Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts

Friday, February 26, 2016

NOFA-NY Board Wants Farmers and Farm Workers to Get at Least $15 an Hour

From Empire Farm & Dairy magazine:

From the board of directors of NOFA-NY

The Northeast Organic Farming Association of New York board has released a statement regarding the unbalanced food price structure that affects farmer’s costs and what they can pay their workers.
 

“As of Dec. 30, the New York state minimum wage is $9 an hour.
For employees of fast-food chains, the minimum wage rose to $10.50 in New York City and $9.75 in the rest of the state, and the base hourly rate for restaurant servers and other tipped workers increased to $7.50.
 

If the minimum wage had kept up with inflation, the $1.60 of 1968 would be $10.96 today.
 

Like minimum wage, the prices paid to farmers for their products have not kept up with inflation.
 

The number of farms and the acres in farmland in New York state continue a long decline. In 2002, there were 37,255 farms; in 2012 the number had dropped to 35,537. With the price of milk $8 lower than a year ago, more New York state dairies will go out of business. 
 

In January, the price paid to the farmer for winter squash was about 19 cents a pound and the retail price was $1.29 a pound. That is the type of unfair price structure that keeps farms from financial viability. It is time to shift more of the dollars paid for food back to farmers and farm workers.
 

Given our policymakers’ commitment to cheap food, achieving fair wages for all the people who work to bring food to our tables is inherently challenging.
 

When NOFA-NY surveys our farmer members, many make statements like this: “I certainly believe farmworkers should receive a fair wage, and I conduct my business in that way.”
 

Fairness is an important value for New York’s organic farmers, yet the wages farmers pay their workers range from only $9 to $20 an hour. Most of the farmers are not earning much more, and farmers in the first 10 years of their farming careers often pay their workers more per hour than they earn themselves.
 

There is plenty of money in the U.S. food system. According to their own public financial postings, for the first half of fiscal 2015, net sales for General Mills totaled $5.3 billion. 

Its competitors, Campbell Soup, ConAgra Foods and Mead Johnson Nutrition Co. reported revenues of $2.2 billion, $2.7 billion and $978 million, respectively, for their last reported quarter.
 

NOFA-NY believes that this has to change.
 

Raising the minimum wage to $15 an hour will not happen overnight. It should be phased in over a number of years as in Los Angeles, where the increases begin with a wage of $10.50 in July 2016, followed by annual increases to $12, $13.25, $14.25 and then $15. Small businesses and nonprofits are allowed an extra year to comply.
 

NOFA-NY’s board is in favor of raising the minimum wage, but we want to see prices to family-scale farms rise too since few farms are paying $15 an hour either to the farmers themselves or to their workers.

The prices farmers receive must go up. The prices paid to farmers for farm products must be a fair share of the final consumer price, covering the farm’s full costs of production, including living wages for farmers and all farm workers.
 

It is time to reallocate the food dollar to give a fair share to farmers and to raise the minimum wage for food workers. NOFA-NY calls upon all who want locally grown food to join us in the challenging effort to make our food local, and also organic and fair.”

New York Farm Bureau Sets Legislative Agenda; Fighting Minimum Wage Hike is Number 1

From Empire Farm & Dairy magazine:

New York Farm Bureau released its 2016 state priorities Jan. 27 that focus on improving conditions in New York state to allow for agricultural growth. 
 

Norton
New York Farm Bureau President Dean Norton laid out the legislative agenda during a press conference call with the media that included NYFB’s Public Policy Director Jeff Williams.
 

The number one issue for New York Farm Bureau this year is to strongly oppose the $15 minimum wage. The plan would dramatically impact farms competitiveness and cost farmers an estimated $500 million in additional annual labor costs alone. That would be crushing in a year like this one, when milk and commodity prices are significantly lower.
 

Norton said the average agricultural wage in New York state is $12.39/hour, well above the current minimum, but an increase will force wages up across the board, including those already making more than the minimum based on skill and experience. Additional costs will rise as well for payroll taxes like unemployment insurance and FICA. 
 

