Congress Approves Hard Cider Bill

From the New York Apple Association:

New York state’s apple industry is applauding approval in Congress of an overhaul of how hard cider is taxed that will allow New York state hard ciders to be more competitive in the marketplace.

The U.S. House of Representatives passed the measure as part of the so-called tax extenders bill approved Thursday, while the U.S. Senate approved it today (Friday, Dec. 18) as part of a combined tax and government funding bill.

The House and Senate bills included language from bills introduced in both chambers earlier this year to level the playing field regarding how hard cider is taxed relative to other alcoholic beverages such as champagne, wine and beer. 

U.S. Sen. Chuck Schumer (D-N.Y.) introduced the “Cider Investment and Development through Excise Tax Reduction (CIDER) Act of 2015” with five bipartisan cosponsors in May.

New York’s U.S. Rep. Chris Collins (R-27) introduced similar bipartisan legislation in the House of Representatives in January with Oregon’s Rep. Earl Blumenauer. 

Several U.S. representatives from New York subsequently co-sponsored that House bill: Richard Hanna (R-22), Sean Patrick Maloney (D-18), Charles Rangel (D-13), Elise Stefanik (R-21) and Paul Tonko (D-20).

“As the second-largest apple producing state in the country, New York should be the core of hard cider boom we are seeing now. With this sensible change, our hard cider makers can sell more cider and grow their businesses – and that means our apple growers can sell more apples to those cider makers,” said New York Apple Association President Jim Allen.

Under current federal law, depending upon its alcoholic content hard cider can be taxed at same rate as wine, $1.07 per gallon – and depending upon its carbonation, it can be taxed at the even higher champagne rate of $3.30 per gallon. 

The CIDER Act provision included in the tax extender bill changes the definition of hard cider to tax it at $.23 per gallon, equivalent to beer.

President Barack Obama is expected to sign the bill into law.

Report: NY Unfriendly to Farmers

A recent report lists New York as extremely unfriendly to farmers. In fact the state ranks 49th out of 50 for friendliness toward the agriculture industry.

Go to http://www.uticaod.com/article/20150209/NEWS/150209477/0/SEARCH to see the story.

Agricultural Land Assessment Cap Bill Signed by Cuomo

Gov. Andrew Cuomo today signed a law to cap agricultural land assessments at 2 percent per year.

This is a bill New York Farm Bureau has been lobbying for months.

The governor's office said signing this bill into law ensures a more predictable tax climate for the state's agricultural sector. And putting this bill with the 2 percent property tax cap, farmers will be able to stay on their land and reinvest some of the money that would have gone for taxes into their operations.

“Protecting our farmers from unsustainable tax hikes is part of our work to change our state’s reputation as the tax capital of the nation by controlling spending while reducing the tax burden on New Yorkers,” Cuomo said.

“Agriculture is big business in New York and our state government is committed to doing everything we can to help this vital industry thrive and continue to create jobs and economic prosperity, particularly Upstate, he said. "This new law is a great example of just how far we’ve come and will help ensure that agricultural lands remain in the hands of hard working families for generations to come.”

According to the governor's office, during the past seven years, the base assessment value for agricultural lands has nearly doubled, leading to skyrocketing property tax increases. This, coupled with increases in municipal and school taxes, has led to a difficult business climate for some farmers. 

Previously, the annual change in the base agricultural assessment property value could not exceed 10 percent. The new legislation provides for an annual assessment increase of no more than 2 percent.

New York Farm Bureau was thrilled the bill was signed into law.

"In recent years, farmers have carried an increasingly heavy property tax burden that is second highest in the country and more than triple the national average," said Farm Bureau President Dean Norton. "But today, we will begin to get those skyrocketing property taxes under control. The cap will limit increases of agricultural assessment to no more than 2 percent a year."

"This does not mean farmers won’t be paying their fair share of taxes. It simply will control the rate of escalation that will make it easier for our family farms to budget for and pay their taxes," Norton said.  "By putting pen to paper, Governor Cuomo has given another boost to our family farms that contribute greatly to both the physical and economic health of their communities, and New York Farm Bureau very much appreciates his continued partnership with us on critical economic issues."

