Wisconsin Ag Connection - WFC Praises Proposal to Spur Dairy Plant Modernization

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WFC Praises Proposal to Spur Dairy Plant Modernization
Wisconsin Ag Connection - 01/25/2008

The leader of the Wisconsin Federation of Cooperatives says Governor Jim Doyle's proposed cheese cooperative tax credit aimed at spurring development of new dairy plants in the state is welcomed news. WFC President Bill Oemichen says new and modernized cheese factories will allow Wisconsin cooperatives to increase sales and compete more effectively with other regions of the country. The tax credit was among the economic stimulus proposals announced Wednesday in the State of the State address.

"We applaud the governor for recognizing the important role cooperatives and the dairy industry play in the state's economy," Oemichen said. "This tax credit is intended to help leverage substantial investment by cooperatives and others in our state's $20 billion dairy industry."

The idea is one component of Doyle's 'Next Generation Agriculture Plan,' which is designed to invest in cheese cooperatives, modernize meat and dairy processors, fund nutrient management and land conservation programs and enter growing international markets for whey. Oemichen noted that an investment tax credit will provide a financial incentive for dairy plant modernization--much like the dairy investment tax credit has spurred substantial increases in state milk production.

Meanwhile, Oemichen added that he and WFC members are working with the governor's administration to craft a proposal that will provide an initial incentive to make the state of Wisconsin a financial partner with its modernizing cheese industry.

WFC serves more than 800 member-cooperatives owned by more than 6.3 million Wisconsin and Minnesota residents by providing lobbying, education, public relations and technical services for a wide variety of cooperatives.

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