Other expenses will come from increased costs for goods and services that farms must purchase.
 

“The governor’s minimum wage proposal makes New York completely uncompetitive with the other agricultural states,” Norton said.  “When Pennsylvania’s minimum wage is $7.25 and New York’s is $15, how can our farms and other businesses compete? The answer, unfortunately, is to reduce labor costs or shut down.”
 

State funding for critical farm programs is also a top priority for NYFB. The governor included a number of items in his budget plan to help the farm industry, including money for the Environmental Protection Fund, which will assist farms with water quality, conservation and farmland protection programs.
Norton said Farm Bureau also remains committed to securing money to assist schools in starting new FFA programs and  agricultural education programs. The U.S. Department of Agriculture estimates there will be 60,000 new jobs a year in the farming and food industries, and the state will need to have a workforce ready to meet those demands to help grow the industries right here at home.
“We have an abundance of school districts looking to add chapters and this funding would help get those chapters off the ground and started,” Norton said.
A third priority related to the budget is the investment in roads and bridges for upstate New York. 


The governor is committing $20 billion to match infrastructure efforts happening in and around New York City. The parity in upstate-downstate funding remains a priority because our farms need access to good roads and safe bridges in order to transport their goods to market.
 

“Many of the bridges that cross the Erie Canal are no longer accessible to agricultural equipment and vehicles because of the weight limit and restrictions,” Norton said. “This increases time and costs for farmers who may have to travel miles out of their way to get to a farm field or deliver milk.”
 

Another new priority is support for transferring farm assessment functions from the Department of Taxation and Finance to the Department of Agriculture and Markets.
 

Agricultural land assessments are determined by Agriculture and Markets under Agricultural District Law. However, when it comes to administering the assessments, it falls to Tax and Finance, which can create some confusion for assessors not well versed in Agriculture District Law.
 

“There is a real sensitivity and understanding of our industry in the Department of Agriculture and Markets and we feel that assessment program and functions would be much better served in that department rather than Taxation and Finance,” Williams said.
 

Finally, energy is another major priority. Reducing costs and increasing efficiencies for farms, while also helping farms transition to renewable energy sources, provide many benefits for agriculture. 
 

The governor’s initiative, known as Reforming the Energy Vision or REV, is looking to be a more market-based plan than current energy policy incentives.
 

New York Farm Bureau will work this year to ensure REV is implemented in a fair and effective way so that rural New York is able to take advantage of the programs available, and farms can contribute to a more resilient grid and power their neighborhoods.

Farmers React to Proposed $15 an Hour Minimum Wage Proposal

From Empire Farm & Dairy magazine:

By TED BOOKER
Empire Farm & Dairy
 

Dairyman Jeffrey Murrock said a robotic milking system was recently installed at his farm, a move made to offset the potential impact of the governor’s $15-an-hour minimum wage proposal.
 

The co-owner of Murrock Farms, in the town of Pamelia, Jefferson County, is among thousands of farmers statewide who are concerned about Gov. Andrew Cuomo’s wage proposal. 

The New York Farm Bureau, for example, recently announced that its number one legislative priority this year is to oppose the proposal (see page 12).
 

The plan would gradually raise the current $9-an-hour minimum wage to $15 in 2019 in New York City and in 2021 for the rest of the state.
 

To cut down on its payroll, Murrock said his 220-cow farm plans to soon lay off two of its 10 employees. Fewer employees are needed as a result of the new automated milking system, in which cows enter robot stations to be milked. The system went into operation about three weeks ago.
 

“We’re looking to the future, and we put the robotics in because they’ve been talking about raising the minimum wage for over a year,” said the 31-year old, who co-owns the farm with his younger brother, Dillon, and father Darryl.
 

Murrock said he believes hiring employees will become increasingly difficult if the wage proposal is approved, as retail and hospitality jobs would become more attractive.
 

“You’re putting in a lot more hard work on the farm,” he said, adding that entry-level employees at the farm are paid the state’s minimum wage.
 

The farm bureau has determined the average agricultural wage in the state is $12.39 an hour.
 

