December 15, 2004

The Honorable Sheldon Silver
Speaker of the Assembly
Room 349, State Capitol
Albany, New York 12248

Dear Speaker Silver,

As Chairperson of the Assembly Standing Committee on Agriculture, I respectfully submit to you the 2004 Annual Report. I have outlined the Committee’s significant legislation and our outlook for the 2005 Session.

The Committee was successful this year in promoting legislation that was crucial to help family farms remain solvent and profitable by providing funding for critical farm programs and research, reducing regulatory burdens for agriculture, and creating new promotional opportunities for New York-grown products. The Committee also made significant progress toward improving New York's food safety standards and enhancing the humane treatment of domestic and companion animals.

Many issues and challenges face the agriculture industry, especially the small farmer. I look forward to your continued support and leadership in addressing these challenges.

2004 ANNUAL REPORT

OF THE

NEW YORK STATE ASSEMBLY

STANDING COMMITTEE ON AGRICULTURE

William Magee
Chairman

I.  Committee Jurisdiction

II.  2004 Committee Accomplishments

1. Agribusiness Development
2. Farmland Protection
3. Dairy Issues
4. Food Safety
5. Animal Safety and Control
6. Other Issues

III.  Public Hearings and Roundtables

IV.  Budget for Agriculture

V.  Outlook for 2005

Appendix A: 2004 Summary of Action on All Bills Referred to the Assembly Committee on Agriculture

Appendix B: 2004 Agriculture Committee Bills that became law

Appendix C: 2004 Agriculture Committee Bills that passed the Assembly

The Assembly Standing Committee on Agriculture is responsible for legislation that relates to the Agriculture and Markets Law, oversight of the Department of Agriculture and Markets (the Department), and the budget of the Department. The Committee works closely with institutions of higher learning to promote agricultural research and development. The Committee also monitors and, at times, mediates policy disputes and conflicts when agricultural issues are involved.

Some of the major topics investigated by the Committee as part of its legislative and oversight functions include, but are not limited to: food inspections and safety; farmland protection; farm product sales and marketing; agribusiness licensing and regulation; humane treatment of domestic animals and pets; kosher laws; and animal disease. The Committee also works to repeal unnecessary or unenforced laws and programs, if such actions are in the public interest.

The Committee also provides sponsorship, input, and support for agriculturally related program legislation referred to the Committees for Insurance, Energy, Labor, Economic Development, and Environmental Conservation.

1. DEVELOPING NEW YORK’S AGRIBUSINESS

   New York State offers many advantages for food producers and processors. However, as both seek to diversify their operations to keep pace with a rapidly changing marketplace, technological advances and more stringent environmental requirements, the Committee seeks to strengthen the state’s leadership role accordingly. The Chairman recognizes this need and places it at the top of his priorities.

   1. Designating Promotional Trails to Encourage the Sale of New York Agricultural Products

      This Chapter authorizes the Department of Agriculture and Markets to designate farm trails, apple trails, and cuisine trails as a marketing tool to encourage the sale of New York-produced agricultural products. The law also provides that this program will not diminish the New York Scenic Byways Program and authorizes the Department of Transportation to permit the installation and maintenance of signs on the state highway system for trails designated by this act. (A.9436-B, Magee) (Chapter 248 of the Laws of 2004)

   2. Ensuring Payment for Producers of Farm Products

      This Chapter better ensures that producers of farm products will receive payment for farm products delivered to farm product dealers and strengthens the ability of the Commissioner of Agriculture and Markets to recover from an agricultural product or milk dealer who has defaulted in payment to producers any amounts paid from the agricultural or milk producers security funds.

      The law increases producer payment protections in transactions with dealers by replacing the producer’s lien process with a producer trust similar to the one established federally for interstate commerce purposes. The Chapter also provides that the lien for both the agricultural and milk producers’ security funds would be perfected at an earlier date than currently required, giving the lien greater priority over other creditor liens. (A.10898-A, Rules (Magee)) (Chapter 165 of the Laws of 2004)

   3. Clarifying Farmland Viability Grant Eligibility

      This Chapter clarifies the scope of farmland viability grants and requirements for eligibility. The law also includes limited liability companies and managers of farm operations in the definition of an "applicant" and clarifies matching grant requirements. (A. 9520-A, A. Gunther) (Chapter 249 of the Laws of 2004)

   4. Promoting Urban "Greenmarkets"

      This bill would provide for the planning and development of regionally-based urban greenmarkets. Such markets would be similar to existing Farmers’ Markets, but would target the need to provide New York producers with increased market opportunities while assisting with revitalization in cities and urban areas. This would be accomplished by bringing farm products and crafts into such areas and allowing for direct sales to consumers. (A.1810, McEneny) (Passed Assembly)

2. AGRICULTURAL DISTRICTS (Protecting Farmland)

   New York State has approximately 37,000 farms and 7.6 million acres of farmland that produce corn, dairy products, fruits, and vegetables. Unfortunately, the conversion of farmland to forest and suburban housing continues at a rapid rate. Preserving farmland remains an important challenge to State government. Programs proposed by the Assembly Agriculture Committee are directed at ensuring that essential farm operations are recognized by the state regulatory framework and easing financial burdens on farmers.

