Relates to creating a small farm modernization fund program and a small farm modernization fund

Title of bill

An act to amend the agriculture and markets law and the New York state urban development corporation act, in relation to creating a small farm modernization fund

Summary of specific provisions

Section 1 would amend the Agriculture and Markets Law by adding a new subdivision 49, authorizing the Department to cooperate with the Empire State Development Corporation to develop the "Small Farm Modernization Fund" program to provide grants to farmers for the purposes of modernizing their farm and farm practices. Small farms would be defined as 150 acres or less.

Section 2 would amend the Urban Development Corporation Act to add a new section 16-x to create the Small Farm Modernization Fund to make grants to eligible applicants for modernizing their farm and farm practices, including, but not limited to, infrastructure, equipment, crops, animals and marketing of farm products. Such modernization may also include updating and improving agricultural environmental management, as defined in Article 11-A, practices, equipment and infrastructure. The corporation would consult with the Department of Agriculture and Markets in order to establish criteria governing the award of grants including, but not limited to, farmers who produce a product in the State, demonstrate innovative plans for modernizing their farms and work farms of one hundred fifty acres or less. The Corporation would not invest an amount in any single beneficiary that exceeds twenty-five thousand dollars, subject to any exceptions to be established by guidelines of the corporation.

Justification

After a 70-year decline, New York's small farms are, beginning to make a comeback. For decades, the number of farmers has been shrinking as a share of the population, but the last Agricultural Census in 2007 showed a 4 percent increase in the number of farms. It is the first increase since 1920, and in many cases, young people and college graduates are joining in the return to the land. The appeal of locally grown and specialty produce, and the opportunity to fill a niche left open by larger farms geared toward larger markets are two of the factors behind this trend.

While there has been an increase in promoting locally grown food, New York's small farmers still struggle to get a foothold in this promising new market While start-up costs for the smallest operations can still be daunting, the difference between success and failure can be a matter of modernization that leads to greater productivity, The Small Farm Modernization Fund would feature grants of up to $25,000 to help small farms modernize infrastructure, equipment, and practices or add new animals or crops to the farm's production.

Prior legislative history

2013-14: A.7037A - referred to Rules / S.4520A - amended and recommitted to Finance

Fiscal implications

Subject to appropriation.

Effective date

This act shall take effect on the first of April next succeeding the date on which it shall have become a law.