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September 6, 2008

Interstate 80 tolls threaten $45B industry

Foes: Plan jeopardizes agriculture's contribution to state economy

By Susan Misur

Forget the weather, rising fuel prices and the shortage of farm labor. The newest threat facing Pennsylvania farmers is the plan to place tolls on Interstate 80.

Charging fees to use the highway could significantly lower profits and even put some farmers out of business, industry representatives said Friday at a press conference in Mifflinville.

CEO and President David Geise said his Furmano Foods processing company ships 50 percent of its finished goods on I-80 annually. The General Assembly's passage last summer of Act 44, which calls for the placement of tolls on I-80, will leave Furmano's "at a complete disadvantage."

"The additional cost is estimated to amount to $400,000, which represents half of our average annual profits for the past five years," Geise said.

For most Pennsylvania potato growers, I-80 is the primary route to chip processors and marketplaces, said Roger Springer, executive director of the Pennsylvania Co-Operative Potato Growers Inc.

The Legislature should re-examine the budget, Springer said, adding that if costs are not controlled, potato production in the state will continue to decrease.

"If our Harrisburg legislators do not abandon this unnecessary tolling of I-80, the end result will more than likely be one of the last nails in the coffin for many of the potato growers in the state of Pennsylvania," Springer said.

The farming industry will take a hit with the arrival of tolls, but the changes won't end there, said Carl Shaffer, president of the Pennsylvania Farm Bureau.

The tolls could cut into the $45 billion that farming contributes to the state's economy as a result of agri-businesses and food enterprises, Shaffer said while standing at the entrance to his farm where the press conference was held.

"Ultimately, the economic damage will ripple throughout all of Pennsylvania," Shaffer said as trucks and cars traveling I-80 could be seen in the distance.

Geise and George Kutt, president of Valley Ag and Turf stores, said they located their businesses near the interstate to easily bring in supplies and ship out products.

Kutt said he fears the tolls will now cause customers to seek alternative suppliers, which will decrease business. Many of his store customers are located 50 miles in either direction on I-80.

"We'll have to reroute to avoid costs, and it will take longer and create traffic problems and cost more for insurance," Kutt said as he waited the conference to begin.

Richard and Betty Woodruff were also gathered on the farm to fight the tolls.

The Woodruffs, who said they've owned a Danville dairy farm for 40 years, have sent letters to state Sen. John Gordner, R-27 of Berwick, who is fighting against the tolls.

They plan to continue contacting him to oppose the toll legislation.

"It's going to put a real burden on agriculture," said Betty Woodruff, wearing a bright yellow anti-toll sticker on her shirt.

"The cost of hauling to dairies always comes back to the farmer," Richard Woodruff said.

Matt Balliet, a grain farmer in Zion Grove, said he "absolutely" worries about going out of business, thanks to rising costs and potential tolls. Balliet said Friday was the last day for one of his employees, whom he had to lay off to cut costs.

"Farmers are at the bottom of the food chain here," Balliet said. "We can't pass the costs on to anybody. Our transporters pass it onto us.

"All you can do is hold out hope (Act 44) gets reconsidered."

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