By Danielle Penney-Stroop, NEAFA President
Greetings and Happy Spring to all! Just a few days ago was our first 70-degree day throughout much of NY, and last night I heard peepers echoing and singing in the distance. The lawns and fields have green hues popping through, and tractors and equipment are rolled out of storage to be prepped for field work. All signs that spring is fast approaching. Today as I write this, it is a grey rainy day and all I see at the moment are muddy pastures along with some very muddy cows and horses. I know this is a transition phase we all endure that ultimately leads to a very rewarding, productive, and bountiful time of year.
I think that perspective is critical as we collectively navigate the unsettling times ahead in the Northeast agricultural industry. We are still collaborating with the GROWNY campaign to fight the 40-hour OT threshold for agricultural workers in NYS. We are all in agreement that moving to 40 hours is detrimental to the viability and competitiveness of NY family farms.
Highlights Regarding the wage board decision:
➢ Keep threshold at 60 hours; over 2/3 of testimonies from producers and their farmworkers support the 60 hour threshold.
➢ Run the risk of less acreage being farmed resulting in less food being harvested and distributed, farmworkers looking for 2nd jobs or relocating, or ultimately farms closing and selling out entirely.
Asks of the Governor and Legislature on Overtime Tax Credit:
➢ Multiplier policy to cover increase costs of FICA, Unemployment, Disability Insurance, and Workers Compensation
➢ Make the tax credit refundable on a quarterly basis
➢ Allow OT estimation for the following quarter to allow farms to cover the periods of planting and harvesting
➢ Make tax credit permanent and equal for all sizes without caps
➢ If full funding from the Overtime Tax Credit is not included in the final state budget, the OT threshold shall revert to 60 hours until a budget is passed that includes full funding.
➢ Additional Ask of Support for:
o Doubling workforce retention tax credit
o Increasing in the investment tax credit from 4 to 20% and making it refundable
o Updated adjustments to housing allowance (S.1663-Skoufis)
Challenges currently facing the agricultural industry continue with our supply chains. We are simultaneously experiencing supply driven inflation, as well as demand driven inflation. We are facing potential increases of interest rates from the feds, increases tp energy costs, and greater volatility due to world events and conflicts. Even with our higher input costs (energy, fertilizer, labor), there should be higher commodity prices with milk and grains. Earnings are expected to be higher in 2022 along with overall better top line revenue, even considering higher input costs and lower government support. Thank you to Chris Laughton from Farm Credit East for sharing his insight and perspective at the NEDPA Dairy Management Conference on March 9 and 10th.
Congratulations are in order to the NEDPA organization for conducting a phenomenal 2-day conference and annual meeting. What a great opportunity for producers and sponsors to interact and engage in such informative and uplifting presentations. The pre-conference featured eight industry sponsored presentations on labor issues, economic considerations, genetics for future, technology advancement with robots, and forage applications. The theme for Day 1 — Strengthen your team, Stay positive and Enhance Productivity. The theme for Day 2 – Building Resilience and Professionalism, Sustainability for the Future, and Generations Working Together. If you are not yet a part of the organization, I encourage you to join as an affiliate member.
On Monday, April 4th, the NEAFA board will be conducting its second board meeting of this year, just prior to the Herd Health and Nutrition Conference. We hope to see many of you at the reception on Monday evening and at the conference the following day, April 5th. We will hear progressive speakers offering their insight and expertise on Immune development in calves, Utilizing Fatty Acids to Boost Profit, Value of Lying Time for Cow Comfort, Heat Stress Mitigation, and a panel on the Feeding and Management of Robotic Parlors.
Additionally, our committees have been working diligently behind the scenes for NEAFA the past couple months and I look forward to sharing those updates in the April newsletter.
In closing, even though times may seem extremely difficult and there are some bleak situations and outlooks that potentially lie ahead for us…. Please don’t forget that We are an agrarian culture and we epitomize resourcefulness, adaptability, and resiliency.