SHOULD COTTON FARMERS BE FORCED TO PAY FEE TO PROMOTE COTTON?

In my daily reading, Hill Spirit came across this item.  Cotton in northern Alabama isn't as big as it once was and this might not mean much to you but isn't enough things required by the government? Hill Spirit normally votes no on Alabama constitutional amendments.  It has to be something really important before I vote to add more things.  Remember 5% of voters will determine this one. If this needed doing, why isn't it on ballot in November.

Here are the Pros and Cons of this amendment:

Vote Yes?
The amendment is widely supported by the state's farming community, including the Alabama Cotton Commission, Cotton Incorporated and the Alabama Farmers Federation State Cotton Committee.

Those in favor of Amendment 1 point out that checkoff money helped fund research for the boll weevil eradication program, which increased yields and reduced pesticide use. Its proponents also argue the program has also helped farmers reduce yield losses from pests such as stinkbugs and nematodes while protecting the soil and environment.

"The research and cotton policies funded by the Alabama cotton checkoff program have kept our family farm in business," said Autauga County farmer Jimmy Sanford, chairman of the Alabama Cotton Commission, in a news release.

The commission, a board of 11 cotton farmers who serve as unpaid volunteers, is responsible for disbursing checkoff funds.

"This amendment is a fairness issue with us," he said. 

"We think it's time for all of us cotton farmers to

have a uniform stake in what needs to be done. And we're asking the general public to allow us to have that uniform voice by voting 'yes' on this amendment. Voting in favor of Amendment 1 will help cotton compete nationally and globally in the fiber market."

Vote No?

The following is by Trey Edwards of Alabama Legislative Alert Blog. Link to full article.

What is Amendment One?

Currently, Constitutional Amendment 388 allows for cotton producers to voluntarily donate to a fund that promotes the cotton industry in the state of Alabama. This is done through a $1/bale fee that is automatically collected. Any farmer that does not wish to participate in the program can request a full refund of the money at the end of the year. Last year, $40,000 was refunded (1). According to the USDA, estimated cotton production in Alabama was 620,000 bales in 2013, down significantly from 745,000 bales in 2012, meaning approximately 6.5% of the money was refunded to farmers who did not wish to participate in the program.

Amendment One would change this program so that it is no longer voluntary – every farmer would be mandated to pay the fee and would not be able to request a refund. Cotton production was significantly down last year due to untimely weather(3). This would generate by my estimation another $40,000-$60,000/year for the fund, depending on production levels – with 2013 being an uncharacteristically low yield year.

This is a NEW mandatory government fee that was not required beforehand. Therefore, by definition, it is a NEW TAX. It wasn’t a tax beforehand because it was not mandatory. It is now mandatory, therefore it is a tax. Keep in mind that in the recent Supreme Court ruling regarding Obamacare, a mandatory fee imposed by the government was considered a tax.

Where do you stand?
I oppose Amendment One, and I ask you to vote NO on July 15th.  I firmly oppose all new taxes. This will take a minimum $40,000 – $60,000 per year out of the pocket of our Cotton Farmers against their will, with the fee amount being left up to the cotton groups as a whole. Think of it as like a union. All Cotton Farmers get to vote on how much the fee is, and all are required to pay it. So the majority of cotton farmers can raise the amount higher if they want, putting an even bigger burden on the others. I’m not familiar enough with the internal politics of the cotton industry to know if the system gives a voting advantage to the large farms or the small farms. 

I think this is a great voluntary program, but they should be required to live within their means like the rest of us. They had a bad year due to weather and lost a significant amount of money. Their reaction to that is perfectly natural – to shore up their income base by making it more predictable from year to year. I understand and sympathize with that reaction. But it cannot be done at the cost of the business owner and the taxpayer. This will cause cotton prices to rise, and affect the bottom line for all of us, by affecting the prices of our clothes and many other items we use regularly that contain cotton.