New York Farm Bureau also worked closely with many agricultural organizations to make today a reality. In addition, Sen. Patty Ritchie, R-Oswegatchie, and Assemblyman Bill Magee, D-Nelson, ushered the bill through their respective houses culminating in unanimous bipartisan victories.

To all of them, New York Farm Bureau expresses sincere gratitude for being our partners as well, Norton said

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June is Dairy Month -- Dairy Farming Huge Boost to the State's Economy

With the dairy industry, New York state would be hurting financially.

A Cornell University study on the economic impact of dairy states direct cash receipts on New York milk alone were $2.2 billion -- Yes that's BILLION with a B -- in 2010. Another 81 cents for each dollar goes out into the local community. That computes to $1.782 billion in the state economy just for milk sales.

The Cornell study states more money is made for the state through dairy processing plants and manufacturers. Another $2.26 for each dollar generated by milk cash receipts pumps another $4.972 into the state's economy.

Dairy farming and processing combined impacts the state economy to the tune of $8.9 billion. Not shabby.

Also, the Cornell study states 1.24 jobs are created for every one job on a dairy farm.

In addition to the money pumped into the economy, dairy also generates money in other ways. Steve Ammerman, public affairs director for New York Farm Bureau, said dairy farmers are creating more economic opportunities by agri-tourism, selling their own dairy products made on the farm and simply adding to the beauty of the state's open land that tourists and others love to see.

"Dairy farms are a great economic driver in their communities because it has been shown time and time again that the money earned mainly stays local," Ammerman said. "Not only in terms of wages they pay their employees, but also in spinoff spending. Farmers rely on local suppliers for seed, equipment, repair work, fertilizer and other services and products they need on the farm."

"We are also seeing farms selling valued-added products like cheese and ice cream with milk that originates from their farms," Ammerman said. "This can bring in additional tourism for people who come from the outside of the community to purchase products at farm markets and local stores."

Ammerman added farmers also pay taxes, which support local schools, roads and services. "For every dollar they pay in local taxes, they receive only a quarter of that back in services," he said. "While homeowners get back more than a dollar in services. Without the productive farms in rural areas, taxes would be higher for the rest of the residents."

Ammeriman also said "dairy farms help preserve open space and prevent it from being developed. Once it is lost to a parking lot or housing development, that farm land is gone forever along with the land's ability to produce local food. ... That is something worth investing in."


Nationally, about 97 percent of all dairy farms are family owned with an average herd size of 115 cows. According to Dairy Management Inc. and the National Milk Producers Federation, a dollar's worth of milk generates $3 in economic activity and every $1 million of U.S. milk sales generates 17 jobs.

The U.S. dairy industry is estimated at $140 billion in economic output, $29 billion in household earnings and more than 900,000 jobs.

NYS Assembly Passes Agricultural Land Assessment Cap Bill

Dean Norton

News from New York Farm Bureau:

Farmers in this state just received a big boost to help contain rising property taxes, with the state Assembly's unanimous passage of a bill that will cap agricultural land assessment increases at 2 percent a year.

The state Senate already has passed the legislation. The bill now goes to Gov. Andrew Cuomo for his signature.

This bill has been a top priority for New York Farm Bureau this legislative session.There has been great concern among our farmer members who have seen rising land values push up property tax bills for farmland in recent years, essentially doubling since 2006.

Agricultural land assessments are dictated by a complicated formula that takes into account national production value statistics and soil type.Currently, New York farmers pay $38.41 per acre in property taxes, according to Farm Credit East. That is the second highest rate in the country and eats up 15 percent of a farm’s net income.  This puts farmers in this state at a clear competitive disadvantage.

“The passage of the 2 percent cap on agricultural assessments is welcomed news on farms all across New York," said New York Farm Bureau President Dean Norton. "Not one has been immune to the skyrocketing property taxes that make it more difficult to provide local food and products to their communities. ... We are hopeful Governor Cuomo will sign off on the legislation that will go a long way to keep New York families on their farms.”

While the legislation will address the immediate needs of farmers, New York Farm Bureau also is advocating for the establishment of a working group comprised of stakeholders and experts to address the long term problem of agricultural assessment valuation.