Chuck Hartke

Agriculture is undergoing a fundamental change, from a producer-oriented to a consumer-oriented industry. This means the farmers of tomorrow — unlike their predecessors — will no longer be able to merely sell what they grow and still remain competitive. Instead, they will have to grow what sells. The depressed farm economy the past few years has only accelerated the pace of this change.

Governor Blagojevich and I are striving to provide the tools farmers need to maintain their leadership position in the global marketplace.

The governor signed legislation June 11 that will create additional demand for our corn and soybeans, increased investment opportunities for our farmers, and new jobs in our rural communities. House Bill 46 extends the state sales tax exemption for corn-based ethanol, establishes a new tax credit for soy biodiesel, and starts a new grant program to encourage the development of plants that produce renewable fuels.

Biofuels already are an important part of our agricultural economy. Illinois currently produces 680 million gallons of ethanol a year, more than any other state in the country. But, the potential production — and impact on our agricultural economy — is much greater than that. Ethanol now accounts for only 1 percent of fuel sold at gas stations. Consumption, however, is poised to increase four-fold in the next few years under the new renewable fuels standard moving through Congress. House Bill 46 positions Illinois to take advantage of this enormous opportunity. According to the Department of Commerce and Economic Opportunity, each new plant created by the legislation will increase the local price of corn 5 to 10 cents a bushel, provide an average 13 percent annual return to farmers who invest in the plant, and create about 40 full-time jobs.

The governor also has included $400,000 in incentives in his agriculture budget to promote the development of "value-added" ventures. "Value-added" ventures are businesses that process farm commodities into marketable food and agricultural products, enabling producers to earn a larger share of the consumer dollar.

The incentives are provided through AgriFIRST, the Illinois Department of Agriculture's economic development program, and help cover the start-up costs of qualified projects.

The importance of "value-added" ventures cannot be understated. The future of Illinois agriculture rests with its ability to identify its customers' needs and create new uses for its agricultural production. These incentives will spur the innovations needed to increase demand for our crops and livestock, keep Illinois competitive in the global marketplace and build profitability for the food and fiber industry.

A 12-member council of farmers and agriculture leaders will provide the governor and me with valuable assistance as we position Illinois agriculture to take advantage of marketplace changes.

The Governor's Advisory Council for Farmers and Farm Families was formed July 22 and has ambitious and wide-ranging objectives. In the area of economic development, members will work to spur the growth of new agribusinesses and complete infrastructure improvements that are essential to deliver farm commodities to markets. They also aim to improve farm families' access to technology and health care.

The council's market development objectives include identifying the tools necessary to exploit growth opportunities in specific sectors of agriculture and opening new foreign markets to Illinois agricultural products.

The council also aspires to raise awareness about the impor-(Continued on page 6)

Chuck Hartke was named as Interim Director of the Illinois Department of Agriculture on April 28, 2003, and confirmed by the Senate on May 16th, 2003. As a state representative he served the 108th District starting in 1985. The opinions and views of guest commentators are their own and may not represent those of the Association of Illinois Electric Cooperatives or the electric co-ops of Illinois.

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tance of agriculture to preserve farmland and foster community support for an expansion of the livestock industry. And, it intends to work with government in an effort to make sure agriculture regulations permit farmers to keep producing food.

Farmers now make up less than 2 percent of our population. But, they are growing more food on less acreage than ever before. And, this vast production provides the foundation for a diverse, multi-billion dollar industry that employs nearly 25 percent of the state's workforce. About one of every four Illinoisans has an agriculture-related job, and they're not all rural residents either. Illinois is home to 1,700 food companies, many located in the Chicago area, and thousands more agribusinesses.

The short-term outlook for the industry remains challenging. But, the steps initiated by Governor Blagojevich during this cyclical downturn will position Illinois agriculture for a profitable future once an economic recovery is complete. And, preserving a viable industry is the best encouragement I know of that we can provide to farmers and their families.

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