New York Farm Bureau Lists Priorities for 2017

NEW YORK FARM BUREAU
 

New York Farm Bureau released its 2017 state priorities Jan. 25 that seek to address a significant loss in farm income across the state.
 
These priorities will include supporting reinvestment into the state’s family farms as well as opening up new markets for New York farm products.
 
During the past two years, agriculture has been under additional economic pressures with low commodity and milk prices and rising labor costs. 

The governor has been quick to highlight when times are good for the agricultural economy, but new numbers just released by National Agricultural Statistics Service show the value of farm production in New York dropped by a billion dollars in 2015 to $5.33 billion. 
 
That is a significant loss in farm income, and anecdotally Farm Bureau members are saying that farm income will likely drop even further when 2016 numbers are released.
 

Fisher

“The 16 percent drop in farm income highlights why it is imperative that New York Farm Bureau advocate for common sense laws, regulations and tax policies that support the state’s family farms,” said David Fisher, New York Farm Bureau President, in a press conference call with reporters Jan. 25.
 
The first priority for the organization is to enact a refundable investment tax credit for farmers. Because of the down farm economy and the weather-related crop losses many farmers experienced last year, farmers are extremely short on cash flow and many do not have the savings to reinvest back into their businesses. 
This initiative would incentivize farm investment to meet the needs of global competition.
 
“It is important for farms and the rural economy, that farmers stay on top of equipment needs, structural repairs and new technology in order to meet consumer demands and business needs.  We cannot let our farm infrastructure take a hit during an economic downturn,” said Fisher.
 
Another top priority is doubling the minimum wage tax credit for farms, from $30 million to $60 million. The first step of the wage hike climbed at the beginning of the year on its way to $15 for farms on Long Island and $12.50 for Upstate farmers. 
 
New York Farm Bureau led the way in opposition to the hike last year, resulting in a $250 tax credit per employee for this first year of the increase. That will cover only a small fraction of what it will cost family farms to implement the wage hike.
 
The minimum wage increase will also push all wages up across the board, including for those who currently make well above the minimum. The average farm wage in New York is around $12.40/hour.
 
“Farms cannot just increase their prices to make up for that growing gap,” Fisher said. “They have to compete against farms in neighboring states and around the world.  If the state is going to force a higher wage on farms, they should be prepared to offer greater assistance, especially when farm income is down 16 percent.”
 
Securing state money for critical farm programs is also a top priority for New York Farm Bureau. The governor included a number of positive things in his budget plan, which will be beneficial to agriculture. This includes strong funding for the Environmental Protection Fund, which will assist farms with water quality, conservation and farmland protection programs.
 
There is also money to support agricultural education and FFA programs that will assist in job and skills training to meet future employment demands in agriculture.
 
New York Farm Bureau also will work with the legislature and governor to restore important funding for things like research, technical assistance and promotion dollars that support the diversity of New York’s farms. In addition, the organization is hopeful the governor’s $2 billion plan to improve the state’s water infrastructure and water quality will include significant money for conservation projects on farms across the state.
 
“New York Farm Bureau has pushed for this important investment with the administration. It will improve on our strong record of environmental stewardship in New York,” said Fisher.
 
The buy local movement continues to grow across the state, and New York Farm Bureau believes New York residents should not be the only ones to turn to their farmers first. The state of New York should do so as well.
 
That leads to the organization’s fourth priority, advocating for legislation that will provide a procurement preference for New York grown food for state institutional purchasing. This would be for food served in universities, prisons and other New York state-run facilities. 
 
There has been a greater focus on procurement by the administration, but we believe more should be done to make New York products a priority.
 
“This will this open up new markets for New York’s farmers. For only pennies more, the state can support its farmers and get more fresh, local food into the state system,” said Jeff Williams, New York Farm Bureau’s Public Policy Director.
 
Finally, another top priority for farmers is a state tax credit for donations of locally grown food by farmers to food banks. The governor has vetoed this bill twice. While he expressed support for the idea, his major objection was that the legislature passed it outside of the budget. New York Farm Bureau is asking the governor to fund it this time around.
 
The tax credit would be for 25 percent of the wholesale value of the donated food and no more than $5,000 per farm. The impact to the overall budget will be quite small in comparison to the $152 billion spending plan. We estimate it would be around $700,000.  