Collectively, the bureau calculated the proposal would increase labor costs of the state’s farms by roughly $500 million per year.
 

The prospect of a sharp payroll hike is daunting for farms because they’re already combatting low milk prices, said John Ferry, co-owner of Milk Street Dairy in the town of Rutland, Jefferson County. 

His farm is staffed by 27 employees and has about 1,700 milking cows. Employees at the farm start out making $9 an hour.
 

“It’s not just the people below $15 an hour who would be raised,” he said. “The people above that are going to expect similar raises, and you’re adding $6 across the board.
 

“We have a payroll of more than $1 million a year, and this payroll increase would be in the range of five times what our profit was last year.”
 

Ferry said the farm can’t afford to lay off any of its employees, and it would be challenging to find new ways to cut costs. Without an increase in milk prices, he said, it would be difficult to survive such a steep wage increase.
 

“In the existing situation, we’d be out of business,” Ferry said. “No dairy farm has cash flow. I would hope to survive the wage increase longer than others, hoping that a shortage of milk would bring the price back up.”
 

Investing in a robotic milking system to reduce the number of workers could be an option to cut costs, Ferry said.
 

“But that would be a huge capital investment,” he said, “and I’d be very uncomfortable to take on the risk.”
 

Michael Hill, owner of Hillcrest Farms in the town of Ellisburg, Jefferson County, said he doesn’t believe the wage proposal would significantly impact his 950-cow operation. The farm is staffed by 15 employees.
 

“Half of the employees are at $15 or more now, and the other half make $10 to $12,” he said. 
 

Hill said he is worried, however, about his ability to hire new workers under the wage-increase scenario. His employees work an average of about 60 hours per week.
 

“I’m worried about the labor pool getting smaller,” he said, adding that he already has difficulty attracting new workers. “People will want jobs where you don’t get dirty and get holidays and weekends off ... But these cows don’t take a day off.”

For more on this issue, read more stories on this blog ..... 

Monday, February 1, 2016

Farmers Against Proposed Hike in Minimum Wage

The New York Farm Bureau has come out strongly against the proposed minimum wage hike to $15 an hour.

Read this story to see what a couple of farmers think about Gov. Andrew Cuomo's wage hike proposal: 

Go to http://www.watertowndailytimes.com/news03/area-dairy-farmers-daunted-by-prospect-of-15-an-hour-wage-proposal--20160201 to see the story.

Thursday, January 28, 2016

New York Farm Bureau Lists Priorities for 2016; Stopping Minimum Wage Hike is Number 1

From the New York Farm Bureau:
 

New York Farm Bureau released its 2016 state priorities Jan. 27 that focus on improving conditions in New York state to allow for agricultural growth. 
 

New York Farm Bureau President Dean Norton laid out the legislative agenda during a press conference call with the media that included NYFB’s Public Policy Director Jeff Williams.
 

The number one issue for New York Farm Bureau this year is to strongly oppose the $15 minimum wage. The plan would dramatically impact farms competitiveness and cost farmers an estimated $500 million in additional annual labor costs alone. That would be crushing in a year like this one, when milk and commodity prices are significantly lower.
 

New York Farm Bureau members let Gov. Andrew Cuomo and the rest of the state Legislature know they are against the $15 an hour minimum wages. Back row left to right are Chris Kelder, Darin Hickling, Dean Casey, Patrick McCormick, Jake Schieferstine, Richard Kimball and Robert Nolan. In front, left to right, holding Assembly banner is David Fisher, John Sorbello and Phyllis Couture, holding governor banner is New York Farm Bureau President Dean Norton and Vice President Eric Ooms, and holding the Senate banner are Paul Fouts, Alex Wright and Ashur Terwilliger.
Norton said the average agricultural wage in New York state is $12.39 an hour, well above the current minimum, but an increase will force wages up across the board, including those already making more than the minimum based on skill and experience. Additional costs will rise as well for payroll taxes like unemployment insurance and FICA. 
 

Other expenses will come from increased costs for goods and services that farms must purchase.
 

