CONTACT: Dan Miller, 507-259-6270; Paul Sobocinski, 507-430-1509

3/16/06
SAINT PAUL, Minn.— The passage of a dairy investment tax credit March 15 by a key committee of the Minnesota House of Representatives sends a message of support to dairy farmers throughout the state, said Land Stewardship Project (LSP) member Dan Miller. The Agriculture and Rural Development Committee passed the proposal, which would provide tax credits to dairy farmers that make improvements to their operations. The bill (House File 2879), authored by Rep. Dean Urdahl (R-Grove City), provides a 10 percent tax credit on up to $500,000 of improvement expenses. The maximum $50,000 credit can be used over a period of 15 years.

During the Committee hearing, Miller testified in favor of including pasture development and on-farm processing in the tax credit proposal. Miller, along with his wife Cara, farms 600 acres of pasture, hay, corn and soybeans. They also raise purebred Angus beef and dairy heifers on rotationally grazed pastures near the southeast Minnesota community of Spring Valley.

Miller told the Committee that as a Farm Business Management Instructor and former University Extension Educator, he has worked on finances and business planning with hundreds of dairy farmers and seen firsthand how grazing can lower production costs, thereby increasing dairy competitiveness. Through his work with farmers, Miller has also seen how on-farm processing of milk can improve profitability as a value added enterprise.

After Miller’s testimony, Committee Chair Greg Davids (R-Preston) ushered through an amendment to include expenditures for on-farm processing and pasture development as eligible for the tax credit.

“Pasture development allows farmers to be low-cost producers and top notch conservationists,” said Miller. “Representative Davids’ amendment makes the dairy tax credit more inclusive and that’s a good thing.”

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