   1. Making Agricultural Assessments Available to Beginning Farmers

      This law ensures that all qualified beginning farmers will receive an agricultural assessment if they meet the $10,000 gross sales value requirement during their first year of operation. The land would need to be used in a single operation for the production of crops, livestock or livestock products. (A.9437, Magee) (Chapter 10 of the Laws of 2004)

   2. Facilitating Agricultural Assessments in Long Island

      This Chapter extends the taxable status date in the Town of Southampton, Suffolk County, from March 1, 2004, to July 1, 2004. This Chapter allows applications for agricultural assessments or acquisitions of open space to be made under certain circumstances. (A.10398-A, Thiele) (Chapter 129 of the Laws of 2004)

   3. Establishing the New York Beginning Farmer Program

      This Chapter authorizes the Environmental Facilities Corporation (EFC) to provide financial assistance for the purchase of agricultural land, improvements and other agricultural property. The statute also authorizes the issuance of notes and bonds with respect to the Beginning Farmer Program, and directs the EFC to establish and administer this program in consultation with the Commissioner of the Department of Agriculture and Markets. (A.8360-A, Rules (Magee)) (Chapter number pending)

   4. Extending the Agricultural Assessment Program to Orchard or Vineyard Crops

      This law extends the real property agricultural assessment program to new farms that plant capital intensive crops such as orchard fruits and grapes. The statute permits start-up farm operations to immediately become eligible to obtain a real property tax agricultural assessment as opposed to waiting for up to four years. (A.10115-C, Magee) (Chapter 252 of the Laws of 2004)

   5. Consulting on Land Use Regulations Regarding Agricultural Practices

      This bill would authorize the Commissioner of Agriculture and Markets, upon the request of a municipality, farm owner or operator, to render an opinion to local government officials on land use regulations pertaining to agricultural practices. (A.8577, Rules (Cahill)) (Passed Assembly)

   6. Creating the "First Farm Financing Act"

      This bill would create a revolving loan fund through the state Urban Development Corporation that would provide low-cost loans to beginning farmers needing additional assistance to meet down payments or for equipment purchases. The bill would also establish a statewide inventory of farms for sale for the purpose of keeping farmland in agriculture. (A.1787-A, Magee) (Passed Assembly)

   7. Creating an Inventory of Farms and Farmland for Sale

      This bill would assist beginning or expanding farmers with easily attainable information regarding farms and farmland for sale throughout New York State. The bill would require the Department of Agriculture and Markets to initiate and maintain an inventory of farms and farmland for sale in the state. (A.9470-A, Magee) (Passed Assembly)

3. DAIRY ISSUES

   Dairy products are vitally important to the economy of New York State, representing the vast majority of the State’s agricultural industry. New York ranks third in the nation for both milk and cheese production, and is the top producer of these commodities in the Northeast. However, cash receipts - the money farmers actually receive for milk - have decreased significantly. While milk pricing is primarily established by federal order, the Chairman recognizes the continued need to help producers diversify, find new markets for their products and ensure that farmers receive payments in a prompt manner.

   1. Revising Milk Payment Procedures

      This Chapter sets forth a timetable for prompt payments and regulates the changing of suppliers. The law requires retailers and certain other wholesale purchasers of milk to notify and satisfy all existing debts with milk dealers before changing suppliers, provided that the dealer has fulfilled all substantial contractual obligations. An exemption is granted for any school, educational facility or government department, agency, commission or office. (A.1454-B, Tokasz) (Chapter 434 of the Laws of 2004)

   2. Milk Labeling Requirements

      This Chapter authorizes the Department of Agriculture and Markets to declare food as misbranded if it fails to disclose the addition of milk protein concentrates, caseins or caseinates to such products. This provision does not apply to products with a federally-established standard of identity, pursuant to which product ingredients must already be disclosed. (A.8235-A, Rules (Aubertine)) (Chapter 369 of the Laws of 2004)

4. FOOD SAFETY

   Staffing levels at the Department’s Division of Food Safety and Inspection remain a concern to the Assembly Agriculture Committee. The ratio of food inspectors to food establishments in New York State remains dangerously low, with approximately 100 inspectors for over 28,000 stores statewide. Yet, budgetary proposals continue to request the elimination of further positions. The Committee believes that this does not provide adequate protection to consumers from food-borne disease. As sickness from adulteration, improper observation of storage and other sanitary concerns pose a serious threat to public health, the Agriculture Committee passed legislation to enhance the effectiveness of New York’s food safety programs. In addition, the Committee recognized the importance of implementing sound, enforceable kosher and halal statutes.