“The governor’s minimum wage proposal makes New York completely uncompetitive with the other agricultural states,” Norton said.  “When Pennsylvania’s minimum wage is $7.25 and New York’s is $15, how can our farms and other businesses compete? The answer, unfortunately, is to reduce labor costs or shut down.”
 

Norton added New York Farm Bureau will hold lawmakers accountable on this issue, and remind its members of how their representatives voted. The minimum wage proposal is part of Gov. Andrew Cuomo’s budget plan.
 

State funding for critical farm programs is also a top priority for New York Farm Bureau. The governor included a number of items in his budget plan to help the farm industry, including money for the Environmental Protection Fund, which will assist farms with water quality, conservation and farmland protection programs.
 

New York Farm Bureau also remains committed to securing money to assist schools in starting up new FFA programs as well as for agricultural education programs. The U.S. Department of Agriculture estimates there will be 60,000 new jobs a year in the farming and food industries, and the state will need to have a workforce ready to meet those demands to help grow the industries right here at home.
 

“We have an abundance of school districts looking to add chapters and this funding would help get those chapters off the ground and started,” said Norton.
 

A third priority related to the budget is the investment in roads and bridge for upstate New York. The governor is committing $20 billion to match infrastructure efforts happening in and around New York City. The parity in upstate-downstate funding remains a priority because our farms need access to good roads and safe bridges in order to transport their goods to market.
 

“Many of the bridges that cross the Erie Canal are no longer accessible to agricultural equipment and vehicles because of the weight limit and restrictions,” said Norton. “This increases time and costs for farmers who may have to travel miles out of their way to get to a farm field or deliver milk.”
 

Another new priority for our members this year is support for transferring farm assessment functions from the Department of Taxation and Finance to the Department of Agriculture and Markets.
 

Agricultural land assessments are determined by Agriculture and Markets under Agricultural District Law. However, when it comes to administering the assessments, it falls to Tax and Finance, which can create some confusion for assessors not well versed in Agriculture District Law.
 

Moving the process to be entirely housed within the Department of Agriculture and Markets will not only streamline the process, but it would be a common sense move to improve a valuable program for our farms.
 

“There is a real sensitivity and understanding of our industry in the Department of Agriculture and Markets and we feel that assessment program and functions would be much better served in that department rather than Taxation and Finance,” said Williams, NYFB’s public policy director.
 

Finally, energy is another major priority for New York Farm Bureau. Reducing costs and increasing efficiencies for farms, while also helping farms transition to renewable energy sources, provide many benefits for agriculture. 
 

The governor’s initiative, known as Reforming the Energy Vision or REV, is looking to be a more market-based plan than current energy policy incentives. In the past, the New York State Energy Research Development Authority has worked with farms to open up opportunities for solar, wind energy and biomass as well as increasing the use of anaerobic digesters on dairy farms. The digesters convert animal nutrients into electricity that is returned to the grid.
 

New York Farm Bureau will work this year to ensure REV is implemented in a fair and effective way so that rural New York is able to take advantage of the programs available, and farms can contribute to a more resilient grid and power their neighborhoods.
 

“We are watching this process very closely, because at the end of the day, we want to make sure that farms who want to employ more renewable energy technologies are making out equally in rate pricing and that their efforts are economically viable,” said Williams. “At this time, we don’t know how this will impact farms or rate payers.”
 

New York Farm Bureau establishes its priorities every year beginning at the grassroots level. Members of 52 county Farm Bureaus voice their opinions and vote on public policy resolutions at the county level. Those make their way to State Annual Meeting in December where delegates cast their votes that determine the organization’s positions on legislative issues.  The State Board of Directors then established the priorities.

Thursday, January 14, 2016

Agriculture Topics Addressed in State of the State Speech

Some of what Gov. Andrew Cuomo said about agriculture in Wednesday's State of the State address:

"This year I propose our most ambitious entrepreneurial partnerships that we are excited about.

The first deals with agriculture and food. As you know, agriculture is a critical part of our economy. As you also know, there is a growing health concern among consumers about the food we eat -- what is in it and how it was grown. There is a burgeoning market for safe, healthy food. 

