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Texas Agriculture Archive

January 17, 2003

The rules would make engine manufacturers install devices that would reduce exhaust gases, increasing the operating costs for those manufacturers and purchasers of off-road diesel equipment.

"This is going to impose some cost on the industry and consumers, but these regulations are going to give us enormous health benefits that will far outweigh those costs," said EPA Administrator Christine Whitman.

Counters American Farm Bureau Federation lobbyist Rebeckah Freeman: "What we've seen preliminarily is that there will be a whole lot of costs for us and very uncertain benefits in terms of improving air quality."
Source: AFBF: Executive Newswatch, Dec. 30, 2002

USDA sets small grains loan rates
County loan rates for 2003 wheat, barley and oats have been set by USDA, and they are keeping the by-class structure in place.

USDA says they worked to "end potential market distortions" along some state borders that turned up for 2002 crops.

The national average wheat loan rate is $2.80 per bushel as specified in the new farm bill.

There's a 20 cent per bushel premium for amber durum; 30 cent-per bushel for hard amber durum.
Source: ProFarmer, Dec. 21, 2002

Crop export 'share' steady since 1996
Export share—the ratio of export volume to output (production volume, including stocks)—measures the portion of domestically- produced supply that is shipped abroad.

The aggregate export share of total U.S. agricultural production was 21 percent in 2001, equal to the rate in 2000 and the average since 1996. The export share of U.S. crop production has been stable, averaging 24 percent from 1996 to 2001, and the export share of U.S. livestock products has averaged 6 percent.

While the export share of crops in recent years is lower than in the 1980s and in the first half of the 1990s, the export share of livestock products is higher now than in the 1980s.
Source: Agricultural Outlook, ERS/USDA, November 2002

Guess what? Taxes continue to skyrocket!
For tax year 2001, local taxing units levied more than $25 billion in property taxes, about 12 percent more than in tax year 2000. Local appraisal districts reported 2001 total appraised property values increasing about 11 percent.

Appraised values are property values established by county appraisal districts (CADs) before deducting for exemptions to arrive at taxable values. Local taxing units include counties, school districts, cities, and special districts such as junior colleges, hospitals, utilities, flood control, and rural fire districts. Exemption amounts and types offered by taxing units may vary.

School property taxes—imposed by 1,035 independent school districts and representing 60 percent of total property taxes—grew by 13 percent to reach more than $15 billion in 2001. Local school taxable values (after exemptions) increased 11 percent to reach $943 billion.

City property taxes increased 10 percent, to total almost $3.9 billion. Total city taxable property values for 1,027 cities increased slightly above 10 percent to reach $691 billion.

County property taxes exceeded $3.5 billion in 2001 for more than an 11 percent increase from 2000. Looking at county general fund tax rates, county taxable values increased almost 11 percent to reach $1 trillion.

The levy of 1,288 special districts rose by 13 percent to total more than $2.7 billion on $2 trillion in taxable values. Special districts' boundaries may overlap with other special districts and may extend into more than one county.
Source: Statement; Carol Keeton Strayhorn, Texas Comptroller of Public Accounts, Nov. 2002

U.S. agriculture imports outweigh export gains
The fiscal 2002 U.S. agricultural export surplus dropped 10 percent to $12.3 billion from $13.7 billion in 2001, despite gains in both exports and imports.

Imports grew by 5 percent year-to-year contrasted with only a 1 percent gain in export value. Exports in 2002 were $53.3 billion and imports $41 billion. The value of bulk commodity exports rose 9 percent, while high value product exports dropped fractionally.

Export gains were led by vegetable oils, soybeans, and wheat, which rose $461 million, $379 million, and $243 million, respectively. Imports of grains, feeds, and oil meals rose $401 million. Other import gains occurred in fruits, juice, and nuts (up $320 million), vegetables and preparations (up $261 million), wine (up $296 million), and malt beverages (up $230 million).

Source: U.S. Agricultural Trade Update, USDA; Nov. 20, 2002

Property tax bites taxpayer hardest
How large a role do property taxes play compared to other state and local taxes in Texas?

Major state and local sales taxes and property taxes in 2001 totaled approximately $53.7 billion. Property taxes ($22.5 billion) remained the single largest type of tax at about 42 percent of this total.

State sales taxes, the next largest revenue source at $14.7 billion, represented just above 27 percent of the total. When combined with other state taxes, such as motor fuels and motor vehicle taxes, the franchise tax, oil and gas severance taxes, "sin" taxes and others, the state's share of the total tax levy is about 51 percent.
Source: Statement; Carol Keeton Strayhorn, Texas Comptroller of Public Accounts, Nov. 2002

Prospective wind farms blow up controversy
Farmers in Bureau and Lee Counties in Illinois are either delighted or defensive about their state's surge into windpower in 2003. The first wind farm, a 34-tower project slated for completion in mid-2003 on some 2,300 acres southwest of Tiskilwa in Bureau County, is already underway. Turbines will be spread over some 2,200 acres and landowners will collect lease payment of about $200,000 per year.

But many neighbors left out of the leases are fighting the project, saying the huge turbines impair their views and land values. The rotor tips will reach 381 feet high, almost as tall as a 40-story building.

A second project planned for Mendota Hills in Lee County is generating more controversy, though it would pay farmers about $130,000 in annual rental and add $50 million to the local tax base.

Two big wind farms in north central Iowa have been running several years with no big problems, but that project had its objectors as well.
Source: ProFarmer Connection, Jan. 2, 2003

USDA seeks comments on country-of-origin labeling USDA, which estimates the country-of-origin food labeling system set up by the 2002 Farm Bill will cost the food industry approximately $2 billion, is seeking public comment on ways to minimize the cost. The program is voluntary for two years but then becomes mandatory.
Source:Doane's Agricultural Report, Dec. 6, 2002, Vol. 65, No. 48-1