Wisconsin Farm Bureau Federation: Ag tax credits will spur growth in value-added industries

Contact: Casey Langan, Director of Public Relations

608-828-5711

MADISON – Two important items for agriculture have found their way into the state stimulus package released today by Governor Jim Doyle and legislative leaders.

“Inclusion of a pair of income tax credits that impact meat and cooperative-owned dairy processing plants will create more jobs, spur more economic activity, and strengthen our dairy and livestock sectors, said Bill Bruins, president of the Wisconsin Farm Bureau Federation. “Both of these items have been recent legislative priorities for Farm Bureau and therefore we appreciate seeing them in this proposal.”

The dairy cooperative investment credit will allow members of a dairy cooperative to claim a credit for 10 percent of the amount paid for dairy manufacturing modernization or expansion expenses.

“This reflects the intent of past legislation by making both cooperative-owned and proprietary plants eligible for this credit,” Bruins said. “This comes at a critical time when many of Wisconsin’s dairy plants are operating near capacity. A thriving dairy industry depends on their ability to grow their businesses.”

“We were appreciative when State Reps. Amy Sue Vruwink and Al Ott recently offered these proposals as legislative bills, and now we look forward to seeing them quickly implemented,” he said.

The meat processing facility credit will allow meat processors to claim a credit for 10 percent of the amount paid for meat processing modernization or expansion costs.

“The 2007 U.S. Farm Bill included a provision that allows state-inspected meat plants to ship their products across state lines, and Wisconsin leads the nation in the number of these small meat plants,” Bruins said. “Once the Farm Bill removed this federal roadblock, it provided an even greater impetus for Wisconsin to foster growth of these home-grown businesses.”