Sioux City Journal, IA
09-20-06
Cherokee County offers tax incentives for organic farming
CHEROKEE, Iowa -- The Cherokee County Board of Supervisors on Tuesday became the second county in the United States to offer farmers property tax incentives to convert to organic farming practices.
The Organics Conversion Policy will provide up to 100 percent of county tax levy relief annually for up to five years to growers who convert from conventional to organic farming practices and become certified organic farmers. The policy is designed to promote the return of smaller farms and provide options for diversity in agricultural practices.
The policy is similar to one enacted in Woodbury County in 2005.
"Our goal is to encourage agriculture and its diverse practices and to make it possible for the new farmers to get started or to come into an existing operation without a huge cash outlay for the number of acres required in conventional farming, and yet allowing them to realize the same amount of profitability," said Mark Buschkamp, executive director of Cherokee Area Economic Development Corporation, which guided the plan with the county board. "We hope for more people living on the land, more people in our county and more kids in our schools."
The program is designed to make farming a more economically viable profession for young Iowans who wish to remain in the area or for older farmers wishing to bring a family member into the business.
More than half of all farmland is owned by individuals older than 55. It is expected that more than half of all Iowa farmland will change ownership within the next 10 years, which could mean further expansion of ever-larger farms.
The organic food market is growing at an annual rate of 20 percent, while domestic supplies of many organic crops fall short of current demand.
"This policy validates organic farming as an option in western Iowa," said Sen. Ron Wieck, R-Sioux City, whose district includes Cherokee County. "With Whole Foods of Omaha announcing plans to buy organic foods from this area, we know the market isn't just coming, it's already here. We have a burgeoning organic industry here."
Farmers who take advantage of the tax incentives will receive support from the Iowa Department of Agriculture and Land Stewardship, the Leopold Center, which is located in Ames, Iowa, the Iowa State University Extension office and regional organic growers.
Organic Valley, a producers' cooperative, also offers support to farmers converting to organic methods. The co-op offers the "Transition to Organic Fund," a financial assistance program to help offset the costs for dairy farmers who are transitioning to organic. For more information about Organic Valley, call the producer hotline at 800-809-9297 or visit online at www.organicvalley.coop.