RECOMMENDATIONS FOR

POLICIES TO SUPPORT VERMONT AGRICULTURE

 

October 2002

 

Vermont needs to do more to allow its farms to thrive.  The well being of Vermont’s economy, environment and communities depends on the vitality of the working agricultural landscape. Farms directly contribute over $500 million each year to the Vermont economy.  Farms provide an important bulwark against sprawling development.  Farms contribute to Vermont’s quality of life that attracts high wage jobs.  Compared to developed land, farms cost towns far less for town services such as roads, sewers and schools.   The following are recommended policies that can enable farmers to succeed economically and continue to provide long-term benefits to all Vermonters.

 

1.      EXPAND OPPORTUNITIES FOR AGRICULTURAL OPERATIONS TO RECEIVE BUSINESS TAX INCENTIVES & BUSINESS INVESTMENTS

  • Target tax incentives for farmers and agricultural enterprises similar to those provided for manufacturing and technology through the Vermont Economic Progress Council. 
  • Focus efforts on measures that will allow farmers to receive a higher share of the consumer dollars spent on food.
  • Leverage capital devoted to maintaining and rebuilding farm infrastructure.

 

2.   CREATE A FARM VIABILITY ENHANCEMENT PROGRAM

  • Provide farmers with targeted and farm-specific technical and professional expertise in developing business plans that suggest ways to increase on-the-farm net income.
  • Methods include improved business and management practices, diversification, direct or joint marketing, value-added initiatives, agri-tourism, transfer, and estate planning issues.
  • Provide funding to farmers to implement specific and measurable elements of the plan.

 

3.   REDUCE FARM TAXES

  • Reduce Use Value Appraisals – Revise the current use program to reduce the use value appraisal for farm buildings from 30% of the fair market value to 0%.
  • Sales Tax Exemption -- Exempt agricultural inputs from sales tax, including products used for agricultural operations as well as agricultural products produced on the farm.  
  • Property Transfer Tax Exemption – Exempt from the property transfer tax land that will be actively operated or leased, as part of a farm enterprise. 

 

4.   IMPROVE PRICES FARMERS RECEIVE FOR MILK

·        Advocate for changes in the marketplace and the federal pricing system to ensure a fair price for the milk that farmers produce.

·        Enable farmers to receive a higher share of consumer dollars spent on milk and milk products.

 

5.   ENHANCE SUPPORT FOR BEGINNING FARMERS

  • Improve coordination of existing programs that benefit beginning farmers.
  • Invest new dollars where they fill in gaps or leverage federal support.
  • Integrate financial support with efforts that educate and encourage new and beginning farmers to conduct business management, market, and financial planning.

 

6.   INCREASE SUPPORT FOR FARM DIVERSIFICATION

·        Facilitate financing for diversification or expansion of existing farms, through such measures as adding another animal breed or financing an expansion to produce value-added products or retail sales, and helping to reach new local and regional markets. 

·        Provide financial support for infrastructure improvements needed for new operations.

  • Maximize the use of existing federal grant or loan programs to provide needed funding.   In some areas, available funding goes unused.   

     

7.   EXPAND STATE PROCUREMENT AND LOCAL SALES OF VERMONT AGRICULTURAL PRODUCTS

  • Expand the preference for state purchase of products grown or produced in Vermont.
  • Require state funded institutions and events to have at least 20% of the total dollar value of food expenditures to be for products  grown or produced in Vermont.
  • Enhance facilities and infrastructure to allow the supply of a consistent volume and quality of agricultural products.

 

8.   CONTINUE FARMLAND PROTECTION EFFORTS

·        Maintain support for farmland protection programs and use state funds to maximize use of available federal funds.

 

Over the past few months, the following organizations and individuals have worked to develop these recommendations to enhance the economic success of Vermont farms. 

Roger Allbee, Allbee & Associates

Alice Allen, Dairy Farmer

Sam Burr, VT Legislative Council

Lyle Edwards, Dairy Farmer

Nancy Everhart, Vermont Housing & Conservation Board

Wayne Fawbush, Vermont Sustainable Jobs Fund

Vern Grubinger, UVM Center for Sustainable Agriculture

Deb Heleba, LandLink Vermont

Annette Higby, Attorney, Conservation Law Foundation Advisory Board Member

Con Hogan, Independent Candidate for Governor

Steve Justis, Vermont Department of Agriculture Food & Markets

Lindsey Ketchel, Intervale Foundation

Hon. Sara Kittell, Vermont Senator

David Lane, Intervale Foundation

Alexis Latham, Rural Vermont

Sandy Levine, Conservation Law Foundation

Hon. Virginia Lyons, Vermont Senator

Allen Matthews, UVM Center for Sustainable Agriculture

Tom Berry*, Senator Jeffords Office

Art Menut, Vermont Farm Bureau

Jenny Nelson, Dairy Farmer, Representative Sanders’s Office

Bob Paquin*, Senator Leahy’s Office

Pat Sagui, Rural Vermont

Mark Schroeder, Agriculture Economist

Mark Sinclair, Conservation Law Foundation

Dan Smith, Former Executive Director, Northeast Interstate Dairy Compact

Annette Smith, Vermonters for a Clean Environment

Hon. Bobby Starr, Vermont Representative

Rick Wackernagel, Agricultural Economist

Marian White, Vermont Department of Agriculture

John Winski*, Staff, US Senate Judiciary Committee

Enid Wonnacott, Northeast Organic Farming Association of Vermont (NOFA-VT)

Alex Wylie, Vermont Land Trust

 

 

 


 

 

* Worked on issues that have a federal component