Creates a real property tax exemption for land of a farm operation which is in the process of being certified for the production of organic crops

1 Co-sponsor

• Michael H. Ranzenhofer

Title of bill

An act to amend the agriculture and markets law, in relation to creating a real property tax exemption for land of a farm operation being certified as organic

Purpose or general idea of bill

This bill would create a real property tax exemption for the lands of a farm operation that are transitioning to organic - it is very similar to an already existing tax exemption for the replanting of vineyards and orchards.

Summary of provisions

Amends Section 305 of the Agriculture and Markets Law by adding a new subdivision 8.

Justification

The agriculture industry in New York State continues to become more and more diverse as it seeks to supply the many potential markets around the state, country and world. As part of that, some farms are seeking to transition to organic in an effort to grow fruits, vegetables and other goods for consumers who, for whatever reason, are seeking organic food.

Certainly, organic farming is a growing part of the agricultural fabric of the state and country given that, despite the increased costs, time and effort, the number of acres devoted to organic production has increased dramatically. For the first time ever, in 2005 all fifty states had land in organic production with over 4 million acres dedicated to it nationwide.

In 2011, New York ranked third in total amount of organic farms in the country with 597 organic farms. New York's certified organic farms sold a total of $107 million in organically produced commodities, including $38.5 million in crop sales and $68.3 million in sales of livestock, poultry and their products. Average sales were $186,668 per farm. Fifty-six percent, or $60.2 million of total organic sales in New York were from milk from cows. Milk cow sales totaled $3.77 million. Crop sales included over $22.1 million from field crops, $14.5 million from vegetables, and $1.36 million from fruit and berries.(United States Department of Agriculture).

In an effort to continue this growth, this bill would provide farmers who choose to transition to organic a partial tax exemption. Given the great investment in time and capital, this exemption certainly does not give farmers an overwhelming incentive but it will provide them some assistance as they transition to organic production. It is important to note that this bill closely reflects the already existing tax exemption for the replanting of orchards and vineyards.

Prior legislative history

2015: S.3059 Referred to Agriculture 2013,2014: S.3910-A Referred to Agriculture 2009,2010: S.2415A Referred to Agriculture 2008: S.7224/A.9866 Referred to Agriculture 2011,2012: S.790 Passed the Senate

Fiscal implications

None. EFFECTIVE DATE : This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after the first of January next succeeding such effective date.