Leaders of the Nebraska corn industry are proposing an increase to the state’s corn checkoff.
State Senator Terresa Ibach introduced a bill proposing amendments to the Nebraska Corn Resources Act, the legislation that gave rise to the Nebraska Corn Board.
The proposed changes focus on revising the corn fees levied on sales to provide increased financial support for corn-related initiatives through the checkoff. The Nebraska corn checkoff, administered by the nine farmer directors of the Nebraska Corn Board, is an investment program designed to help develop, carry out, and participate in programs of corn education, research, and market development.
The corn checkoff was established in 1978 via the Corn Resources Act, which was passed by the Nebraska Legislature.
The existing fee is 1/2 of a cent per bushel ($0.005/bu.).
The proposed amendments suggest a phased increase in the corn fee structure. Until September 30, 2024, the fee would remain at 1/2 cent per bushel. Beginning October 1, 2024, and lasting until September 30, 2031, the fee is set to rise to one cent per bushel. Subsequently, starting October 1, 2031, there is a further proposed increase to one and one-quarter cents per bushel.
The Nebraska Corn Growers Association is advocating for the change.
“Outside influences such as inflation and drought have effectively decreased that number in purchasing power to about a third of a center per bushel and it’s made us not be able to advocate for the corn industry and promote corn products,” said Michael Dibbern, vice president of the Nebraska Corn Growers Association. ” We believe that this was a step that just needed to be taken to get us up to the level that we need to be at.
Dibbern told the Rural Radio Network that increasing the Nebraska corn checkoff rate would put the state in line with some neighboring corn-producing states. According to the Nebraska Corn Board, Nebraska’s checkoff rate is tied with four other states for the lowest in the nation.
“Nebraska is one of the top-producing corn states in the nation and we want to reflect that.”