   1. Providing for the Preparation of Kosher Foods

      This law strengthens consumer protections against false or misleading representations of foods sold or offered for sale as "kosher" by requiring vendors to disclose the basis for their representation that such foods are kosher. The statute is based on the recommendations of a task force convened by Attorney General Eliot Spitzer and Assembly Speaker Sheldon Silver after federal courts declared New York’s existing system for regulating kosher products unconstitutional. (A.9041-A, Rules (Silver)) (Chapter 151 of the Laws of 2004)

   2. Enhancing Food Safety Programs

      This bill would create a nine-member advisory board within the Department of Agriculture and Markets on food safety and inspection programs, which would be responsible for advising the Commissioner on the enforcement of food safety laws and regulations. The Board would also review existing and proposed laws and regulations and report to the Legislature on needed changes. (A.584, Cook)(Passed Assembly)

   3. Ensuring Safe Transportation of Food Products

      This bill would ensure maximum safety and quality of food products during transportation in the state by allowing Department inspectors to examine common carriers transporting food and food products under conditions that could lead to adulteration. Current law exempts common carriers from this provision. This bill would ensure that all food and food products are transported under the safest conditions at all times. (A.9457, A. Gunther) (Passed Assembly)

   4. Increasing the Frequency of Slaughterhouse Inspections

      This bill would require the Department of Agriculture and Markets to inspect every slaughterhouse in the State at least once every year and require each slaughterhouse to post a copy of such inspection. Any slaughterhouse failing three consecutive inspections would be ordered to cease operating until passing an inspection. (A.4169-A, Klein) (Passed Assembly)

   5. Licensing the Manufacture of Commercial Feed

      This bill would require that all persons manufacturing commercial feed would be licensed and would authorize the Commissioner of Agriculture and Markets to deny licensure based on the results of a required annual inspection of facilities. The bill would also establish the Commercial Feed Licensing Fund for licensing monies collected and provide an exemption for persons selling pet and specialty pet food. (A.127-B, Markey) (Passed Assembly)

   6. Notifying Zoning Boards of New Slaughtering Operations

      This bill would require the Commissioner of Agriculture and Markets or his or her authorized agent to notify municipal zoning boards in the event that a business commences additional slaughtering operations other than those for which the Department of Agriculture and Markets has issued a license. (A.10899, Rules (Clark)) (Passed Assembly)

   7. Establishing Food Safety Education Program

      This bill would establish a continuing education program for retail food establishments that hold a state-issued food-processing license. (A.11003-B, Rules (Pheffer)) (Passed Assembly)

   8. Providing Accurate "Halal" Labeling

      This bill would provide clear and accurate information about food labeled "halal" by requiring vendors of food and food products represented as "halal" to make the basis for that representation available to consumers. (A.9638-A, Benjamin) (Passed Assembly)

5. ANIMAL SAFETY AND CONTROL

   New York residents care deeply for the health and safety of their pets. Information gathered during statewide hearings in previous years concerning pet overpopulation continued to inform the Assembly Agriculture Committee's pet agenda for 2004. As the Committee continued its progress toward possible revisions to the Agriculture and Markets’ Article VII laws governing dog licenses, the Chairman prioritized additional legislation to strengthen animal rights and encourage responsible pet ownership.

   1. Improving Dangerous Dog Regulation

      This Chapter improves control over dangerous dogs by increasing owner accountability and giving the courts more discretion when determining the level of dangerousness at which a dog should be confined or euthanized. The law extends the definition of a "dangerous dog" to include any dog that attacks a farm or companion animal and expands court options for the disposition of dangerous dogs while also providing due process for pet owners. The statute also requires that owners of dangerous dogs notify municipal officials of that fact. (A.6635-C, Tonko) (Chapter 392 of the Laws of 2004)

   2. Strengthening Animal Fighting Restrictions

      This law closes a loophole in New York’s existing animal fighting statute that inadvertently allowed breeders to advertise and sell their fighting stock online and in print media. The Chapter makes it a felony to breed, sell or offer for sale any animal under circumstances evincing an intent that such animal engage in animal fighting. (A.8586-A, Rules (Tonko)) (Chapter 190 of the Laws of 2004)

   3. Sanctioning Security for the Care of Abused Animals

      This bill would authorize a District Attorney to bring a petition to require the respondent to post security for the care of an abused animal on behalf of an impounding organization. It would also clarify that all such petitions may be filed at or anytime after an arraignment on animal abuse charges. (A. 380, Englebright) (Passed Assembly)

