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Following a report from the state comptroller’s office, farmers agree they need more support from the state, however updated statistics are important to get an accurate picture of what is happening in New York agriculture.
DiNapoli cites a need to balance support for farms with other state priorities.
“It is very important to us that we maintain support for the farms and for farmers and I think that in New York, we’re largely talking about smaller and family-owned farms. That’s also a very positive aspect of farming in New York that we need to celebrate and support,” state Comptroller Thomas DiNapoli said in an interview.
Farmland loss to solar energy facilities
Renewable energy needs have been a priority for New York state, and agriculture is not immune to that push. Solar facilities have taken 1,728 acres of farmland, equivalent to 0.5% of farmland lost from 2017 to 2022.
“The key thing is balance. I think it's an issue that needs greater studies so that we can focus on the siting of solar facilities on land that would not be deemed the most productive farmland. I think a more complete analysis of where there are opportunities that don’t compromise keeping key farmland available because that’s one of our concerns,” DiNapoli said.
New York lost a larger share of farms and farmland than all its neighboring states and the nation as a whole, according to DiNapoli’s report.
“We don’t want that to be accelerated in the effort to meet our very ambitious climate goals in New York, as important as that is, but we need both to keep our farmland in productive use and also in a way that helps the farmers. If they can be part of meeting our goals on renewable energy, that’s great but we need to do both,” DiNapoli said.
Natasha Sutherland, a third-generation dairy farmer and herd manager at Stein Farms in LeRoy, helped the farm put about 1,000 acres into a conservation easement in September 2023, meaning the land will always remain in agricultural production or as greenspace protecting it from development. The farm had to apply for two separate easements because of limits from the state.
“We couldn’t do it all under one protection plan. We had to submit twice and that just seems really wasteful,” she said.
She would like to see farmland protection limits increased to accommodate the change in the size of farms in New York.
“There are caps and there are limits on funding but solar has no cap. There is money for solar in magnitudes larger than these government programs can even consider touching. Those limitations, considering the size of farms we need to protect nowadays, are truly limiting factors,” Sutherland said.
Labor on New York farms
The report from the comptroller’s office shows that labor expenses increased by 68% from 2012 to 2022, which was prior to the implementation of lowering the overtime threshold in 2024.
“Farm labor expenses have ballooned. It is climbing at a rapid rate, and we’re trying to keep that under control, but we have zero control over the price of our commodities,” Sutherland said.
She estimates that their labor expenses have increased by 15% from 2023 to 2024 while milk prices have remained the same.
“I’m shocked at how behind the times [the report] is. We’re approaching the beginning of 2025, why are we talking about 2022?” Sutherland said.
The comptroller’s office doesn’t have a breakdown of how labor costs for other industries compare to agriculture, but DiNapoli said labor expenses have gone up across the board post-pandemic. However, he said farmers should take advantage of the overtime tax credit available to them.
“Let’s see how the incentives that we have on the books now are being of help and as the requirements continue to be implemented over time there may be a need to enhance those tax credits and those tax benefits,” DiNapoli said.
During a public hearing for the Assembly Committee of Agriculture on Wednesday, Northeast Dairy Producers Association representatives testified to the need to ensure timely and fair execution of the tax credit.
“Some farms have tried to limit hours their employees work to control costs, but employees do not like this, and some have sought employment in other states,” said Allyson Jones-Brimmer, vice president of regulatory and legislative affairs of NEDPA.
Additionally, Gov. Kathy Hochul has not signed the bill passed by the Assembly and Senate correcting an interpretation technicality in the overtime threshold law that excluded some farms from being eligible for the tax credit.
“As the overtime threshold continues to be lowered and the cost of doing business goes up, timely payments of these credits and reimbursements will be vital to family farms in New York. We respectfully encourage you all to see just how dire the economic situation is for these farms if we do not fix the overtime credit immediately,” Jones-Brimmer said during the hearing.
Tight profit margins
Diversification of income has been important to farms struggling with tight profit margins. Agritourism and recreation had a 78% increase in income from 2012 to 2022 and was the biggest jump in income categories on farms.
The report, however, also found that 58.3% of farmers list their primary occupations as something other than farming. In addition, 28% of farms had less than $2,500 in sales in 2022.
Bryan Lord, an agricultural loan officer and farmer, raises corn, soybeans and wheat on 170 acres in Leroy that he rents.
“For us, it was being able to start off by renting my aunt’s farm,” Lord said. “Our farm stands on its own as far as paying taxes on the property, but we did have to buy machinery and equipment, so I financed all of that and now my farm pays for all the payments now,” Lord said.
Lord said he and his wife both work full-time jobs, but during the busy season spend an additional 40 hours a week on the farm. The biggest barrier to entry for agriculture is land access and capital to purchase equipment.
“If we had to purchase land, it would be a very different scenario. If the correct opportunity came up, it would be funded by our [full-time] jobs,” he said.
Every farming operation is different, but this setup works for the Lord family.
“It does what it’s supposed to do and at the end of the day, my agricultural ventures are paying for themselves so in my wife and I's eyes, that’s success for us,” Lord said.
As input costs remain high and commodity prices volatile, many farmers struggle with tight profit margins making it difficult to continue their operations leading to the consolidation of farms.
“The USDA [Agriculture] census showed a 143% increase in the cost of production for New York farms from 2017 to 2022. In order to keep family dairy farms viable in New York state for the future, we need to slow the pace of change and make strategic investment,” Jones-Brimmer said.
Despite these difficulties, continuing to offer support for farmers is crucial, she said.
“As we look at rising labor and capital costs, we need to continue to work together. We cannot lose sight of how important farms are to rural economies, to food and national security, and to the overall economic viability of New York state,” Jones-Brimmer said.