OLR Research Report


June 27, 2002

 

2002-R-0568

STATES AGRICULTURAL POLICIES

 

By: Joseph R. Holstead, Research Analyst

You asked for a survey of Connecticut's and 11 other states' policies affecting agriculture, including Connecticut statutes and an inventory of the other states' programs, in the following areas:

All 12 states have farmland conservation and preservation programs and marketing strategies (with each state's agriculture department providing marketing assistance and grant programs). Attachment 1 outlines the states' marketing and other agricultural support programs. Each state is located within two of the most economically viable sections of the country according to a 2000 United States Department of Agriculture (USDA) survey, with the Northern Crescent (a USDA category encompassing the Northeast) region posting the largest increase in favorable farm business. Although USDA's Economic Research Service (ERS) 2002 farm business average net cash income forecasts are down for every region of the country, ERS considers the overall financial state of the U. S. agricultural sector sound.

Attachment 2 is a map defining the ERS regional categories.

Farms in each of the 12 states face similar challenges with inheritance tax and certain environmental laws. Innovative programs, such as Farmer's Market nutrition programs, which provide vouchers redeemable for locally grown vegetables for needy individuals, help consumers and farmers. Connecticut, Maine, and New York have similar programs.

The agriculture commissioner's inspection and approval of a farming operation is prima facie evidence that the operation follows generally accepted agricultural practices. (A plaintiff in a lawsuit would have the burden to present evidence to disprove this. )

These right-to-farm protections do not apply if a nuisance results from negligence or willful or reckless misconduct in an agricultural or farming operation (CGS § 19a-341).

Overall, Connecticut agriculture performs well. According to USDA's New England Agricultural Statistics Service, Connecticut's top five agricultural commodities and their cash receipts for 2000 were:

1. Nursery and Greenhouse Crops

$ 176,735,000

2. All Other Crops (including mushrooms, shade tobacco, and Christmas trees)

$ 106,097,000

3. Milk

$ 67,166,000

4. Chicken Eggs

$ 40,054,000

5. Aquaculture

$ 17,850,000

DOAg's list differs from USDA's due to differences in classifying crops and collecting data. According to DOAg's annual report, the top five commodities in Connecticut and their cash receipts in 2000 were:

1. Ornamental horticulture (nurseries, greenhouses, herbs, florists, garden centers)

$ 513 million

2. Tobacco

$ 70. 2 million

3. Dairy

$ 67. 1 million

4. Beef/cattle

$ 61. 5 million

5. Poultry

$ 60. 5 million

DOAg operates several programs to promote and develop state farms, descriptions of which follow.

One focus of DOAg, as with other states' agriculture departments, is to keep Connecticut farms economically viable. Its principal way of doing this is through the Farmland Enhancement Program (FEP), which provides matching grants to eligible farmers for capital improvements either to expand their operations or to diversify. Since 1997, DOAg has awarded over $ 600,000 in FEP grants. During FY 2000-01, seven farms received a total of $ 216,420.

The program's mission is to (1) encourage business diversification and problem-solving through technology, (2) encourage start-up businesses and new or improved products, and (3) enhance agricultural education and research in Connecticut. Program guidelines define "agricultural technology " as the use of knowledge which results in a higher standard of living for both consumers and producers of agricultural or aquacultural products. It includes the development of a device or process that improves crops or animal strains, saves agricultural or aquacultural labor, improves cultural practices, and the control of plants or animal diseases or pests.

As the logo became more recognizable, the program has branched out to incorporate a variety of other projects.

The marketing section of Delaware's Agriculture Department promotes state agricultural products by coordinating or participating in various in-state events and festivals during the summer growing season. These are open to the public and are free (except for the Delaware State Fair). For example, "Ag Day at the Mall" is an indoor event to which the marketing section invites more than 40 commodity exhibitors or agriculture-related groups to promote agriculture. When possible, the event is held during "National Ag Week," which is usually the third week in March.

Agricultural marketing staff provides farmers, food processors, and agribusinesses with marketing assistance. They assist farmers with (1) concept and idea development for new and innovative food products and marketing approaches; (2) development of a business or marketing plan; (3) technical assistance and coordinated services with related agencies, organizations, and companies; and (4) ways to penetrate international markets and open communications channels.

More information is available at: http: //www. state. de. us/deptagri/marketing/index. htm

The Agri-Business Development Program in the Marketing, Animal Industries, and Consumer Services Division of Maryland's Agriculture Department coordinates federal and state programs and helps established farmers or those starting an agribusiness with money management and marketing. The department uses various tools to promote aquaculture and seafood products and assists farmers with international trade and promotion.

Maryland Agricultural Statistics Service compiles information on agricultural production, market prices, cropping practices, crop conditions, agricultural weather, estimates of acreage to be planted or livestock to be produced, and other pertinent data. It distributes reports to farmers, agribusiness firms, wholesalers, and retailers to assist them in making management decisions.

