Gov. Jim Doyle announced last week he would support a $33 million
increase in funding for Wisconsin's agricultural department.

A large portion of Doyle's Next Generation Agriculture plan is included
in the 2007-09 state budget, Doyle spokesperson Rachel Allen said. That
includes $13 million to prevent runoff pollution, $1.3 million in tax credits
for dairy plants to upgrade their equipment and $800,000 to help farmers better
manage their land.

"There is no industry that characterizes Wisconsin like farming," Allen
said. "Agricultural and dairy farming defines not just our economy but our
people and our way of life."

Doyle is also pushing for $1 million in tax credits to modernize meat
processing factories and $1.3 million in tax credits for cheese cooperatives to
invest in new cheese plants.

"We know there are dairy plants out there that know they need to
modernize and this gives them a bit of encouragement to invest that capital and
do so," said Robin Engel, spokesperson for the Wisconsin Department of
Agriculture, Trade and Consumer Protection.

In addition, Doyle wants to increase funding by $10 million to promote
whey production, a dairy byproduct used in processed foods such as cake mix,
baby formula and sports drinks.

Whey was considered a waste product in the past, but in recent years,
has become a big profit maker. According to Engel, whey is now used in many
processed foods and provides large profits for dairy plants.

Wisconsin's large dairy plants have begun to export huge quantities of
whey to China each year. But Engel said smaller plants have yet to take
advantage of whey.

"For the smaller plants, whey is still a waste disposal problem," Engel
said. "So the governor's plan would help them market it better."

The portions of the plan not included in the biennial budget still
require legislative approval, which includes the $10 million for whey
production. Allen said the governor expects his plan to receive support from both
sides of the aisle, and Engel agreed.

"Our agriculture industry is quite savvy and has a greater chance of
getting bipartisan legislation than most state legislatures," Engel said.

In 2004, the Legislature and Doyle agreed to offer similar tax credits to
farmers, Engel said.

In the first year, 42 percent of farmers took advantage of the credits.
By the second year, the program was maxed out, and $500 million of private
investments had been made in Wisconsin dairy farms.

"Farmers took huge advantage of it, and that's one of the reasons our
dairy farms are in a good position," Engel said.

Wisconsin dairy generates $21 billion per year, and each individual
milking cow generates $17,000 a year for the local economy.

"These wonderful animals called cows do an awful lot for us, and in many
ways this plan that is being proposed touches on all of them," Engel said.