A Clean-Up Issue

Wisconsin benefits from an Agricultural Chemical Clean-up Program (ACCP) designed to provide funding for inadvertent chemical spills primarily on farm and retail locations. The rules outlining collection and use of the fees are administered by the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).

A spill clean-up surcharge of 0.95% is imposed by DATCP on chemicals sold within Wisconsin by chemical manufacturers referred to as registrants. The fee is paid by registrants at the beginning of the year based on projections of sales in previous years. Fees are then administered by DATCP for distribution of payment associated with requests for clean-up projects connected to farm and farm supply retail operations.

The Wisconsin clean-up fee is the highest among all states that have such a program. Many states have no such program or clean-up fee associated with sales of agricultural chemicals.

Registrants who sell product within Wisconsin cover the fee throughout the year by passing it down the sales chain through the wholesale distributor, retailer, and/or farming operation. Distributors and retailers similarly pass the cost of the fee through surcharge to the grower.

Since purchase of products within Wisconsin is not required by law to participate in the clean-up program, many farming and retail operations purchase product from outside of the Wisconsin-based system. This has also led to new business models that are oftentimes not compliant with other requirements such as licensure, recordkeeping, and secondary containment.

Optional purchase strategies by individual businesses that purchase some or all of their product through non-Wisconsin-related channels has collectively led to significant disparity in the operational overhead of farming and retail operations within the state. Those organizations that purchase chemicals through non-Wisconsin channels and have not contributed equally to the Wisconsin ACCP fee are at an advantage since they are equally able to access funds in the event of a spill.

The Big Picture

Taken together, the advantage of reduced cost associated with purchase of product outside of the Wisconsin-based markets, as well as the ability to access clean-up funds regardless of participation, has created a system that encourages import of agricultural chemical products within Wisconsin. Also, access to clean-up funds by businesses that do not fully support the ACCP increases the burden on the fully participating farms and businesses that do contribute within Wisconsin — which may explain in part why the fees are the highest in the country. Because the program has led to an economic disadvantage to those farming and retail operations that support the system, a change must be introduced that creates fairness.

WCPA is currently evaluating different models that will provide parity in the collection, administration, and use of ACCP fees. These include potential restructuring of statute language, sunsetting the current program and redesigning a new one, and exploring the potential of developing an industry-supported group insurance program.

Whichever model WCPA decides to engage, it is clear that individual insurance claims should not be honored if individuals are not paying associated premiums. The ultimate program that WCPA decided upon will also not encourage businesses to adopt models that detract from the professionalism and credibility that the industry deserves.