6. OTHER LEGISLATION
   
   
   1. Improving Efficiencies in Licensing

      This Chapter alleviates unnecessary regulatory burdens and improves efficiencies in administering requirements pertaining to the issuance of licenses for food processing establishments. The new law establishes four licensing periods throughout the year, valid for two years upon issuance, and a simplified schedule of fees. (A.10811, Rules (Magee)) (Chapter 307 of the Laws of 2004)

   2. Optical Scanning

      This bill would authorize the Commissioner to inspect and test optical scanning devices and systems. The Agriculture and Markets law would be updated to include laser scanning equipment within the scope of weights and measures provisions. This equipment scans and registers the price to be charged to consumers for products purchased. An error or malfunction could result in monetary losses to consumers. This legislative proposal seeks to prevent such losses by certifying the accuracy of the laser scanning devices. (A.398, Lafayette) (Passed Assembly)

In 2003 Assembly Agriculture Chairman Bill Magee held a series of regional roundtable discussions to explore approaches to ensure that farming remains economically viable in New York State. While no public hearings were held in 2004, Committee members and staff traveled across the state for a number of informational roundtables and tours, gleaning valuable information from all sectors of the agricultural community on a number of issues. Subject areas included dairy processing, agricultural waste management, sod farming, fruit and vegetable farming, custom slaughter, Farm-to-School marketing, animal husbandry and the effectiveness of the Department of Agriculture and Market’s Pride of New York marketing program. In 2005, the Committee will consider roundtables to address, among other items, language barriers on the farm and the establishment of a statewide distribution system to help our farmers compete at the national level with large distributors.

The continued success of New York State farmers is vital from both an economic and environmental perspective. Since a healthy agriculture industry means jobs for New York residents, the Assembly Agriculture Committee remains dedicated to developing a more integrated and innovative approach to land preservation and stewardship, marketing and regulatory oversight to ensure the prosperity of our farms in the 21st Century and improve the overall economic health of our rural communities.

This year the Assembly reached an agreement with the Senate to allocate over $150 million for the Department of Agriculture and Markets and over $17 million in aid to localities to fund valuable, time-tested agricultural initiatives. Unfortunately, Governor Pataki vetoed the localities portion of this funding in August, dealing a tremendous blow to programs essential to the prosperity of New York growers and processors. It is unclear at this point whether these items will be restored before the 2005 Session. Listed below are the initiatives that were vetoed:

• Agricultural Economic Development ("Grow NY")
  $1,300,000

• Cornell Agriculture in the classroom
  $120,000

• Cornell Apiary Inspection Program
  $200,000

• Cornell Apiary Research Program
  $85,000

• Cornell Geneva Experimental Station
  $600,000

• Cornell Onion Research Program
  $100,000

• Cornell Johnes Disease Program
  $300,000

• Cornell Seed Inspection Program
  $200,000

• Cornell Veterinary Diagnostic Laboratory
  $1,945,000

• New York Cattle Health Assurance Program
  $450,000

• New York State Integrated Pest Management
  $1,037,000

• Farm Family Assistance (New York Farm Net)
  $300,000

• Future Farmers of America
  $135,000

• Integrated Pest Management Grape Entomologist (Fredonia)
  $47,000

• New York State Agritourism Program
  $1,000,000

• Local Fairs
  $453,000

• New York State Apple Growers Association
  $500,000

• Cornell Association of Agricultural Educators
  $40,000

• Cornell Northern New York Agricultural Development
  $400,000

• New York State Marine Resources Council
  $100,000

• Cornell Rabies Program
  $125,000

• New York State Avian Disease Program
  $315,000

• New York State Golden Nematode Program
  $51,000

• New York State Migrant Child Care
  $5,136,000

• New York State Quality Milk Promotion Program
  $1,084,000

• New York State Wine and Grape Foundation
  $762,000

• Clarkson University Dairy Waste-to-Energy Program
  $1,000,000

• Additional Agricultural Economic Development Initiative
  $1,235,000

In this past legislative session, many bills were signed into law that protect and enhance New York State’s valuable agricultural industries. The Committee will focus much of its efforts on continuing to expand marketing opportunities for New York farmers and ensuring the viability of New York agriculture in the 21st century. Pending issues include:

• promoting a statewide distribution and marketing network for New York growers and processors;

• animal care, unwanted pets and dangerous dog control;

• food safety.

Other issues facing the Assembly Agriculture Committee include the establishment of a statewide pricing accuracy law for retail consumers and increasing support for Cornell’s Geneva Experiment Station, which is vital to the development of innovative agricultural practices in New York State.

The Committee will examine these and other issues and will formulate possible legislative solutions, seeking input from all sectors of the agricultural community and the public.

2004 Summary of Action on All Bills Referred to the Assembly Committee on Agriculture

CHAPTERS OF 2004

2004 Bills Passed by the Assembly