Grain Journal - July/August 2008 - (Page 102) Nebraska Storage Rates PSC APPROVES HIGHER STORAGE RATES BUT NOT HANDLING RATES The Nebraska Public Service Commission (PSC) in May decided to increase the Schedule A grain storage rates state-licensed elevators can charge depositors but left the current 25-cent handling charge unchanged, the Nebraska Grain and Feed Association (NeGFA) reported in its newsletter. The PSC’s action came after NeGFA joined the Nebraska Cooperative Council (NCC) and other agribusiness organizations at a May 7 public hearing and strongly supported an increase in both storage and handling rates. Nebraska’s current maximum storage rate for soybeans stands at about 4 cents per bushel per month, while corn and most other grains are at 3.5 cents per bushel per month No Changes Since 2001 Nebraska handling charges and soybean storage rates have not changed since 1987, while corn and other grain storage rates were last increased in 2001. NeGFA and NCC recommended increasing the maximum allowed charge for handling to 40 cents per bushel, increase corn and other grain storage rates to about 4 cents per month, and increase soybean storage rates to about 5.5 cents per month. The PSC approved increasing corn and other grain storage rates to 4 cents per month and soybeans to 6 cents per month. The PSC expedited the decision in order to provide the 30-day notice grain warehouses have to inform their depositors of any rate increase and before wheat harvest begins. Volatile grain markets, soaring transportation and energy costs for fuel and transportation, interest rates, insurance, labor, and repairs have taxed grain and feed firms across Nebraska. After several years without increasing the maximum handling and storage rates, NeGFA felt the time was right to press for an upward adjustment. Feed Tax Reduced In another regulatory development in Nebraska, the Nebraska Department of Agrculture (NDA) has adopted a regulation reducing the current 10cent-per-ton state feed tax paid by elevators, feed mills, and ethanol plants by four cents to six cents per ton. NeGFA strongly supported the regulation originally proposed to reduce the tax by three cents. However, the NDA informed NeGFA that the tax could be reduced an additional cent without curtailing feed inspection services. The four-cent reduction will save Nebraska grain elevators, feed mills, and ethanol plants producing feed and distillers grains over $320,000 per year. The regulation came in the wake of industry opposition to recent legislative efforts to shift two cents permanently from the current feed tax to the state’s noxious weed control program. NGF and NCC vigorously opposed earmarking any fee or tax paid by the feed industry to any unrelated program. The regulations took effect July 1. 102 GJ J/A Response No. 1021 http://www.johnsonsysteminc.com http://www.johnsonsysteminc.com
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