Creates an agricultural crop loss personal income tax credit

1 Co-sponsor

• Catharine Young

Title of bill

An act to amend the tax law, in relation to establishing an agricultural crop loss personal income tax credit

Purpose

To provide a personal income tax credit for agricultural crop losses

Summary of specific provisions

Section 1 amends the tax law by adding a new subsection establishing the Agricultural crop loss tax credit. The amount of the credit shall be equal to 35% of the average value of the unit production for New York State and reported by the USDA National Agricultural Statistics Service in a given year, multiplied by acreage in production.

Section 2 is the effective date.

Justification

Agriculture, by the nature of its business, is extremely dependent upon weather and pricing. We have seen the impacts of weather on farm business during Hurricane Irene, Tropical Storm Lee, and Superstorm Sandy, where farms lost a year's worth of forage, fruit and produce. Weather events combined with the strong cyclical nature of commodity pricing, makes pecuniary gains extremely difficult for agricultural businesses.

At the beginning of the 2012 growing season, New York State's farmers experienced widespread damage and loss to their crops as a result of an extremely rare severe frost event. Upon initial notification, elected officials and farm organizations immediately requested that the Governor contact the USDA Secretary of Agriculture and ask that a disaster declaration be issued for counties where farmers experienced damage to their crops. In doing so, farmers in counties that receive such a designation would be eligible for low-cost loans if their losses exceed the established threshold, as evaluated by the USDA's Farm Service Agency.

The preliminary damage assessment estimate indicated that New York experienced one of the worst statewide, multi-crop losses ever witnessed in the State. Cornell's Lake Erie Regional Research Laboratory estimated crop loss for grapes was between 40%-50%; cherries at 100%, peaches at 90%, and apples at 50%. While the level of crop loss varies based on the region of the State, elevations and the crop's stage of growth, there is no doubt that there is a high probability that many farmers will face severe economic losses.

Catastrophic losses like this are becoming more prevalent as traumatic weather events become more frequent and more extreme. This legislation is vitally important as it allows the state's farm operations and their families an opportunity to be economically viable, despite these weather events. Furthermore, this bill will allow farmers to offset the losses they sustain. For all of these reasons it is imperative that this bill is enacted.

Legislative history

2015: Investigations and Government Operations Committee

Fiscal implications

To be determined. EFFECTIVE DATE : This act shall take effect immediately.