Gross Idea Meets Memorable Message

In Illinois, surviving in the state’s contentious political climate forces an association such as ours to define itself in meaningful ways in order to get its image, mission, and policies across to legislators and regulators in a way that is memorable to them. And we mean memorable in a positive light.

When the words “fertilizer and chemical” appear in your association name, some might say that is a challenge. But the Illinois Fertilizer & Chemical Association (IFCA) board of directors and members feel proud of what they do every day to serve their customers, the consumer, and their communities. Maybe our association isn’t politically correct, but we know who we are. We believe that with the right attitude, dedication to compliance, and a good environmental track record, we will continue to cultivate the trust and respect of government officials and the general public. But everyone needs to freshen up their image once in a while, which IFCA did recently.

Supply/Service/Stewardship are the words and the image that IFCA has chosen to identify itself and to represent what its members provide every day to their customers and to the industry as a whole. While Illinois is a major ag state, the business climate is not always what we wish it could be, or should be. A staggering state budget deficit and a large urban population base in Chicago continually force the legislature to look at creative ways to plug budget gaps and to expand government programs for a diverse population. Although agriculture is by far the largest industry in the state, those who work and vote on behalf of ag and rural communities account for less than 5% of the state’s population.

The Latest Challenge

This year, our governor is proposing to tax the gross receipts of all Illinois businesses that supply goods, as well as applying an additional tax on services. For manufacturers, wholesalers, and retailers, the gross receipts tax is 0.5%. For services, it is 1.8%.

In an industry of high volume, low margins, and services that are expected but not always appreciated, this proposal is devastating. It is devastating to all industries at the levels being proposed. Despite the belief of some — including the governor — that a gross receipts tax can be diluted by business and passed along to the consumer (for us, the grower), our association and its members know that doesn’t work in the ag input business.

Our association will be fighting this proposal just as it fought, and won, a proposal in 2004 to apply the state sales tax to agricultural inputs. I’m sure the five states that neighbor Illinois are watching closely. Our association has nothing against ag input suppliers in Wisconsin, Iowa, Missouri, Indiana, and Kentucky, but frankly we are opposed to giving them a competitive advantage and the ability to cross the state border and sell fertilizer, chemicals, seed, feed, fuel, and equipment in Illinois, free of tax obligation, when our members are shouldered with it.

So it comes back again to this: Supply/Ser­vice/Stewardship. IFCA will be telling its legislators that our members can’t competitively supply product with a gross receipts tax burden. They can’t offer professional service with an additional service tax burden. They can’t promote stewardship when stripped of the financial ability to maintain environmentally sound facilities and hire professionals to apply crop protection products in a judicious manner. Legislators will hopefully realize that someone will be meeting the needs of the Illinois grower. Should it be the IFCA members that believe in stewardship and enhance the economic climate of their local community or should it be someone from another state that hasn’t made an investment in Illinois?

Our association will be working diligently to present its arguments. I trust that this message will be heard by our legislators and that it will be memorable to them as they prepare to vote on the state budget this spring.

