February 3, 2016
www.gfb.org
Vol. 34 No. 5
CROP OUTLOOK, LOCAL TAX REVENUES ADDRESSED AT AG FORECAST UGA economists gave farmers and agricultural stakeholders a peek into what’s expected for the 2016 crop year and an examination of county tax revenues at the 2016 Georgia Ag Forecast series installment at Georgia Farm Bureau in Macon on Jan. 29. GFB President Gerald Long introduced himself and shared how the Ag Forecast series started thanks to an endowment set up by Georgia Farm Bureau. “Farm Bureau and Extension have a long service history together,” Long said. “The purpose of the Farm Bureau endowment was and still is to support a lecture series to provide information to farmers and agribusinesses about the upcoming growing season.” UGA Center for Agribusiness and Economic Development (CAED) Economist Sharon Kane shared state tax distribution data published by the Georgia Department of Sharon Kane Revenue. The CAED examination was in response to claims that the Georgia Agricultural Tax Exemption was resulting in significant reductions in the disbursements counties receive from the state. “We were receiving a lot of questions from around the state about it,” Kane said. “People were rumbling about GATE and how it was affecting counties.” While many counties saw the sales tax disbursements decline in 2013-2015 compared with 2010-2012, the biggest portion of those declines came in sales taxes on automobiles after the tax structure was changed by the legislature beginning in 2013. When the state disbursements of funds for the title ad valorem tax (TAVT) were added to the sales tax revenue, the average county actually saw a six percent increase in its overall revenue. “It’s not like a controlled experiment where you can say something is just caused by one thing or another,” Kane said. “But we think this Department of Revenue report helps to shed some light on what the questions are so we can ask the right question and shed light on what happened before and after these tax changes.” UGA Extension Economist Dr. Don Shurley provided the outlook information on the state's major row crops. Shurley said the state’s cotton growers are facing serious issues with demand for cotton, which has hovered around 60 cents per pound in recent months. He suggested that cotton farmers be patient and wait for prices in the 68-70 cents per pound range before signing -continued