Leave a Reply

Stewardship Stories
StewardshipA Multi-Layered Approach To Water Quality
October 6, 2014
Illinois event highlights research and technology designed to better monitor and improve water quality — and the benefits of cooperative, coordinated effort. Read More
StewardshipMichigan Agriculture Leaders On Toledo Water Ban: We Want To Be Part Of The Conversation
August 8, 2014
Leaders of Michigan agricultural organizations said Thursday that the government should not have a “knee-jerk reaction” based on last weekend’s water ban in Toledo due to fertilizer run-off in Lake Erie. Read More
StewardshipBayer Lands Honor For Bee Care Center, Other Initiatives
June 3, 2014
Bayer Corp. has been named a 2014 Responsible Care Company of the Year by the American Chemistry Council, thanks in large part to its Drive Toward Zero initiative and North American Bayer Bee Care Center. Read More
StewardshipStrip-Tillage: A Sustainable Effort
March 3, 2014
As sustainable agriculture grows in popularity, interest in custom strip-tillage is growing. Read More
Top 100 Articles
Milan Kucerak, president/CEO, West Central
CropLife 100West Central Cooperative And Its New President Are A Match Made In Deviation
June 29, 2015
To appreciate just how unique West Central Cooperative is in the world of ag retail, an observer need only consider Read More
Winter Wheat
CropLife 100South Dakota Co-op Member Owners Vote No On Unification
June 26, 2015
The Boards of Directors for North Central Farmers Elevator (NCFE) and Wheat Growers (WG) have announced that member-owners have voted Read More
CropLife 100The Andersons Acquires South Dakota Plant Nutrient Manufacturer Kay-Flo
May 20, 2015
The Andersons, Inc., ranked No. 22 on the CropLife 100, has purchased Kay Flo Industries of North Sioux City, SD. “This Read More
CropLife 100North Central Farmers Elevator, Wheat Growers Unification Approved By Board, Still Awaits Member Approval
May 13, 2015
The Boards of Directors for North Central Farmers Elevator (NCFE) and Wheat Growers (WG) have voted to approve the Unification Read More
CropLife 100AgGateway’s Barcoding Initiative Progressing Nicely
May 8, 2015
According to legend (or Wikipedia), the first step towards modern bar codes came back in 1948, when Bernard Silver, a Read More
CropLife 100Pinnacle Agriculture Acquires Minnesota Retailer
April 14, 2015
Pinnacle Agriculture Holdings, LLC, ranked No. 6 on the CropLife 100,  has successfully acquired Liebl Ag, LLC in Ada, MN.  Read More
Latest News
The McGregor Co. fertilizer loadout
Retail FacilitiesThe McGregor Co. Partners With Kahler Automation To Cre…
June 30, 2015
Kahler Automation helped The McGregor Co. expand its Clarkston, WA, operation with unstaffed loadout technology that enables customers to pick Read More
Dry and Liquid Plant
Retail FacilitiesKahler Automation Helps CHS Dakota Ag Cooperative Build…
June 30, 2015
CHS Dakota Ag Cooperative in Mooreton, ND, wanted a liquid/dry blender system that could meet the needs of its customers Read More
Crop InputsLand O’Lakes, United Suppliers To Merge Crop Inpu…
June 29, 2015
Land O’Lakes, Inc. and United Suppliers, Inc. of Ames, IA, today announced their intent to merge their crop inputs businesses. Read More
FungicidesHelena To Distribute Unique Summit Agro Fungicide
June 29, 2015
RANMAN 400 SC fungicide, the only fungicide with a FRAC group 21 designation, is now part of the innovative Summit Read More
Eric SfiligojIARC Targets 2,4-D In Latest Report
June 29, 2015
The International Agency for Research on Cancer (IARC) has struck again. Earlier this year in March, this agency of the Read More
Milan Kucerak, president/CEO, West Central
CropLife 100West Central Cooperative And Its New President Are A Ma…
June 29, 2015
To appreciate just how unique West Central Cooperative is in the world of ag retail, an observer need only consider Read More
EquipmentCase IH Launches New Precision Air 5 Series Carts
June 29, 2015
Case IH recently introduced its new Precision Air 5 series air carts, developed to get the most from every plant’s Read More
InsecticidesVestaron Biopesticide Approved In California
June 29, 2015
Vestaron Corporation, a developer of insect control products derived from naturally occurring peptides, today announced that its VST-006330-EP biopesticide has received Read More
InsecticidesValent’s Zeal SC Miticide Receives EPA Approval
June 29, 2015
Valent U.S.A. Corporation announced today that Zeal SC Miticide has been registered by EPA with a new liquid formulation that Read More
Retail FacilitiesUnited Prairie Increased Plant Productivity With Junge …
June 29, 2015
Since 1979, Junge Control continues to provide ag retailers with highly accurate fluid and dry ingredient measuring, mixing and tracking Read More
Winter Wheat
CropLife 100South Dakota Co-op Member Owners Vote No On Unification
June 26, 2015
The Boards of Directors for North Central Farmers Elevator (NCFE) and Wheat Growers (WG) have announced that member-owners have voted Read More
ManagementAsmark Training Center Visit & A Merger No Go
June 25, 2015
CropLife Editor Eric Sfiligoj talks about a visit to the Ford B. West Training Center and the failure of the Read More
Crop InputsWinField: Here’s What We’re Seeing So Far T…
June 25, 2015
One of the most important things you can do throughout the season to help increase yield potential is to ensure Read More
Valent, Commodity Classic 2015
Industry NewsValent Garners FFA Honor
June 23, 2015
Valent U.S.A. Corporation today announced it has been named a 5-star member of the National FFA Foundation. This includes an Read More
Nester Ag intern Brad Nester
Crop InputsOhio NRCS’ New Conservation Practice Standard For Gypsu…
June 22, 2015
Ohio farmers wishing to use gypsum to improve soil quality now have access to technical information and possible financial assistance Read More
Industry NewsWest Central Creates New Executive Team
June 22, 2015
West Central Distribution, LLC officially announced the development of an executive team comprised of Dale Engan, chief executive officer; Michael Read More
MicronutrientsVerdesian Life Sciences Invests In People, Agricultural…
June 22, 2015
In mid-February, the USDA released its new 10-year agriculture projections. While the numbers are new, the theme was consistent. The Read More
Young corn plants
Crop InputsStudy: Crop Rotation Has Positive Impact On Soil Microb…
June 22, 2015
A study authored by Michigan State University (MSU) Department of Plant, Soil and Microbial Sciences assistant professor Lisa Tiemann is Read More