By Hinman Straub
Funding Requests
$125,000 in Additional Funding for PRO-DAIRY
The Executive Budget proposal reduces support for PRO-DAIRY BY $125,000 from the SFY 26 Enacted Budget. NEAFA strongly supports restoration of this funding.
In addition to this restoration, an additional investment of $1 million in PRO-DAIRY is needed. If appropriated, the funding would be utilized as follows:
· $500,000 would fund five new positions.
o Two Farm Business Management specialists
o One Dairy Nutrition specialist.
o One Animal Well-Being specialist.
o One specialist in youth/emerging farmers.
· $500,000 for applied research and extension support.
$5 Million in Operational Funding and $5 Million in Capital Funding for Cornell University’s College of Agriculture and Life Sciences (CALS)
Cornell CALS is New York State’s land-grant college, part of the SUNY system, and a critical partner to farmers, foresters, food producers, and communities across the State. For over 150 years, through its statewide research farms, forests, and extension programs, CALS delivers practical, science-based solutions that strengthen agricultural productivity, environmental stewardship, and rural and urban economies alike.
At a time when New York agriculture is experiencing both significant opportunity and growing pressure, rising production costs, labor shortages, climate variability, and aging infrastructure, this investment is both timely and necessary. New private-sector investment, particularly in dairy manufacturing, underscores the importance of maintaining strong public investment in the applied research and extension capacity that supports farm viability and sustainability.
Operational funding is needed to maintain core staffing and statewide programming in areas such as dairy, maple, specialty crops, and forestry. Capital funding is essential to repair and modernize aging research infrastructure so that on-farm trials, technology development, and regionally relevant research can continue to serve producers throughout New York. This request represents a strategic investment in food security, environmental resilience, and economic development, and reinforces New York State’s long-standing partnership with its land-grant institution.
$150,000 in Additional Funding for Dairy Profit Teams
In addition to supporting the Executive proposal to continue to provide $700,000 for the Dairy Advancement Program (DAP) and $374,000 for Dairy Profit Teams, increased funding is needed. Demand for the services offered by these programs exceeds the supply supported by current funds. DAP funds are used by small farmers that seek to grow their businesses and adapt to the current financial and business environment.
Increase Funding Support for the Cornell University Ruminant Center (CURC) to $500,000 ($125,000 Increase)
CURC is the leading American university dairy research facility that is best equipped to conduct studies at the scale needed to identify strategies that will improve the production of milk and milk-components, decrease the intensity of GHG emissions, and safely evaluate the true capabilities of what the dairy industry can accomplish while improving milk production efficiency and mitigating climate-related challenges. An additional investment of $125,000 is needed.
Increase Funding for the Center of Excellence for Food and Agriculture to $1.25 Million (Restoration of $354,545)
The New York State Center of Excellence for Food and Agriculture at Cornell AgriTech serves as a hub connecting businesses and entrepreneurs with the services they need to succeed. The Center of Excellence works with partners across the State to increase the size and scope of the food and agriculture economy in New York by fostering the growth of new companies, new products, and existing businesses.
$250,000 in Additional Funding for PRO-LIVESTOCK
Livestock farms in New York produce nutrient-dense protein to feed our residents and provide critical ecological benefits on millions of acres of land across the State. As this industry grows, sustained education and research will be required. Last year, $250,000 was included in the Enacted Budget to support two PRO-LIVESTOCK positions within Cornell to assist livestock farms in New York State as they work to enhance silvopasture practices and carbon sequestering management to create climate resilient farms while strengthening food and fiber. Restoration of this funding is required.
$1.5 Million in Funding for FarmNet (Restoration of $100,000)
In addition to supporting the Executive Proposal to provide $1.4 million, a restoration of the $100,000 to this network of 46 consultants across the State is needed. These practitioners are in place to respond to farmers’ requests for assistance. Professional financial and mental health consultants help farm families and businesses deal with the financial and emotional issues characteristic of an industry under severe stress. In 2021, FarmNet professionals worked with over 729 farmers on issues ranging from economic and mental health to business and estate planning.
Policy Requests
Farmers and the agribusiness industry have not been immune from the rising costs many businesses are grappling with. These costs are eating into already narrow profit margins and driving up the costs of many products. This is especially challenging in the dairy industry, as milk prices are federally regulated.
Litigation Reform
The Executive Budget includes several proposals that if adopted would help address some of the major cost drivers that dramatically increased in recent years. One of those is the size of jury verdicts and settlements. NEAFA supports these proposed changes and urges their enactment.
Reducing Unnecessary Litigation. This proposal would:
Modify the definition of “serious injury” to eliminate often manipulated criteria;
Limit the amount of non-economic damages from being awarded to uninsured motorists, individuals convicted of driving while impaired, and individuals committing a felony or fleeing one at the time of the accident;
Adopt a common-sense rule that permits recovery of non-economic damages only if a plaintiff is not primarily at fault for causing an accident; and
Ensure that defendants in multi-party personal injury auto cases are held responsible only for the damage they cause, not damages caused by other unrelated defendants.
Impose Market-Based Interest Rate on Court Judgments. The proposal would require that interest on judgments and accrued claims be calculated using the one-year U.S. Treasury bill rate.
Insurance Reform
Rising insurance costs and inability to secure coverage are another significant issue for NEAFA members. NEAFA supports the proposals to address the rising costs of insurance.
Premium Increase Explanations. This proposal would require insurers to automatically disclose, on either the premium bill or declarations page, both the dollar amount of any renewal premium increase exceeding 10 percent (excluding increases due to added insured value) and a written explanation identifying the factors driving the increase. For other motor vehicle and residential property policies, insurers would be required to provide a prominent notice advising policyholders of their right to request a written explanation of premium increases.
Automatic Property Insurance Premium Reductions. The proposal would require insurers to offer discounted premium rates to homeowners and commercial property owners who make improvements to their property that contribute to the safety and security of the insured structures.
Extend the Excess Profit Law for Automobile Insurance. This proposal would extend the duration of New York’s motor vehicle insurance “excess profits” refund requirement by three years, through June 30, 2029. This law requires automobile insurers making profits that exceed a certain threshold to return portions of those profits directly to policyholders.
Taxes
NEAFA’s members support the following tax-related changes included in the Executive Budget proposal.
Extending the Refundability of the Investment Tax Credit for Farmers. This proposal would extend the period during which eligible farmers may elect to receive unused investment tax credits (ITCs) as a refund until January 1, 2033.
Transfer of Authority to Administer Marketing Orders. This proposal would establish the Dairy Promotion Act which would authorize the Commissioner of Agriculture and Markets, with approval from a majority (51%) of milk producers in the regulated area, to create dairy promotion orders that fund and oversee statewide or regional efforts to increase the consumption of milk and dairy products.
Standardize the Definition of Farmer for Certain Tax Credits. This proposal would standardize and broaden how farm income is calculated for purposes of various agricultural tax credits and exemptions. This change would apply to the following credits:
Farm workforce retention credit.
Farm employer overtime credit.
Credit for farm donations to food pantries.
Agricultural Property Tax Credit.