Economist: Some Frown On ADM Incentive Plan
Archer Daniels Midland reportedly has its share of suitors as the agribusiness giant looks to move its corporate headquarters out of Decatur.
Recent reports list Dallas, Atlanta, Minneapolis, as well as Chicago as possible new locations for the headquarters and its 100 employees.
University of Illinois Economist Fred Giertz said one problem with the $24 million in tax breaks that Illinois lawmakers may take up soon is that no one knows exactly what company leaders are seeking, outside of easy airport access. Giertz said some do not approve of the possible tax credit package.
“Economists are not particularly fond of these kinds of ad-hoc inducements," he said. "Most economists say the best thing is to have a stable tax system and provide the necessary public services. Highways and communications and education – things of that sort and let the firms decide on their own. But there’s a strong political need to try and attract these firms – something that comes up time and time again.”
Giertz noted that keeping ADM headquarters in Illinois will not have any real impact on the state’s unemployment rate of 9 percent.
More than 4,000 ADM employees will remain in Decatur after the move.