Supporters of making North Dakota's potato checkoff tax mandatory believe it is only fair that all farmers pay, but critics say allowing growers to seek a refund lets them show any dissatisfaction about how the money is spent.
At least one lawmaker wonders if a mandatory potato tax would prompt other commodity groups to ask for the same treatment.
"I think what we do here will set precedents," said Rep. Mike Brandenburg, R-Edgeley. "When you open the door on this, all the other groups are going to be coming in."
North Dakota potato growers pay 3 cents for every 100-pound bag of potatoes they produce to promote the industry, but they can ask for their money back. A bill in the North Dakota House would eliminate that option.
The Northern Plains Potato Growers Association, which gets nearly 90 percent of its $450,000 budget from the checkoff, says all potato farmers who benefit from its efforts should pay. The association finances research, education and advertising.
"I am tired of other farmers benefiting without contributing," Crystal farmer David Moquist told members of the House Agriculture Committee on Friday.
Lisbon farmer Bob Moe said North Dakota is the only major potato-producing state that has a checkoff refund provision. "(It) enables them to become … freeloaders and get a free ride," he said.
Only about six out of 200 farmers ask for refunds. However, Ben Tucker, an association board member, said they are mostly large growers. Their refunds in the past year totaled about $130,000.
The Northern Plains Potato Growers Association also gets about $50,000 a year from the Minnesota Area 1 Potato Council. Board member Chuck Gunnerson said Minnesota has no refund provision, and some growers there believe the same should be true across the border.
"It becomes a fairness and equity issue," he said.
Opponents of making the checkoff mandatory say asking for a refund is the only way some farmers can make a meaningful statement about association practices.
"It allows the grower to vote with his dollars whether or not the association is doing what it's supposed to do and is truly advancing the potato industry," said Ron Offutt, a founder and owner of Fargo-based R.D. Offutt Co.
Offutt grows potatoes in 11 states. He told lawmakers he has asked for refunds in some years to protest what he considered subpar representation of farmers who grow potatoes for the processing industry, rather than other markets such as table potatoes.
Gregg Halverson, who farms near Forest River, implored lawmakers not to change the law.
"This bill is about choice, it's about the ability to vote with your checkbook," he said. "I do not believe that this choice should be taken away."
Posted in State-and-regional on Friday, January 12, 2007 6:00 pm Updated: 3:44 pm.
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