As the umbrella advocacy group for the agricultural industry in the state of Georgia, the Georgia Agribusiness Council has a unique perspective.  The $54.4 billion industry, which accounts for more than 8 percent of the state’s economy, is massive and complex.  According to Bryan Tolar, vice president of the Georgia Agribusiness Council, the list of issues impacting agribusiness is almost as massive and complex as the industry itself.

Ranging from pending public-policy actions to the availability of water, and agricultural education and awareness, here are some of the key issues facing the industry today.

Tax reform
In July, the tax reform council began its review of the state tax code including its 100+ exemptions. Agribusiness currently has more than 20 different exemptions from sales tax for items such as chemicals, farm equipment and ice for shipping produce.

“We’re working with the Georgia Farm Bureau, the Georgia Poultry Federation and others to ensure the tax council understands the role these exemptions play in maintaining a profitable, competitive state agribusiness,” Tolar said.

The council is scheduled to complete its report to the legislature in the first week of January 2011 and the legislature is expected to take action later in the year.

Water planning
According to Tolar, the state is making good progress in statewide water planning and documentation of water usage in crop production. Historically, water permitting has been very convenient but too easy.

“We need to quantify our current water use so that we can project future needs, invest in technologies to be more efficient and track savings,” Tolar said.

He believes Georgia needs to take a proactive approach to water use similar to the approach taken by countries in arid climates such as Australia.  It’s the best way to ensure Georgia is prepared for severe droughts years like 2007 and 2008.

Global warming
Actions being considered by the federal government to address global warming such as a cap-and-trade system or carbon tax could have damaging effects on Georgia agribusiness, according to Tolar.

“While agribusiness in the Midwest might benefit from a cap-and-trade proposal due to the vast amount of corn production in that region, Georgia agribusiness will be put at a disadvantage,” Tolar said.

Incentives to use natural gas over more carbon-intensive fuels are likely to result in an increase in the costs of fertilizers and other ag inputs. Although these efforts are currently on the back burner in the U.S. Congress, pressure to address global warming continues to grow.

Other environmental issues, including permitting requirements issued by the U.S. Environmental Protection Agency, can place a significant burden on farmers.  According to Tolar, the EPA is taking a much more active stance with essentially no accountability to citizens or legislators.  “It’s been a trend at the EPA that has accelerated dramatically under the current Administration and it’s a huge issue for agribusiness.”

Ag education
Future Farmers of America and 4-H clubs are thriving in Georgia.  Yet Tolar worries about how this strength will translate into college degrees and more careers in farming.

“When an individual gets a law degree, there is a system in place to move them into a well-defined career path in the legal field.  When an individual graduates with a degree in agricultural science, there is no defined path to build a profitable farming career,” Tolar said.

Behind this lack of an agricultural career path is a general lack of awareness, knowledge or even interest in the food and fiber business.  Increasingly, people have a very limited understanding of what’s involved in producing the food supply.

“We need those in public policy decision-making roles to have an understanding of rural communities in general and farming in particular,” Tolar said. “This is one of the biggest legislative and regulatory challenges the industry faces.”

The Georgia Agribusiness Council has been a leading advocate for farmers and others in agriculture since 1966.  Its membership includes more than 700 companies working in the areas of crop production, animal agriculture, inputs and supplies, farm equipment and manufacture, horticulture and finance.  For more information on the Georgia Agribusiness Council, visit www.ga-agribusiness.org

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