| Rep. Dennis Rehberg, R-Mont., would like to get agricultural
value-added projects off the ground and keep more money in the
state for its largest industry.
Hes working on legislation that would provide incentives
for such projects. At the same time, President George W. Bushs
first budget would eliminate federal programs that have the
same end.
Rehberg met Wednesday in Bozeman with representatives from
government, state and private organizations to talk about
improving Montanas economic outlook through value-added
agriculture.
Rehberg left Washington last Friday and the presidents
budget was released Monday.
It was a smart move on the presidents part,
Rehberg said. The executive gets to lay the groundwork. I
havent seen the presidents budget, so it is hard to
comment on it.
He had indicated that he intended to zero out earmarked
programs, Rehberg said referring to several items in the
Agriculture Departments 2002 fiscal year plan.
Some of those programs eliminated under Bushs budget
include a $10-million value-added agricultural product market,
the $9-million national sheep industry improvement center and
the $50-million direct business and industry loans under the
Rural Development Agency.
The Bush budget calls for a 7.7 percent, $1.4 billion
reduction in spending authority for USDA. The $17.9 billion
proposed budget does not include any disaster payments to
farmers as in the past three years. Bush has indicated he will
take care of disaster spending through a set-aside fund of
about $1 trillion.
Rehberg said his Wednesday meeting with the states ag
leaders focused on both large and small projects from ethanol
plants to cashmere wool. The roundtable, which convened at MSU-Bozeman,
is a starting point.
His introduced bills are the Value-Added Development Act
for American Agriculture and Farmers Value-Added
Agricultural Investment Tax Credit Act.
The first one authorizes $50 million in grants over three
years for the creation of ag innovation centers to provide
technical assistance to producers for value-added ventures.
The centers would have financial resources to be used for
engineering, applied research, scale production, legal
services, business planning, marketing and market development.
At the end of the program. Congress would review it to
conclude whether it should continue.
The second would provide a 50 percent tax credit up to
$30,000 per year for producers who invest in value-added
enterprises. The tax credit may be applied over a
20-year-period. The act develops a six-year program, with
congressional review at its completion to consider further
market need. The tax credit would provide a jump-start to
value-added agricultural enterprises.
Rehberg said the bill would be applicable to the pending
sale of the Western Sugar Co. plant in Billings to a sugar
beet farmers cooperative. The bill has a retroactive
effective date of Jan. 1, 2001. |