VERMONT AGRICULTURE VIABILITY COUNCIL

RECOMMENDATIONS, 2003

 

GOAL:      Governmental Policy Coordinate and Focus the Development of Agricultural Policy in Vermont.

                          

(1) The General Assembly should establish a “Secretary of Agriculture” to lead the “Agency of Agriculture”.

 

(2) The Governor should appoint a “Council on Agriculture” to assist the Agency as it develops long-term vision, agricultural policy, and strategic goals for agriculture in Vermont.                                                           

 

(3) The Senate Agriculture Committee should have equal standing with all other Senate committees.

 

(4) The Legislature should ensure that Vermont farmers continue to be able to choose business models and technologies that they believe will maximize their chances of success.

 

(5) The Vermont Economic Progress Council (VEPC) should continue to develop its plan for the agricultural sector.  In addition, VEPC tax credits should be systematically promoted to agricultural enterprises that meet its standards for investment.

 

(6) In order to remain competitive, Vermont must promote research and maintain its research infrastructure.  Toward that end, the Legislature should annually review the research plans and accomplishments of the Vermont Agriculture Experiment Station at the University of Vermont.  The Experiment Station’s research should be consistent with the current needs of the State but also reflect future opportunities.

                                                                          

(7) The Legislature should contract for an economic evaluation, including economic impact modeling, of the role and value of agriculture in the Vermont economy.  (Estimated cost $15,000)

 

(8) The Governor should appoint a representative from the agricultural community to his Council of Economic Advisors.

 

 

 

 

GOAL:      Farm Profitability – Improve the Profitability of Vermont Farms by Lowering Costs, Supporting Good Management, and Avoiding the Imposition of Barriers to Farm Development and Growth

 

(1) The Legislature should establish a “Farm Viability Enhancement Program” (cost estimated to be $500,000 annually).       

 

 (2) The Legislature should continue to assess the effect of State tax policy on farm profitability.

Ø      Agricultural lands in the Current Use Program should be exempted from the Education Property Tax (cost and benefit estimated $2,000,000 annually).                                                  

Ø      Special purpose farm buildings should be tax exempt (an estimated $930,000 benefit to VT farms).     

Ø      Capital gains taxes should be eliminated on farm assets sold to another farmer or to a new farmer (“farmer” as defined by Current Use).

 

(3) The Legislature should ensure that Vermont farmland conservation dollars are spent on the conservation of working farms. 

 

(4) Vermont’s Congressional delegation should seek opportunities to reauthorize the Northeast Dairy Compact (cost to the state estimated to be $100,000 annually).

 

(5) In order to establish a price mechanism formula that reflects the dairy farmer’s cost of production: the Vermont’s Congressional delegation should petition USDA to hold hearings to amend the Federal Milk Market Orders in order to incorporate a monthly adjustor for the establishment of Class I and II prices that reflect the regional cost of production.

 

(6)  Vermont’s Congressional delegation should continue to encourage USDA to use its programs and resources (such as the Dairy Export Incentive Program, Foreign Agriculture Services’s Market Access Program and CCC purchases) to facilitate greater returns to producers.

 

(7) Vermont’s Congressional delegation should continue to urge the U.S. Department of Justice to investigate proposals that would unduly concentrate the processing and marketing of milk and dairy products and should ask it to expand its investigation to include effects on the returns to dairy farmers.

 

(8) In order to improve the regulatory climate for agricultural businesses in Vermont, the Department of Agriculture should investigate regulations for the processing and marketing of agricultural products based on risk and scale. 

 

 

 

(9) It is critical that the State maintain regulations that are cost effective and limit the potential for the initiation of nuisance suits.  Toward that end, the Legislature should quantify the effect of proposed regulations on the profitability of agriculture before enactment.  The Legislature should not enact laws that will affect agricultural profitability without a clear understanding of any effects.  

 

(10) The Department of Agriculture must also “push back” and investigate with the EPA and federal regulators its options to conduct functional vs. regulatory reviews.

 

GOAL:      Marketing – Increase the Sales and Value of Vermont Products through a Comprehensive, Coordinated Marketing Strategy Built upon the “Vermont Brand”

 

(1) The Department of Agriculture should plan and institute a “Buy Local” Initiative to promote the purchase and production of Vermont Farm Products by Vermonters and visitors within the State (expected costs included in DOA marketing funds).

                                                                                                        

(2) The Legislature should identify a sustainable funding source and provide consistent and adequate funding to the Department of Agriculture for agricultural development and marketing (expected annual cost, $250,000).  The Legislature should provide the Department of Agriculture the funding necessary to allow the Agricultural Resource Center (ARC) to expand its services to Vermont’s diversified sectors (expected annual cost, $50,000). Commodity groups that seek state promotional funds should match those funds.

 

(3) Vermont’s governmental agencies should coordinate their marketing funds to provide the strongest leverage of the “Vermont brand” for agricultural products. 

 

MAPS (Marketing and Promotion Team), currently chaired by the Commissioner of Tourism and Marketing, should be chaired by the Secretary of Administration. 

The State’s agencies should submit marketing plans that include measurable goals.

 

 

GOAL:      Agricultural Transitions – Encourage Vermont Agricultural Enterprises to Change to Meet New Market Opportunities

 

(1) The Department of Agriculture should seek federal funding to build a Vermont value-added agriculture fund to provide jump-start grants supporting value-added processing in Vermont, then systematically match grants with loan funds from the private sector, VEDA and other sources.  (Approximate Federal Request:  $400,000)

 

(2) The Legislature should authorize and fund a guarantee program to encourage private sector financing of value-added processing in the State.

 

(3) The Legislature should authorize VEDA to loan capital at low rates for investments in farms and value-added agricultural enterprises.   

 

(4) The Vermont Congressional delegation should seek to amend appropriate enabling legislation in order to allow the Farm Credit System and commercial lenders to make equity investments in value-added agriculture. 

 

GOAL:      Education – Prepare a New Generation of Farmers and Consumers

 

(1) The University of Vermont, the Vermont Agricultural Experiment Station and

the Extension System should collaborate, wherever possible, with other New

England and New York institutions of higher education – in particular, Cornell

University – in the creation and execution of educational opportunities for farmers

and food product marketers.   

 

(2) The “2+2” farm program scholarship funding should be moved from the

Vermont Department of Agriculture to the Vermont Student Assistance

Corporation with established criteria to support Vermont students at UVM or VTC. 

The Vermont Extension Service should ensure the coordination of “2+2”with the

financial support for beginning farmers available through the Vermont Department

of Agriculture, the Farm Service Agency and VACC.

 

(3) The Departments of Agriculture, Education and Labor should undertake an

assessment of agricultural workforce needs and the development of programs to

support Vermont’s agricultural industry in the state’s vocational system.

 

(4) The Department of Education should revise the science, math and technology

sections of the Vermont Framework of Standards to include Vermont agriculture as

an integral part of the natural resource economy.  This revision would ensure the

integration of agriculture into pre-K through 12 school curriculums.

 

(5) The Department of Education should draft and recommend a model food

policy for local school districts to consider.  Such a policy would provide guidelines

for nutrition education, farm and gardening activities, food served in schools, and the

purchasing of local farm products for school food services. 

 

(6) The Vermont Department of Education should develop and distribute a “best

practices” model to encourage the use of Vermont agricultural products in school

food programs.  This model should be shared throughout the state through the

Vermont Department of Education’s Child Nutrition Programs and also the local

schools’ food advisory councils.