News of the Day

DATCP, WEDC Announce New Wisconsin Agricultural Export Advisory Council

Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Secretary Randy Romanski and Wisconsin Economic Development Corporation Secretary and CEO Missy Hughes announced yesterday the creation of the new Wisconsin Agricultural Export Advisory Council (WAXC). This council will help guide the initiatives created through the Wisconsin Initiative for Agricultural Exports (WIAE), a collaborative project between DATCP and WEDC to promote the export of Wisconsin’s agricultural and agribusiness products.

The council includes international trade experts from WEDC and DATCP, state legislators, and agriculture organizations and agribusinesses representing crop, dairy, and meat products. The council will meet at least twice per year, and the first council meeting will take place at 9 a.m. on May 4, 2022 at the WEDC headquarters, 201 West Washington Avenue, Madison, WI 53703. These meetings are open to the public, and are
expected to have virtual attendance options.

Wisconsin agricultural exports reached an all-time high of $3.96 billion in 2021. Through the WIAE, DATCP is working collaboratively with WEDC to build on that momentum by promoting Wisconsin agricultural products in the international marketplace.

State Supreme Court Agrees Vacant City Lot is not Agricultural for Tax Purposes

In a case representing an important victory for local governments and their taxpayers, the Wisconsin Supreme Court upheld the Kenosha City Assessor’s determination that a vacant city lot the owner intended to develop into residential homes should be assessed as residential rather than agricultural use for property tax purposes. Nudo Holdings, LLC v. Board of Review for the City of Kenosha

The property at issue in Nudo was mostly raw and covered in underbrush, but also included several walnut and pine trees. The landowner challenged the classification of the property as residential, arguing it should be classified as agricultural instead because he collected walnuts intermittently. Agricultural use qualifies for a much lower assessed valuation. The board of review sustained the assessor’s classification as residential, which the circuit court and the court of appeals affirmed. The Wisconsin Supreme Court affirmed the lower court and board of review decisions.

Statement of Jerry Deschane, Executive Director, League of Wisconsin Municipalities, regarding the court’s decision: “Today, the Wisconsin Supreme Court upheld a commonsense interpretation of the agricultural use law that the Legislature enacted decades ago. The purpose of the law was to provide a property tax break for farmers, not developers. The Court’s decision makes clear that agricultural classification and the tax break that goes along with it is only proper if the land is chiefly given over to agricultural use.”

U.S. Consumer Prices Rose 8.5% in March

The consumer price index, which measures a wide-ranging basket of goods and services, jumped 8.5% from a year ago on an unadjusted basis, above even the already elevated Dow Jones estimate for 8.4%.

Excluding food and energy, the CPI increased 6.5%, in line with the expectation. The data reflected price rises not seen in the U.S. since the stagflation days of the late 1970s and early ’80s. March’s headline reading in fact was the highest since December 1981. Core inflation was the hottest since August 1982.

 

Food rose 1% for the month and 8.8% over the year, as prices for goods such as rice, ground beef, citrus fruits and fresh vegetables all posted gains of more than 2% in March. Energy prices were up 11% and 32%, respectively, as gasoline prices popped 18.3% for the month, boosted by the war in Ukraine and the pressure it is exerting on supply.

One sector that has been a major driver in the inflation burst subsided in March. Used car and truck prices declined 3.8% for the month, though they are still up 35.3% on the year. Also, commodity prices excluding food and energy fell by 0.4%.

OSHA Initiates Enforcement Program to Identify Employers Failing to Submit Injury, Illness Data

The U.S. Department of Labor’s Occupational Safety and Health Administration is initiating an enforcement program that identifies employers who failed to submit Form 300A data through the agency’s Injury Tracking Application (ITA). Annual electronic submissions are required by establishments with 250 or more employees currently required to keep OSHA injury and illness records, and establishments with 20-249 employees classified in specific industries with historically high rates of occupational injuries and illnesses.

The program matches newly opened inspections against a list of potential non-responders to OSHA’s collection of Form 300A data through the ITA and reports all matches to the appropriate OSHA area office. If the area office determines that the establishment on the list is the same establishment where the inspection was opened, OSHA will issue citations for failure to submit OSHA Form 300A Summary data.

In addition to identifying non-responders at the establishment level, the agency is also reviewing the 2021 submitted data to identify non-responders at a corporate-wide level. This corporate level review is being conducted for the nation’s largest employers.

OSHA developed the program in response to recommendations from the Government Accountability Office to improve reporting of summary injury and illness data.  The initiative will begin in early April.

The agency is also posting ITA data as part of its electronic recordkeeping requirements for certain employers. By mid-March, 289,849 establishments had submitted their OSHA Form 300A information.

 

U.S. Consumer Debt Jumped by $40 Billion in February

Americans got into a lot more debt in February as rampant inflation kept up the pressure, the Federal Reserve’s consumer credit report showed Thursday. Debt levels jumped by nearly $42 billion to a total of almost $4.5 trillion. That’s an annual increase of 11.3%, seasonally adjusted. In January, total credit had grown only 2.4%.

Revolving credit, which includes credit cards, jumped by 20.7% to about $1.1 trillion. The category increased by only 4% in the prior month.
Nonrevolving credit, such as student or car loans, grew by 8.4% to $3.4 trillion, also outpacing a smaller January gain.

U.S. Postal Service Announces New Prices for 2022

Today the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of price changes to take effect July 10, 2022. The new prices, if approved, include a two-cent increase in the price of a First-Class Mail Forever stamp from 58 cents to 60 cents.