Leave a Reply

Stewardship Stories

Young Corn Field
StewardshipStudy: Ohio Farmers Doing ‘A Good Job Of Managing’ Phosphorus Levels
September 27, 2016
Leaders from Ohio’s largest grain farming organizations announced today that Ohio farmers are doing their part in effectively managing phosphorus Read More
StewardshipMonsanto Invests $1.6 Million In System To Quantify Greenhouse Gas Reductions
September 23, 2016
The USDA – Natural Resources Conservation Service (USDA-NRCS) recently awarded the National Corn Growers Association (NCGA) and its Soil Health Read More
Wilbur-Ellis Sedgwick Grand opening 2015
CropLife 100Wilbur-Ellis Receives ResponsibleAg Certification At Sedgwick Location
September 9, 2016
Wilbur-Ellis Co., a recognized leader in precision agriculture technology and the distribution of crop protection products, announces the ResponsibleAg certification Read More
Ford B. West Center For Responsible Agriculture, Asmark Institute
StewardshipResponsibleAg Conducts 1000th Audit
September 7, 2016
In less than two years ResponsibleAg has enrolled more than 2,100 facilities and recently completed its 1,000th audit. Yara’s West Read More
Trending Articles
AGCO RG700 cab
OpinionRoadblocks To Precision Ag Innovation
October 5, 2016
On August 29, I got to preside over the PrecisionAg Innovation Series event, “Game-Changing Advances in Precision Farming Technology,” developed Read More
J.C. Ramsdell containment system
EquipmentClear Opportunity In The Tank Market
October 4, 2016
Crop prices may be down, but steel prices are too — and that’s good news for retailers looking to add some Read More
WinField booth Farm Progress
Special ReportsTalking Weed Management Strategies At Farm Progress 2016
October 2, 2016
The annual Farm Progress Show — this year staged in Boone, IA — is always a great place to catch Read More
Corn Field
Eric SfiligojFacing Ag Industry Challenges
September 26, 2016
At the 2016 annual Mid America CropLife Association (MACA) meeting in September, a pair of crop protection company representatives discussed Read More
Bayer Monsanto
Crop InputsBayer-Monsanto Mega-Merger: 6 Things You Need To Know
September 14, 2016
Mega mergers have become almost routine in the agricultural industry. Right on the heels of Monday’s news that fertilizer giants Potash Read More
Potash Corp Agrium
Crop InputsAgrium, Potash Corp To Merge To Create $36 Billion Company
September 12, 2016
Canada’s Agrium Inc. and Potash Corp of Saskatchewan Inc. have agreed to combine in a deal that would create a Read More
Latest News
Kennebec Grain terminal
CropLife 100Wheat Growers Kennebec Facility Loads First Rail Cars
October 21, 2016
In a season of firsts for Wheat Growers’ Kennebec Grain Terminal, the first 115-car unit train was loaded with soybeans Read More
ManagementThe Latest Dow-DuPont Rumor, Product of the Year Voting…
October 20, 2016
CropLife Editor Eric Sfiligoj shares a new rumor about the Dow-DuPont merger and updates on two CropLife-driven programs, the CropLife Read More
Soybean Closeup
FungicidesFMC Begins Registration Process For New Fungicide Activ…
October 19, 2016
FMC Agricultural Solutions has begun the joint U.S. EPA and Canadian Pest Management Regulatory Agency registration process for bixafen, a new Read More
Soil Young Corn
Industry NewsAgribusiness Search Firm Appoints New Managing Partner
October 18, 2016
Morris Bixby Group, a leading agribusiness search firm providing the highest quality professional recruiting and career advancement services since 2000, Read More
Wheat Field North Dakota
FertilizerUnited Suppliers Acquires Kansas Fertilizer Business
October 17, 2016
United Suppliers, Inc. has purchased the assets of Evans Enterprises, LLC, an ammonium chloride fertilizer business based in Olathe, KS. Read More
Corn Field
Industry NewsFMC Launches New Operations In Argentina, Exits Joint V…
October 17, 2016
FMC Corp. has exited its joint venture with Ruralco Soluciones S.A. FMC has launched new commercial operations, FMC Quimica S.A., Read More
Dow AgroSciences
InsecticidesRenewed Registration Issued For Products Containing Sul…
October 17, 2016
On October 14, 2016, the U.S. EPA re-established the registration of products containing sulfoxaflor (Isoclast Active), including Transform WG, Closer Read More
Eric SfiligojThe Whys Of Agriculture
October 17, 2016
During 2016, there have been myriad challenges facing the whole agricultural industry. Such wide ranging issues as water protection, sustainable Read More
Young Corn Field
FertilizerImproved Phosphorus Management Essential To Feeding Wor…
October 14, 2016
With a global population expected to reach 9 billion people by 2050, improved management of key essential nutrients such as Read More
ManagementHarvest and Crop Price Updates; EPA and Crop Protection…
October 13, 2016
Glyphosate and atrazine get public comment support from ARA as each is reviewed by EPA, and the latest on the Read More
Matt Hopkins15 Twitter Accounts Every Ag Professional Must Follow
October 13, 2016
What do singer Katy Perry and the President of the United States have in common? They are two of the Read More
Corn Field
Industry NewsArysta LifeScience Adds Two Key Account Managers
October 13, 2016
Arysta LifeScience North America recently announced the addition of two key account managers: Doug Hoberty and Rob Wier. Hoberty and Read More
EquipmentDeere Announces Development Deal with Scherer Design
October 12, 2016
Deere & Co. announces a joint development agreement with Scherer Design Engineering, Inc. to develop and commercialize kernel processing solutions Read More
Crop InputsMarrone Bio Innovations Celebrates 10 Years Of Innovati…
October 12, 2016
Richard Rominger, former Deputy Secretary of the USDA and former agricultural secretary of California, emceed a 10th anniversary luncheon celebration on Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Industry NewsVive Crop Protection Closes Financing To Support Corpor…
October 11, 2016
Vive Crop Protection has announced the closing of growth financing to support 2017 commercial expansion. The financing was led by Read More
SoftwareHD Precision Analytics Launches New Mobile App For Agri…
October 11, 2016
AGSentry from HD Precision Analytics is a Software-as-a-Service (SaaS) platform that offers simple data service and actionable analytics tool. It focuses Read More
HerbicidesWeed Control And Soil Health Go Hand-in-Hand
October 10, 2016
Although many landowners may not give much thought to weed control as a soil health measure, Gared Shaffer, South Dakota Read More
Students Soybean Field
Eric Sfiligoj2016 Young Leaders Speak
October 10, 2016
One of the consistent cries in agriculture today is the need to try and connect with the younger generations, attempting Read More