HB 1486 TESTIMONY
The Grain Dealers Association opposes this bill.
The Wheat Commission is against it due to expected increased
refunding, use of and accountability for funds.
We agree. We also
don’t think it is the business of the grain elevators and Commission
to collect dues for private organizations that over 90% of wheat growers
have not voluntarily joined. Grain
Growers and Durum Growers have said their memberships are about 1500,
and some of that is double-counted because of dual memberships.
There are about 20,000 wheat producers in ND. We do not want to see
the core programs of the Wheat Commission in market development, product
promotion and research jeopardized by increased refunding.
That is not good for farmers, grain elevators or the state.
The Grain Dealers Board of Directors met with representatives of
the Grain Growers and Durum Growers Associations prior to our convention
in January. Later in the
convention our delegate body of farmers and managers unanimously passed
a resolution in opposition to the bill, in concurrence with the
Commission. That
resolution is part of this testimony.
It points out the 40-year cooperative and productive relationship
of the Wheat Commission and Grain Dealers Association, working together
and supporting each other on product promotion, railroad, grain quality,
and other issues. The
resolution plainly states why we have a vested interest.
Country grain elevators have collected that Wheat Commission
checkoff since 1959. They
take part in hosting trade teams that develop or enhance wheat
marketing. They participate
in various quality surveys. Our elevators enjoy increased sales due to
Commission activity. We do
not want to risk farmer dissatisfaction due to an untimely checkoff
increase and its diversion to other uses.
HB 1486 is a unique concept in North Dakota commodity checkoffs,
in that it mandates in the statute a portion of the checkoff to
be distributed to private groups. We
doubt the wisdom of setting such a precedent.
Where is the accountability for these funds?
And maybe other groups deserve a share -
Farm Bureau, Farmers Union, or Grain Dealers.
Elevator managers are the front line of defense for checkoff
groups. When the farmer
questions why that levy has been taken off, most elevator managers point
out the product promotion work being done and discourage refunding.
Our members don’t want to be put in the position of collecting
funds for lobbying on farm policy issues many growers don’t agree
with. We’ve heard from
several managers who think that this bill will increase refunding and
may be a net loss to the Commission. We urge a Do Not Pass on HB 1486. I’ll try to answer any questions you might have.
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