However, its impact will be far reaching.
 
“It will help farmers offset a portion of the costs of picking, packing and transporting the food to regional food banks.  More importantly, it will allow more locally-sourced food to be shared with those in need all over the state,” said Williams.
 
In 2016, farmers donated more than 13 million pounds of food to their regional food banks, which is more than 10 million meals. This is a new record for the state’s farmers and demonstrates their generosity.  However, the “Farm to Food Bank” bill would incentivize even greater food donations and that record number would climb even higher.
 
New York Farm Bureau establishes its priorities every year. Members of 52 county Farm Bureaus voice their opinions and vote on public policy resolutions at the county level.
 
Those make their way to the state Annual Meeting each December where farmer delegates cast their votes that determine the organization’s positions on legislative issues. The state Board of Directors then establishes the priorities for the year.

Farmers Re-Evaluate Operations in Wake of Minimum Wage Hike

Here's one reporter's take on how the minimum wage increase in New York state is affecting farmers.

Go to http://www.watertowndailytimes.com/news03/farmers-re-evaluate-operations-in-wake-of-increasing-minimum-wage-20170109 to check out the story.

New York Farm Bureau Disappointed New State Budget Includes Wage Hike

The state Legislature has come to an agreement on a new state budget that includes a minimum wage increase.

Here is a statement from New York Farm Bureau:

Norton

“As New York State leaders reach an agreement on an increase in the minimum wage, New York Farm Bureau is disappointed in the outcome and remains steadfastly opposed to the wage hike, regardless of the inclusion of any programs in the final state budget that are designed to assist agriculture," said New York Farm Bureau President Dean Norton.

"Farms, especially those on Long Island, will face extremely serious economic challenges as they will be forced to pay the dramatically higher wage rates mandated by this agreement. In turn, their business costs will skyrocket as their products become less competitive, and fresh locally-grown food products will be more expensive and less available," he said.

"The governor and legislature are playing politics with family farmers and their livelihoods and, as a result, our businesses and rural communities will pay the price,” Norton said.

Cuomo Wants to Give Farmers A Break from the Minimum Wage Proposal

So does anyone think this is a good idea?

Go to http://www.watertowndailytimes.com/apps/pbcs.dll/article?avis=WD&date=20160324&category=NEWS03&lopenr=160329320&Ref=AR to read the story.

15 Press Conferences Held Monday to Oppose Minimum Wage Increase

From New York Farm Bureau:

Family farmers and small business owners joined together Monday March 21 at farms and businesses across New York to ask state lawmakers to oppose the proposed $15 minimum wage increase. 

The April first budget deadline is just days away, and the coalition remains united in its efforts to defeat what would be a devastating blow to local employers. Farm Bureau’s state and county leadership spearheaded the effort asking local business groups and chambers of commerce to join in and voice their concerns.
 
In all, 15 press conferences took place from Long Island to the North Country to Western New York. It is part of a final push by New York Farm Bureau to make the compelling point to lawmakers that there are serious consequences, from job loss to higher consumer prices, should New York pass a $15 minimum wage. 

In addition, the organization has issued a call-to-action for members to contact their representatives in Albany and has also collected hundreds of postcards that will be delivered to legislative offices in Albany.

Onondaga County Farm Bureau Wants Phone Calls Made to State Legislators about Minimum Wage Proposal

From Onondaga County Farm Bureau:

On Monday, March 14, Farm Bureau is urging everyone to call their legislators in Albany and let them know that increasing the minimum wage to $15 is bad for New York. 

We are asking everyone, whether in agriculture or not, to take a good hard look at what this increase will do to our local businesses and the people already making more than minimum wage and make those calls to Albany on Monday. 

We need to overwhelm the phone system in our state’s capital. 

Here are some facts to help you understand why this act is so bad for New York:

• Farm and Small Business labor costs will immediately go up 67 percent%.

• Agricultural businesses do not set their prices they are nationally or globally market driven and we cannot offset our higher costs by increasing price

• Pennsylvania ($7.25) and neighboring States (all less than $10) will have a significant cost advantage over NY production.

• Our 36,000 farms are labor intensive and will be forced out of business or to spend on automation to replace our 200,000 employees. The automation is mostly foreign produced.