The proposed prices, approved by the Governors of the U.S. Postal Service, would raise First-Class Mail prices approximately 6.5 percent. The proposed Mailing Services price changes include:

Product                                                        Current Prices                Planned Prices

Letters (1 oz.)                                                  58 cents                         60 cents
Letters (metered 1 oz.)                                   53 cents                         57 cents
Letters additional ounce(s)                              20 cents                        24 cents
Domestic Postcards                                       40 cents                        44 cents
International Letter (1 oz.)                              $1.30 cents                  $1.40 cents

The PRC will review the prices before they are scheduled to take effect. The complete Postal Service price filing with prices for all products can be found on the PRC site under the Daily Listings section at prc.gov/dockets/daily.

Department of Safety and Professional Services Announces LicensE Launch Date and Related Application Blackout Period

The Department of Safety and Professional Services is announcing a two-week blackout period for initial license applications for 72 license types (the list of affected licenses is available HERE – https://dsps.wi.gov/Pages/LicensE.aspx). This black-out is part of the transition to LicensE, the department’s new self-guided, online platform that is replacing paper-based applications for occupational licenses.

The department will accept no new initial applications for the 72 license types from 12 p.m. on April 29 through 11:59 p.m. on May 15. The black-out period is a critical step to ensuring the successful launch of this new system. Applications received after 12 p.m. on April 29 will not be processed. Paper applications postmarked after this date will be returned to applicants. Current applications awaiting decisions will be evaluated in the order they were received.

LicensE will launch on May 16, and all initial applicants for the 72 license types will be able to use the new platform. Other licenses (initial applications and renewals) will transition to LicensE in subsequent phases.

Renewals are not included in the blackout, and any license types in active renewal during the blackout window can renew during their entire renewal period. Temporary licenses related to the pandemic are also not included in the blackout.

Spring Election – Tuesday, April 5

Today – Tuesday, April 5 – is the date of the nonpartisan Spring Election. The Polls are open from 7 a.m. to 8 p.m.

State offices to be elected are:

  • Court of Appeals Judge in Districts II, III and IV; and
  • Circuit Court Judge in Barron, Crawford, Dane, Eau Claire, Fond du Lac, Iowa, Kewaunee, Lincoln, Marathon, Milwaukee, Monroe, Oconto, Outagamie, Pierce, Portage, Racine, Rusk, St. Croix, Sauk, Vilas, Walworth, Waushara, and Winnebago counties.

In communities throughout Wisconsin, there will also elections for county supervisors, city mayors and alderpersons, village presidents and trustees, town chairs and board members and school boards.

To find your polling place and what is on your ballot, visit the Wisconsin Election Commission voter assistance website – My VoteWisconsin – https://myvote.wi.gov/en-us/.

U.S. Economy Grew by 6.9% in Fourth Quarter of 2021

The U.S. economy expanded at an annual rate of 6.9% in the fourth quarter of 2021, according to the final estimate of gross domestic product released by the Bureau of Economic Analysis on Wednesday.

While the report is a look in the rearview mirror, it puts a rubber stamp on what was an extraordinary recovery from the economic shocks brought about by the coronavirus. Earlier estimates had put the quarterly gain at 7%. Much of the growth was driven by businesses restocking inventories.

Earlier this month, the Fed set in motion a round of interest rate increases with a 25-basis-point hike in the federal funds rate. Market interest rates have already moved upward, with the yield on the 10-year Treasury hitting 2.416%.

The yield on the 5-year Treasury rose above that of the 30-year note briefly on Tuesday, in what is known as a yield curve inversion, often a warning sign of a recession. But it then reverted back and analysts still put the odds of a recession anytime soon at no higher than 20% to 30%.

Global supply chain disruptions, also a byproduct of the pandemic, were beginning to ease earlier this year but then picked up with the situation in Ukraine and the imposition of sanctions on Russia by many countries. Russia is a key global supplier of oil, while Ukraine is a major producer of wheat and some precious metals used in a variety of products.

State Regulators Approve $171 Million Natural Gas Plant near Wausau

State regulators voted 2 to 1 to approve plans from two of the state’s largest utilities to build a $171 million natural gas plant near Wausau.

We Energies and Wisconsin Public Service say the 128-megawatt plant is a key part of a $3.5 billion plan to retire 1,600 megawatts of fossil fuels and replace that with power from wind, solar and battery storage. Milwaukee-based WEC Energy Group, which owns the two utilities, has pledged to cut carbon emissions 80 percent by 2030 and go carbon-neutral by 2050. The Utilities hope to begin construction of the plant this year and place it in service in 2023.

As part of the transition, they plan to keep a “modest amount” of natural gas in their power mix that includes the new plant, which will have seven reciprocating internal combustion engine (RICE) units in Rothschild and Kronenwetter.

Public Service Commission Chair Rebecca Valcq agreed the gas-fired units are important to ensure that reliable power can be dispatched quickly when renewable resources aren’t available. “The company will be able to call on that capacity to fill in the gaps for intermittent resources when it’s needed,” Valcq said.

As Wisconsin and the federal government aim to go carbon-neutral by mid-century, Commissioner Ellen Nowak argued regulators need to “be the adults” to ensure reliable and affordable power throughout the clean energy transition.

“The record here shows that we have to build these units. They’re necessary,” Nowak said. “If you like renewables, then … you need these units. They are a necessary part of the transition.”

Nowak highlighted studies by the North American Electric Reliability Corporation and Midcontinent Independent System Operator that underscore the variability of renewable energy and need for more flexible resources like natural gas.