FORT WAYNE – Charlie Smith runs a company in Indianapolis that refines oil from a deposit that stretches from Illinois into Indiana and Kentucky.
As if being an Indiana oil company weren’t unusual enough, CountryMark is an Indiana oil company owned by farmers.
The fuel is distributed throughout the rural parts of the state instead of being found at truck stops along busy highways.
Smith, president and CEO, plans to highlight that ownership connection today as he speaks to members of the Indiana Farm Bureau at its annual state convention. About 1,100 farmers are registered for the event, spokeswoman Mindy Reef said.
“They need to be reminded that they largely own us,” Smith said Friday afternoon. “They own us by owning their local cooperative. And the cooperatives own us.”
But Smith hopes to do more than just make nice with the bosses. He hopes to persuade them to contact their U.S. senators to urge votes against cap-and-trade legislation. Smith said bills being discussed could put his company out of business and send farming costs skyrocketing.
Efforts to tax carbon dioxide emissions could increase the costs of planting corn and soybeans, Smith said. Tilling soil releases the gas, he said, as does applying fertilizer to fields. Raising dairy cows releases methane gas.
Running his refinery would also suddenly become much more expensive. Smith estimated legislation could add $100 million to CountryMark’s annual tax bill. In contrast, the oil company makes $10 million to $20 million in annual profit, he said.
“It could threaten our viability, and (350) jobs would go away,” Smith said.
Also, he said, farmers’ stake in the oil company would be lost.
Among the corporations that support cap-and-trade legislation are Duke Energy, Hewlett-Packard and Starbucks.
Numerous environmental groups are on board.
Smith listed several organizations that oppose cap-and-trade legislation, including the Indiana Farm Bureau, Indiana Department of Agriculture, American Soybean Association, National Corn Growers Association, National Cattlemen’s Beef Association and U.S. Poultry & Egg Association.
The CEO knows he’ll be presenting his message to a friendly audience today.
“It makes my life easier,” he said. “They asked me to come. It wasn’t like I asked to come up and preach to the choir.”