• Many farms and small businesses already pay experienced workers more than $15 hour but Farms also employ a large number of young inexperienced workers who are our State's future. Farms and other small businesses cannot afford to pay non-experienced workers $15/hr while training these workers with new skills. These people will lose many opportunities.

• New York State is the 3rd largest Dairy state in the nation and top 5 in many other commodities. Agriculture is one of the few thriving industries in New York State and will be decimated by this drastic change in costs.

• This is not a Wall Street versus Main Street issue. Wall St. does not pay workers minimum wage, small labor intensive businesses do. This act will not impact the wealthy, it will only hurt small businesses, farms and especially those businesses close to state borders.

Please make that call on Monday!!

New York Farm Bureau Completes Successful Lobby Days

From New York Farm Bureau:

Farmers from across the state spent two days in Albany visiting with lawmakers Feb. 29 and March 1 to highlight New York Farm Bureau’s public policy priorities for the year.
 
They kicked things off with the popular Taste of New York reception for state lawmakers, commissioners and staff where 70 county Farm Bureaus and agricultural organizations hosted tables featuring local farm products for people to sample.
 
Following the evening event, nearly 250 members participated in the annual lobby day where they met with both their local and adopted senators and assembly members. 

In addition, the organization’s executive committee met personally with all four legislative leaders, including Senator Majority Leader John Flanagan and Assembly Speaker Carl Heastie, and had a meeting with the Governor’s Deputy Secretary for Food and Agriculture, Pat Hooker.
 

Norton

“This was one of the most successful lobby days we’ve held, and it couldn’t have come at a more pivotal time for New York agriculture. The issues that will be decided upon in Albany this year will have profound impacts on farming in this state for years to come,” said New York Farm Bureau President Dean Norton.
 
Topping the list of state priorities is opposition to the proposed $15 minimum wage and the impact that it will have on New York farms. Farmers are concerned a nearly 70 percent increase in labor costs will only make it harder to compete with products coming in from other states and countries with considerably lower production costs.
 
An American Farm Bureau Federation economic analysis found a $15 minimum wage would cost New York agriculture $500 million or 25 percent of additional net income. This is expected to affect farms in a number of ways. The state will likely see farms reduce employment, turn to automation or close the barn doors for good.
 
State funding for critical farm programs is another top priority for Farm Bureau. Members also asked for funding parity when it comes to repairing upstate roads and bridges.
 
New York Farm Bureau also remains committed to securing money to help schools in starting up new FFA programs as well as for agricultural education programs. 
 
Farmers also discussed with lawmakers about transferring farm assessment functions to the state Department of Agriculture and Markets from the Department of Taxation and Finance.
 
These priorities were based on member approved public policies that originate every year at the county Farm Bureau level and are passed by the full delegate body at New York Farm Bureau’s State Annual Meeting in December.
 
In addition to advocating for priorities with lawmakers, members also participated in a special panel discussion with the Commissioners and representatives from the Departments of Agriculture and Markets, Environmental Conservation and Labor. Members were able to ask the public officials questions about a number of issues facing the state’s family farms.
 
“I cannot thank our members enough for the time spent away from their farms to visit with their lawmakers in Albany,” Norton said. “The large turnout reflects the passion and commitment they have to make a difference for their fellow farmers and this great organization. I also appreciate the time lawmakers took to speak with our members both at the reception and in their offices.”

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 ..... 

Ritchie Offers Survey on Legislative Issues

From the office of state Sen. Patty Ritchie:

Ritchie

State Sen. Patty Ritchie is encouraging Central and Northern New Yorkers to share their opinions on a variety of issues expected to come before the Senate in the coming months through her 2016 Legislative Survey. 

Ritchie’s survey, which is available at www.ritchie.nysenate.gov or by calling (315) 782-3418, focuses on a number of topics, including the following:

** Creating stronger ethics measures to increase transparency in government;

** A proposal by thegGovernor to require businesses to provide up to 12 weeks of paid family leave;

** Efforts to strengthen various sectors of our economy, including agriculture, manufacturing and technology;

** Potential increases to the minimum wage; and

** The governor’s proposal to raise the age of criminal responsibility.

Last year, nearly 5,000 people took part in Ritchie’s Legislative Survey. In addition, in the past she has also gathered feedback from constituents through surveys on topics like Common Core and sportsmen’s issues.