3/18/2009 8:25:00 AM Ripp pushes dairy tax credit bill
By Scott De Laruelle
Keith Ripp ran for his seat in the State Legislator as a farmer who would be true to his roots. Just a few months after being sworn in, he's authored a bill to help dairy farmers across the state.
Ripp's "Cooperative Dairy Manufacturing Tax Credit," or Assembly Bill 34, was included in the stimulus package signed into law last month by Gov. Jim Doyle. The bill allows members of a dairy cooperative to claim tax credit for up to 10 percent for modernizing or expanding dairy manufacturing facilities paid by the cooperative. Credit is capped at $200,000 per processing plant, and will be distributed to members based on the amount of milk each member delivers to their cooperative.
Helping dairy cooperatives to upgrade even during tough economic times could be a well-timed shot in the arm for the industry. Wisconsin dairy cooperatives process nearly 80 percent of the state's milk supply and manufacture about 50 percent of Wisconsin's cheese.
Fixing an oversight
Before the bill was passed, dairy cooperatives - since they are generally not subject to income taxes - were not eligible for the tax credit, which Ripp said was an oversight that he and other wanted corrected.
"The Dairy Manufacturing Tax Credit was one of the first issues I targeted, because as a former dairy farmer myself, I saw there was a need to make a change," he said. "There was legislation passed last session, and it did not include the cooperative."
Ripp said the bill, which has a corrolary that deals with meat processors, will help more than just farmers, though.
"As far as building construction and equipment they are going to need to upgrade or update, that helps manufacturing," Ripp said. "We're kind of killing two birds with one stone, because we're going to jump-start some construction with this."
Ripp said many of the hundreds of dairy cooperatives in the state will be able to take advantage of the new law.
"It will pertain to anyone handling the dairy products: milk plants, cheese plants - there may be shipping stations somewhere, they may need some upgrades," he said.
One group that stands to benefit from the new law is Foremost Farms USA, the Baraboo-based dairy cooperative is owned by 2,300 dairy farmers from Wisconsin, and other Midwest states. In 2008, those farmers marketed nearly 5 billion pounds of milk through the cooperative, generating revenue of $1.6 billion.
Foremost Farms USA director of communications Joan Behr said cooperative members have re-invested more than $300 million on their processing facilities since 1995, and this will help reduce those costs.
"This legislation will enhance and promote re-investment in the Wisconsin manufacturing infrastructure which is key to the growth of our state's dairy industry at the farm and marketing levels," she said. "We applaud Gov. Doyle and Rep. Ripp for including the dairy cooperative investment tax credit in the state stimulus package."
Reader Comments
Posted: Tuesday, March 31, 2009
Article comment by:
Robert
Boy howdy, isn't it great how Keith Ripp takes credit for the stimulus bill when he voted against it?
What a coward. If Ripp thought the stimulus was SO BAD that he voted against, he needs to stand up to his constituents and tell them the truth.