However, consumer confidence is lacking. Many of the labels that are on those products are virtually meaningless and they have no standard and they have no legal definition. Labels like “all natural” or “no antibiotics” actually have no legal definition. Much of our quote-unquote organic produce comes from overseas. So consumer skepticism is justified. To reassure and inform consumers – and provide an opportunity for New York farms – we will initiate the first program to certify the bona fides of natural products.

The Departments of Health and Agriculture will define what are now vague standards and conduct inspections to certify those standards are being met. Labels like “all natural” will mean something. “No pesticides” will mean something. “Hormone free” will actually mean something. The Attorney General will police the program so consumers will know when they buy that product, they are getting exactly what that product says it is.

We are going to call it the 'NY Certified High Quality' program. It will be voluntary for our farmers to participate but we will advertise this program and its products nation-wide and we think there is a significant marketing asset for the farms that participate. It’s an exciting opportunity. It can help grow our farms. Better products for our consumers. It’s exactly what we need. Let’s take a moment and say thanks to Commissioner Ball, Dr. Zucker and Attorney General Schneiderman."

Cuomo also reiterated his push for a $15 an hour minimum wage, although this move is opposed by some in agriculture, including the New York Farm Bureau.

Wednesday, January 13, 2016

Statement from Farm Bureau President on Cuomo's State of the State Address

Statement from Dean Norton, president of New York Farm Bureau:

Norton
“Governor Andrew Cuomo is moving forward with some major budget proposals that will impact agriculture across the state in positive and negative ways. New York Farm Bureau has advocated on a host of issues mentioned in the State of the State, and many of the Governor’s requests reflect his interest to improving conditions for family farms across the state.

"New York Farm Bureau is hopeful his efforts to substantially increase the Environmental Protection Fund will assist farmers with expanded water quality, conservation and farmland preservation programs that are widely used. In addition, his request to offer a 100 percent tax credit on Thruway tolls for farm vehicles that use EZ Pass is a sensible approach to helping farms save money while at the same time making it easier to move their products around New York. 

"Improving rural infrastructure also remains a priority for New York Farm Bureau, and we are pleased to see additional funding as well to improve roads and bridges in the upstate and Long Island regions.

"There is also support for agriculture reflected in funding for critical research. Plus, the Governor has maintained his commitment to marketing initiatives, like Taste NY, that let our neighbors and the world know about the healthy food and products that come from our farms.

"Despite these positive endeavors, New York Farm Bureau remains deeply concerned about the impact of a $15 minimum wage on our farms’ bottom lines. Many of our members tell us they will be forced to make tough choices should it pass, choices like reducing staff, changing what they grow and how they grow it, or just leaving farming altogether. 

"We encourage Governor Cuomo to continue working with Farm Bureau to find better ways to promote job growth, better wages, and new opportunities for our family farms and their employees,” said New York Farm Bureau President Dean Norton.

Tuesday, September 15, 2015

Farmers Fear $15 Minimum Wage in New York

New York Farm Bureau has commented on its displeasure of the $15 an hour minimum wage law.

Here is another story on the same subject and the law's effect on farmers: http://www.saratogian.com/general-news/20150914/farms-fear-15-minimum-wage

Monday, September 14, 2015

New York Farm Bureau Comments on Minimum Wage Hike

New York Farm Bureau President Dean Norton commented late last week about the $15 an hour minimum wage law in New York state:

“New York Farm Bureau has serious concerns about Governor Cuomo’s proposal to raise the minimum wage to $15. Farmers in New York are already at a competitive disadvantage compared to those with lower labor costs in other states," Norton said.

"They cannot make up the increased spending by simply raising prices because they are competing in a global market where supply and demand dictate what consumers pay. For example, if Michigan growers can offer cheaper apples to grocery stores that is what largely will be purchased on the open market," he said.

Norton
"In turn, New York farms will be forced to absorb the higher labor costs. For those who sell directly to consumers, higher food prices will become the norm. 

