoffs for corn, wheat, dry beans and sorghum were set up, they say, to benefit their products — not to finance the general operations of government.

“The governor often says the strength of Nebraska's economy is in agriculture. I question his sincerity,” said Dan Hughes, a Venango farmer and president of the Nebraska Wheat Board.

Jen Rae Hein, the governor's spokeswoman, said only surplus funds held by the commodity groups are being targeted.

The $672,000 in cash from the checkoff funds would be on top of 2.5 percent and 5 percent budget cuts, respectively, that most state agencies are taking this year and next.

Hein said how the commodity boards use the money is not the issue. It's that all state agencies need to contribute to solving the state's budget woes.

“The governor has been and continues to be a strong supporter of agriculture,” Hein said. “The proposal for shared sacrifice doesn't change that.”

At the State Capitol, it's hard to find a lawmaker who defends Heineman's checkoff plan. Many have been inundated with e-mails and calls from angry farmers.

Even some urban lawmakers, like State Sens. Brenda Council and Heath Mello of Omaha, were among the 13 co-signers for a bill to stop the raid of checkoff funds. The measure was introduced by Sen. Annette Dubas of Fullerton during the special session.

But privately, some officials wonder how well the checkoff money is being spent. If there's a surplus in those bank accounts, why can't it be used to help bail out the state?

Sen. LeRoy Louden, from the Sand Hills hamlet of Ellsworth, opposes taking checkoff funds paid by ranchers for brand inspections. It's a necessary expense. Cattle, he said, can't be sold without such inspections.

The fancy ads that grain checkoff programs finance, Louden said, maybe aren't so essential.

Officials with the grain boards say that's naive and that ranchers benefit mightily from meat marketing efforts that get funds from grain checkoff programs.

A check of the checkoff monies shows a variety of uses, including some that might be questioned when times are tough in state government.

The Corn Board, for instance, is spending $49,518 this year for ads that run during Nebraska football games and call-in shows.

It's advertising that reaches a big audience, with an important message, according to Corn Board officials — that farmers are more efficient than ever, and that ethanol is not raising the cost of food.

The bulk of its money, about $1.5 million a year, is spent on domestic and international marketing of corn though groups like the U.S. Meat Export Federation and the National Corn Growers Association.

Alan Tiemann, a Seward farmer and president of the Corn Board, said such funds help Nebraska farmers earn more and, in turn, pay more taxes.

The Nebraska Wheat Board helped finance an unusual promotional event last year — a “wheat field” mounted on 300 wooden pallets at the corner of Water and South Streets in New York City.

The board sent four representatives to the Big Apple as tour guides and to assist with bread and baking demonstrations.

Hughes, the Wheat Board official, defended the expense, saying it was a joint effort with the Wheat Foods Council promoting whole grains in the nation's largest city. He said it was launched well before the recession hit home.

“Our goal is to increase the consumption of wheat,” he said.

Hughes told lawmakers last week it takes 10 years to develop better-yielding, disease-resistant yields of wheat. Heineman's proposed cutbacks will disrupt that, he said, and cut funds flowing to the university.

He and other checkoff officials said cash reserves are essential. If the funds ran out of money and there's a crop failure, there would be no dollars to finance their marketing, research and promotional activities.

Keith Olsen of Grant, president of the Nebraska Farm Bureau, said he expects some farmers to file lawsuits if the taking of checkoff funds is approved.

Agriculture officials say there are alternatives to dipping into checkoff funds, including wage and hiring freezes.

State Sen. Tom Carlson of Holdrege and others suggested that state workers voluntarily take a pay cut in exchange for a pledge that they wouldn't be laid off.

As for the political fallout, when asked if Heineman would get the Farm Bureau's endorsement in 2010 — as he did in 2006 — Olsen declined to say, even though the governor is the only candidate in the field right now.

“Ask me next spring,” he said.

Contact the writer:

402-473-9584, paul.hammel@owh.com