More information is available at: http: //www. mda. state. md. us/geninfo/gen4. htm

The Bureau of Markets runs Massachusetts' Department of Food and Agriculture's Division of Agricultural Development marketing efforts. The bureau promotes the viability and sustainability of Massachusetts' food and agricultural businesses.

The bureau's Agricultural Marketing Grant Program provides matching grants to help farmers promote their products. Grants range from $ 500 to $ 15,000. All grant recipients are required to acknowledge department support in order to receive grant funds, for example, by using the "Massachusetts Grown...and Fresher!" or "Mass. Made with Pride" logos.

The Pick Your Own Farm Guide (available online and in print) gives consumers over 200 farm locations, and other online links promote various specialties (e. g. apple cider or Christmas trees).

More information is available at:

The Division of Markets works to enhance the marketing of New Jersey farm products by developing and expanding markets in both the U. S. and internationally. For example, its Jersey Fresh marketing and promotional program uses newspaper and television advertisements, point-of-purchase displays at supermarkets, and special food and wine festivals and celebrations throughout the year to tell consumers about state farm products. Jersey Fresh matching grants go to agricultural organizations that use the funds for their own promotional or educational efforts.

The Agriculture Division of Rhode Island's Environmental Management Department's Agriculture/Marketing and Promotion unit carries out marketing initiatives and strategies designed to promote Rhode Island grown products and increase the income of local farmers. Since the inception of its promotional programs, such as the Rhode Island Grown program and the farm viability grant, Rhode Island agricultural revenue has risen from $ 38 million in 1980 to $ 141 million in 1993.

Various marketing specialists (covering maple, apples, specialty foods, etc. ) assist farmers in promoting their products. They support the division's goal of encouraging the agricultural industry to be profitable through development of a sound business infrastructure. To this end, the division offers the following requests for proposals to spur business: (1) Business Planning Assistance for Vermont Meat & Poultry Processors, (2) Training for Vermont's Meat Processing Industry Workforce, (3) Plant Modernization Assistance for Vermont Meat & Poultry Processors, and (4) Education and Training Assistance for Vermont's Livestock Producers.

The division offers assistance through grants and support with (1) livestock marketing, (2) business expansion, (3) new business development, (4) local, national and international marketing, (5) fruit and vegetable inspection, and (6) licensing. And The West Virginia Grown program labels state grown products and is a marketing initiative.

Melanie Attwater, legislative liaison for DOAg identified issues viewed as barriers by farmers across the country. These include: (1) environmental policies, (2) tax policies such as the inheritance and gift taxes, (3) labor problems, (4) insurance problems, and (5) transportation issues. She noted a new bill recently submitted to Congress by Representative Simmons at the request of the Connecticut's Farm Bureau, Department of Transportation, and certain legislators to rectify a long standing milk transportation issue involving safety and federal funding (HR 4925).

Attwater pointed to Connecticut's Agricultural Technology Program (CGS § 22-26h) and a new agricultural clusters initiative, similar to agricultural districts, as innovations here. And like numerous states, "Connecticut Creative" sells state specialty foods online at http: //www. state. ct. us//creativestore. htm.

Innovative programs in other states include:

1. Maine's Senior FarmShare Program, which provides fresh Maine-grown vegetables for certain senior citizens;

2. Maryland's tobacco buyout program;

3. Farmer's Market nutrition programs, which allow low income, nutritionally at-risk women enrolled in the Women, Infants, and Children Program (WIC) to purchase farm produce with state vouchers (e. g. , in New York as well as Connecticut).

Several states, including Connecticut, have a farmer's market nutrition program. These programs benefit farmers and consumers. New York's program, for example, provides special checks to low-income, nutritionally at-risk families enrolled in the Women, Infants, and Children Program (WIC) and Senior Meals Nutrition Program. The checks are redeemable for fresh fruits and vegetables at participating farmers' markets.

Funded through a federal grant and state Supplemental Nutrition Assistance Program funds, the program operated at 222 farmers' markets in 55 counties across the state in 1999. During the course of the program, 224,587 WIC families were issued $ 20 worth of farmers' market checks. 786 Farmers redeemed more than $ 2. 8 million in checks.

More information is available at: http: //www. agmkt. state. ny. us/AP/APHome. html#FMNP

The seniors program is a state-private partnership, and the women and infants' program is authorized and co-funded by Congress. Program participants number about 42,500 and receive $ 15 worth of vouchers for the season (one for the mother and one for each child) that can be used at designated farmers' markets. Participating farmers are reimbursed for the face value of the vouchers at any state financial institution.

More information is available at: http: //www. state. ct. us/doag/pubs/fm/farmktpg. htm

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