Ag Budget Fairs Better Than Expected

Charlene M. Shupp
Espenshade
Special Sections Editor

Compared to prior budget proposals, Pennsylvania agriculture faired better than expected with the reinstatement of several eliminated programs.

However, this year’s $68 billion budget still impacts valuable agriculture programs with cuts.

“The 2009-2010 spending plan passed affirms Pennsylvania’s commitment to our number one industry — agriculture. Pennsylvania is well-respected throughout the country for its dedication and innovation in the agriculture industry. The reduced funding levels in this budget are targeted to help us maintain important agricultural programs,” said Rep. Mike Hanna, chair of the House Agriculture and Rural Affairs Committee (D-76).

Republican leaders were not as positive because the signed budget increased taxes. “Businesses across Pennsylvania are closing or downsizing, people are being affected. Taxes are not the answer for these folks as they are already paying more for food, insurance, energy and almost everything else,” said Republican leader Sam Smith (R-66).

Rep. Gordon Denlinger (R-99) echoed the sentiment noting that there is concern because projections suggest a shortfall in the current budget.

In response to the budget, several agriculture organizations said they understand that agriculture’s cuts fall in line with the rest of the state budget cuts, but said several important line items were significantly reduced. The cuts did not start this year, but have been on a steady decline for several years.

“Farmers have consistently said we will take our fair share of cuts in agriculture programs to help Pennsylvania deal with its economic problems. While the approximately 11 percent funding cut for the Department of Agriculture is similar to budget reductions for many other agencies, Farm Bureau is concerned that support was slashed for some programs, including crop insurance assistance, agriculture research, FFA youth organization activities and agricultural promotion and marketing,” said Pennsylvania Farm Bureau (PFB) President Carl Shaffer.

“We are disappointed in the funding allocated to the Department of Agriculture as well as the Department of Environmental Protection. Important programs that provide critical services to the agriculture sector have been cut for the past six years. We understand that these are difficult times and have expressed our willingness to support difficult budget decisions,” said Chris Herr, PennAg Industries executive vice president, “Unfortunately agriculture has been asked to take more than its fair share of the budget pain.”

Pennsylvania Farm Bureau also pointed to the reduction in annual tax credits that will be available for the Resource Enhancement and Protection Act of Pennsylvania (REAP) program, which has been slashed by 50 percent to $5 million in fiscal year 2010 and targeted for additional cuts in 2011.

“Pennsylvania’s reversal in support for the new REAP program is frustrating to farmers who have matched past REAP grants with millions of their own dollars for environmental improvement projects. At a time when more and more environmental expectations are being placed on agriculture, we see it as an inconsistency in public policy, especially as farmers are struggling with other costs,” said Shaffer.

For PASA, their disappointment is with the loss of the promotion grant programs, which are invaluable to connect the consumer with agriculture.

“We were aware (the program) was going to be zeroed out, but even so, it had been dreadfully insufficient for what is needed — which is to connect Pennsylvania farmers with Pennsylvania consumers. That is what’s really needed in this state. Exports are not going to save our farmers like our consumers will,” said Brian Snyder, executive director of the Pennsylvania Association of Sustainable Agriculture (PASA).

“We are pleased that the animal health commission (funding) was kept the same as last year. But we are concerned about the fairs being able to continue with the big decrease in their funding,” said Pennsylvania State Grange Master (President) Betsy Huber. Huber noted that several Pomona and local Granges sponsor fairs in Pennsylvania. Even with the decreased funding, she questions if more fairs will cease to operate.

Budget highlights include:

• Agriculture Excellence, which funds the Centers for Dairy Excellence, Beef Excellence and Farm Transitions, funding holds at $313,000.
• Agricultural Research: cut by more than a half million to $1 million.
• Pennsylvania fair funding, which provides grants for community and county fairs, was cut, but will receive $2 million.
• Funding for the All-American Dairy Show, Keystone Livestock Exposition, 4-H State Horse Show and Pennsylvania Junior Dairy Show, was originally eliminated. The funding was reinstated at $500,000.
• Crop Insurance, including a cost share program for farmers to purchase crop insurance, was cut by 50 percent to $500,000.
• Line items eliminated: Transition to Organic Farming, Product Promotion and Marketing.