Governor Jim Doyle today announced today that Wisconsin’s dairy entrepreneurs have invested more than $500 million to modernize and expand their operations thanks to the dairy investment tax credit signed into law by the Governor in April 2004.
“Agriculture is our heritage, and it is also our future,” Governor Doyle said. “Agricultural entrepreneurs are boosting rural economies by significantly reinvesting in their operations. The state is proud to be a partner in helping Wisconsin’s dairy industry modernize and expand.”
The dairy investment tax credit provides an incentive for dairy farmers to invest in modernization, expansion and new technology. With the tax credit, each farm operation is eligible to reduce its tax burden by up to $50,000. This can be stretched over a several year period. For every $10 dollars a farmer spends, there is $1 reduction in tax burden.
As a result of their investments, dairy farmers have been able to reduce their state tax burden by $50 million.
The Governor also commended those in the industry who have applied for business development grants and used technical assistance to boost profitability. Since 2004, the state has partnered with the dairy industry by directly investing more than $13 million in grants and assistance to reinvigorate the state’s dairy infrastructure.
“The demand for innovation grants from Wisconsin dairy producers and processors proves America’s Dairyland is vibrant and growing,” Governor Doyle said.
The dairy investment tax credit and grants available as part of the Value Added Dairy Initiative are just two components of a comprehensive plan to reinvigorate dairy featured in the Governor’s Grow Wisconsin plan to create jobs. Other components of the plan include reforming livestock siting and permitting; providing a competitive tax structure; laying the foundation for quick response in the event of an animal disease outbreak; and laying the foundation for reducing health care costs for farm families.
Dairy generates $20 billion annually for the state’s economy or $39,000 a minute.
