December 15, 2003

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 2003 Annual Report. I have outlined the Committee's significant legislation and our outlook for the 2004 Session.

The Committee was successful this year in promoting legislation that was crucial in helping family farms remain solvent and profitable by providing funding for critical farm programs and research, reducing regulatory burdens for agriculture, and enhancing the humane treatment of domestic animals. In addition, the Assembly passed legislation that promotes New York State products and provides support for small farm businesses.

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

2003 ANNUAL REPORT
OF THE
NEW YORK STATE ASSEMBLY
STANDING COMMITTEE ON AGRICULTURE

William Magee
Chairman

STAFF

Joanne Barker, Legislative Coordinator
William Ketzer, Principal Analyst
Caryn Canfield, Committee Assistant
Heather Bates, Committee Clerk
Kathleen Quackenbush, Program and Counsel Secretary

1. Committee Jurisdiction
2. 2003 Committee Accomplishments
   
   
   1. Agribusiness Development
   2. Farmland Protection
   3. Dairy Issues
   4. Food Safety
   5. Animal Safety and Control
   6. Other Issues
3. Public Hearings and Roundtables
4. Budget for Agriculture
5. Outlook for 2004

Appendix A: 2003 Summary of Action on All Bills Referred to the Assembly Committee on Agriculture

Appendix B: 2003 Agriculture Committee Bills that became law

Appendix C: 2003 Agriculture Committee Bills that passed the Assembly

Appendix D: 2003 Agriculture Committee Bills that were vetoed

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. Encouraging Fruit Growing and Processing

This law requires the Department of Agriculture and Markets to promote fruit growing, processing and wine and cider production. The Department will use the Hudson Valley Agricultural Center to promote the production of fruits, wine, cider, vegetables, and other agricultural products. The statute also provides for the licensure of micro-wineries and and directs the Department of Economic Development to promote such businesses. (A.6454, Magee) (Chapter 522 of the Laws of 2003)

2. Supporting the Cultivation of Black Currant and Fruits and Vegetables

This chapter permits the cultivation of black currants in certain designated areas of the state to promote New York's agricultural industry. Previously, the growth of these berries was highly restricted, as it was believed that they contributed to the spread of blister rust in New York's white pine population. Updated scientific analyses have rendered these earlier determinations inconclusive, especially given the development of disease-resistant currant cultivars. (A.6462, Magee) (Chapter 290 of the Laws of 2003)

3. Reconfiguring "Wood Ash" Requirements

This chapter relates to the minimum calcium carbonate requirement for wood ash used as an agricultural liming material. The new law lowers the minimum total neutralizing value to a more realistic thirty per centum equivalence in order for a person to sell, offer or expose for sale, barter, give or otherwise supply such wood ash in New York State. (A.8295, Rules (Magee)) (Chapter 396 of the Laws of 2003)

4. Expanding the Scope of the Domestic Animal Health Assurance Program

This chapter relates to the New York State Domestic Animal Health Assurance Program; it widens the scope of the previous program to include domestic animals other than cattle. The aim of this program is to improve herd health and to further promote a safe and wholesome food supply. (A.8358, Rules (Markey)) (Chapter 361 of the Laws of 2003)

5. 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 the products of farmers and craft businesses into these areas and allowing for direct sales to the customer. (A.1810, McEneny) (Passed Assembly)

6. Establishing Criteria for Farmland Viability Grants

This bill would establish the purposes for which matching grants under the farmland viability program may be awarded. Such grants are awarded for the purpose of preparing or implementing a farmland viability plan to improve farmland profitability and environmental compatibility. This bill would clarify the definition of an "applicant" and the scope of farmland viability plans. (A.6546-A, Gunther) (Passed Assembly)

7. Redefining Commercial Fertilizer

This bill would exempt most agricultural compost from the definition of commercial fertilizer. By exempting compost producers from licensure and other regulations related to the sale of commercial fertilizer (as is the practice in many states), compost producers would be able to more effectively market their product. Although the Governor vetoed this proposal, the Committee is already working with regulators at the Department of Agriculture and Markets to establish a more effective composting law in respect to testing standards and other compost-specific concerns. (A.8497, Rules (Magee)) (Veto memo 162)

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. Expanding Agricultural Districts

This chapter authorizes counties to designate an annual 30-day period during which a farmer can submit proposals to include viable land within a certified agricultural district. The new law would also streamline the procedure for submitting these proposals. (A.3550-B, Magee) (Chapter 523 of the Laws of 2003)

2. Easing Requirements for Agricultural Assessments

This new law allows newly established farms and farmers to receive an agricultural assessment if they meet the required gross sales value during their first or second year of operation. Previously, only farmers meeting a two-year, $10,000 average in gross sales were eligible for this benefit, effectively omitting beginning farmers. (A.6455-A, Magee) (Chapter 479 of the Laws of 2003)

3. Including "Wind Energy" in Agricultural Assessments

This chapter includes certain activities involving the use of wind for power generation in agricultural districts as qualifying for agricultural assessments. Previously, only oil and gas exploration, development, or extraction activities were included, subjecting farmers seeking to provide clean energy solutions for their farm operations and surrounding communities to strict land conversion penalties. (A.6456, Magee) (Chapter 565 of the Laws of 2003)

4. 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)

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 price farmers 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. Updating the Milk Producer Security Fund

This bill would conform provisions of the Agriculture and Markets Law relating to the operation of the Milk Producer Security Fund to provisions of the federal Northeast Milk Marketing Order, which regulates the marketing of most milk produced in New York State. (A.8362, Rules (Magee)) (Chapter 506 of the Laws of 2003)

2. Redefining "Milk"

This bill would exclude any product containing milk protein concentrates, casein or caseinates from the definition of milk. The Governor disapproved the bill on technical grounds, which the Assembly will address in the 2004 session. (A.7308-A, Aubertine) (Veto memo 174)

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. The Committee believes that this does not provide adequate protection to consumers from food-borne diseases. As sickness from adulteration, improper observation of storage and other sanitary concerns continue to 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 Chairman recognizes the importance of implementing a sound, enforceable kosher statute. Unfortunately, the Senate did not act on any of these measures.