"In general, farms in New York already pay more than the current minimum wage. According to the USDA, the average agriculture wage rate in the state is $12.15. Upping the minimum wage would lift all farm wages.  A worker who already earns a higher hourly rate based on experience and time on the farm would still expect a higher salary than those who are newly hired.  This proposal would likely force the average wage rate well above the $15 mark," Norton said..

"The impact will be clear. We have already seen farmers, who can afford it, turn to automation to milk cows and harvest crops in order to reduce labor costs. This trend will only be exacerbated by an extreme minimum wage hike thereby shrinking the agricultural workforce across New York," he said. "The wage hike will also be a bigger barrier for smaller farms who are interested in hiring new employees to grow their businesses. This will ultimately be bad news for the rural economy that depends on agriculture as its bread and butter.”

Wednesday, March 18, 2015

New York Farmers Oppose Hike in Minimum Wage

From New York Farm Bureau:

During a conference call today with reporters, New York farmers spoke out against plans to raise the minimum wage to $10.50 or higher. 

The farmers stated the increase would strain farmer income and place farmers in this state at a further competitive disadvantage.

New York Farm Bureau has compared other minimum wage rates across the country, including those states New York directly competes with in the dairy industry.  

California is the only large dairy state with a similar minimum wage.  California stands at $9.  However, Pennsylvania, Wisconsin and Idaho are all at the federal standard of $7.25. 

But this isn’t just about rising wage rates for those earning the minimum. Farmers in New York routinely pay well above current rate. 

According to the U.S. Department of Agriculture, farms in New York already pay an average agriculture wage rate of $12.15.  Farmers said increasing the New York minimum wage would lift all wages on their farms.  

They said a worker, who already earns a higher hourly rate based on experience and time on the farm, would also expect a bump in salary to match. 

Sandie Prokop, a dairy farmer with Crossbrook Farm in Schoharie County, estimates a $1.75 wage increase and additional payroll taxes for her six employees would add an additional $44,354 to her payroll. This is at a time when the income her family’s farm receives for milk has dropped dramatically in recent months. 

Because of dropping milk prices set by the federal milk marketing order, she said her milk income has fallen more than $40,000 in the first two months of the year and expects the March check to be even lower.  Prokop said they have already cut costs where they can and do not know where else to trim should labor costs climb again.

“You can’t give one employee a raise and not another,” said Prokop. “It’s a significant amount of money without any time to prepare. We are price takers and not price makers.  We do not have that $45,000 available. The choices become very dark and very serious for everyone that is milking cows and farming in New York.”

Brian Reeves of Reeves Farms in Lysander in Onondaga County, runs a vegetable and fruit farm, including a U-pick operation. He said this increase would drive up wages across the board for his employees, estimating a $10.50 rate and added payroll taxes would cost his farm an additional $50,000 a year.

“This isn’t a story of “gee, we have minimum wage workers and can’t give them another quarter.” We are already paying well above it. Our entire payroll creeps up when the minimum wage goes up and has a profound impact on your bottom line,” said Reeves. 

“Where the rub is for me is I compete with Pennsylvania, Wisconsin and Michigan, states that typically have fewer expenses to farm than we do in New York,” Reeves said.

New York Farm Bureau has continually supported keeping the state minimum wage linked with that of the federal minimum wage, as our farmers are competing in a global marketplace. Farmers can’t pass along the increases to wholesalers, processors and grocery stores because of competition from farms in other states and countries.

“Farmers can’t simply raise our prices because labor prices are going up.  This is not a wise strategy to support agriculture or business in the State of New York,” said Dean Norton, New York Farm Bureau President.


 

Tuesday, March 17, 2015

New York Farm Bureau Officials to Discuss Minimum Wage Increase

From New York Farm Bureau:

New York Farm Bureau will host a press conference call at 10:30 a.m. Wednesday, March 18 to discuss the minimum wage proposals in Albany. 

During the call with reporters, Farm Bureau President Dean Norton will highlight the analysis of wage rates on farms in New York and how they compare to other states. In addition, two farmers will discuss the financial impacts to their individual farms should lawmakers approve another minimum wage increase.