1. 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)

2. 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 regulations exempt 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.1585, Gunther) (Passed Assembly)

3. 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 their inspection. Any slaughterhouse failing three consecutive inspections would be ordered to cease operating until they passed an inspection. (A.4169, Klein) (Passed Assembly)

4. Providing for the Preparation of Kosher Foods

This bill is based on the recommendations of a Task Force established by Attorney General Spitzer and Speaker Silver after federal courts declared New York's existing system for regulating kosher products unconstitutional. It would strengthen 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. (A.9041, Rules (Silver)) (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 2003. As the Committee considers possible revisions to the state's Article VII licensing laws governing dog licenses, the Chairman prioritized legislation to strengthen animal rights and encourage responsible pet ownership.

1. Providing for Appropriate Shelter for Dogs

This law will protect dogs from health risks and death by requiring appropriate shelter for those left outside in inclement weather. It would provide standards for compliance and sanctions, including a range of fines, for failure to comply. (A.8679, Rules (Paulin)) (Chapter 594 of the Laws of 2003)

2. Expanding the Definition of "Detection Dogs"

This chapter includes dogs used or undergoing training to detect ignitable liquids within the definition of "detection dog" so that this class of professional working dogs and their handlers may also qualify for the exemption of certain fees and unobstructed access to public places. (A.5452, Weisenberg) (Chapter 287 of the Laws of 2003)

3. Sanctioning Security for the Care of Abused Animals

This bill would authorize a District Attorney to bring a petition for the posting of 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. Facilitating Seed Labeling, Inspection, and Sale

This chapter makes technical corrections relating to the scientific names of certain seeds and amends provisions relating seed labeling, inspection and sell-by dates. Further, the law seeks to facilitate the interstate movement of seeds by conforming certain provisions relating to the inspection and sale of seeds to the model Uniform Seed Law and correcting the taxonomic names of noxious weed seeds. The procedure for taking seed samples is also revised. (A.8356-A, Rules (A. Cohen)) (Chapter 592 of the Laws of 2003)

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)

1. Farming for the Future - Keeping the Industry Growing and Attracting the Next Generation

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. These informal meetings focused on how New York can insure the survival of its farms, support local government farming incentives and benefit from the experience of economic development officials, agriculture and farm experts, Cooperative Extension staff, agricultural lending institution personnel, farm attorneys and, most importantly, farmers and producers.

With forums held thus far in Niagara, St. Lawrence and Sullivan counties, input was sought to strengthen Chairman Magee's initiative to establish AgriDevelopment Zones in New York State (A.2083). Modeled after the Assembly's successful Empire Zones program, the bill would provide specific relief to farms located within such zones, targeting these areas for extraordinary economic and resource development - assistance that most farmers cannot currently receive from traditional Empire Zones due to eligibility requirements that require applicants to demonstrate a capacity for job creation. The roundtable also sought input on how to make farming more appealing to younger generations. The Agriculture Committee gleaned valuable information from all sectors of the agricultural community on a number of other issues, including the effectiveness of the Department of Agriculture and Market's Pride of New York marketing program, concerns with product distribution and what can be done to help farmers sell products directly to wholesalers and retailers.

The continued success of our New York State farmers is vital from both an economic and environmental perspective. Sound farmland preservation policy must remain within the context of the continued profitability and viability of our farms, farmers and the agriculture industry as a whole. Since a healthy agriculture industry means jobs for New York residents, the roundtables revealed that a more comprehensive approach must be developed to ensure the prosperity of our farms in the 21st Century and improve the overall economic health of our rural communities. Further meetings on these topics are expected.

$12.8 Million Allocated for
Agriculture Initiatives

Budget Keeps Successful Programs Strong.

This year the Assembly secured $104 million for the Department of Agriculture and Markets and $12.8 million in aid to localities, which included:

• Agricultural Economic Development ("Grow NY")
  $1,300,000
• Cornell Agriculture in the classroom
  $60,000
• Cornell Apiary Inspection Program
  $100,000
• Cornell Geneva Experimental Station
  $350,000
• 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
  $350,000
• New York State Integrated Pest Management
  $787,000
• Farm Family Assistance (New York Farm Net)
  $300,000
• Future Farmers of America
  $100,000
• Integrated Pest Management Grape Entomologist (Fredonia)
  $50,000
• Local Fairs
  $477,000
• New York State Avian Disease Program
  $315,000
• New York State Golden Nematode Program
  $51,000
• New York State Migrant Child Care
  $4,421,000
• New York State Quality Milk Promotion Program
  $1,084,000
• New York State Wine and Grape Foundation
  $512,000

In this past legislative session, many bills were signed into law that protect and enhance New York State's valuable agricultural industry. 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:

• farm profitability, including milk prices
• marketing and distribution of agricultural products
• animal care, unwanted pets and dangerous dog control
• food safety.

Other issues facing the Assembly Agriculture Committee include establishing a first time farm-owner loan program, implementing 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.

APPENDIX A

2003 Summary of Action On All Bills Referred to
the Assembly Committee on Agriculture