Loon Lake, Town of Wayland, Steuben County, New York, surrounded by farmland.
Loon Lake,
Town of Wayland, Steuben County, New York, surrounded by farmland.
4.0 Major Agricultural Development and Farmland Protection Initiatives
Agriculture is a business that contributes nearly $190,000,000 and over 6,000 jobs to the Steuben County economy. Like any business, it has to change with the times if it is to keep growing. New markets, new products, new ways of doing business and new partnerships are ever needed. The Agricultural and Farmland Protection Board can assist the industry in meeting these challenges. Substantial payoffs in tourism, quality of life and the long-term growth of the Steuben County economy will result if it does so. The success of the Finger Lakes wine industry provides a superb illustration of the possibilities. The preceding Goals and Objectives set forth a comprehensive program in this regard. The following represent major initiatives the Agricultural and Farmland Protection Board should establish as its priorities for the next 5+ years.
4.1 Market Development
Initiative
4.2 Risk Management
Initiative
4.3 Agribusiness Expansion Initiative
4.4 Next Generation
Initiative
4.5 Agricultural
Tourism Initiative
4.6 Good Neighbor
Initiative
4.7 Farmland Management
Initiative
4.8 Smart Growth
Initiative
4.9 Freedom to Farm
Initiative
4.10 Forest Management Initiative
4.11 Professional Farm Manager
Development Initiative
4.12 Diversification/Specialization
Initiative
4.13 Quality Assurance Initiative
4.1 Market Development Initiative
It is recommended that Steuben County initiate a coordinated advocacy effort to market more farm products and develop the skills needed within the farm community to do so on a continuing basis. The first step in this program should be to create an Agricultural Marketing Specialist position. This person should lead a coordinated effort by the Steuben County Agricultural and Farmland Protection Board, Cornell Cooperative Extension of Steuben County, the Industrial Development Agency (IDA), Southern Central Tier and the Steuben County Planning Department to implement the recommendations of this Plan. He or she should help to identify new markets for agricultural products and services and be assigned to provide technical assistance on a circuit-riding basis to farmers and agribusinesses in selling to those markets.
The person hired could be employed by any one of the above organizations but should be assigned specific responsibilities to the Industrial Development Agency and Cornell Cooperative Extension as a resource person. The shared responsibilities are essential to highlighting the value of agriculture and forestry to the local economy and further integrating agriculture into the County's economic development program. Funding for this position could come from a variety of sources including the County but, initially, this endeavor should be approached as a demonstration project. It should be possible to secure grant funds from State and/or Federal sources (see Appendix 5.3) to help launch the project. The position should, however, be designed to be at least partially supported by producers and agribusinesses over the long-term on a fee-for service or cooperative basis.
The tasks of this Agricultural Marketing Specialist should include, but not be limited to the following projects:
· Development of new markets, both within and outside the County, for Steuben County's farm products. This should include direct/technical assistance to farmers, agribusinesses and farm organizations (including cooperatives) in selling, promoting and structuring the distribution of these products as well as the development of new lines. Examples include working with producers to develop markets for table stock potatoes sold by variety, marketing of grass-fed beef and the marketing of specialtty wood products. Another could be assisting fruit and vegetable producers in establishing a new Farmers Market along the Keuka Wine Trail in Hammondsport.· Training farmers and agribusinesses in marketing practices, including direct marketing, Internet sales and exporting. There are significant opportunities in each of these areas. Direct marketing is very under-developed in Steuben County despite large number of Wine Trail and Corning Glass visitors and a resident population that includes many upscale buyers with "Ceramic Corridor" managerial positions. Also few farmers are using the Internet to sell product despite many successes in other parts of New York State selling everything from sheepskin gloves to maple popcorn from websites. Still others have been able to take advantage of export opportunities to sell products such as cheese to the large Canadian market next door. Special opportunities abound because New York State can supply more demand for a niche product than found for ordinary products in most states. The skills to tap these markets need developing, however, because much of agriculture has been commodity driven where farmers have essentially been "price-takers." They must be converted to "price-makers," though better marketing, to compete in a world market.
· Identifying opportunities for adding value to existing farm products before they are sold. Forestry products for instance, offer possibilities to craft patio furniture, storage sheds and wooden novelties in the manner of so many Lancaster, Pennsylvania enterprises. On-farm dairy processing of cheeses, yogurts and ice cream also offers opportunities and could complement the Wine Trail. The Rochester market is relatively accessible for selling such products. Finally, there is considerable potential for custom-slaughter freezer trade. Additional work is involved but, where combined with quality assurance and relatively low-key marketing, farmers can deliver added value to customers for higher income and better cash flow. The key is to establish relationships with end-users, vertically integrating the industry wherever possible.
· Disseminating information on market opportunities. A key element in development of new markets is the communication of information on demand, supply and prices. No market is forever and farmers need to continually adapt and respond to developing opportunities. These include, for example, growing demands for dairy/beef crosses at nearby Taylor Packing, as well as meat goats for the ethnic market buyers at Empire Livestock. Publication of market data from livestock auctions is also important. Dairy farmers, in particular, need more information and training regarding its use to make cost-effective culling decisions. There is, too, a demand for technical information and Extension support for growing niche businesses such as nurseries and greenhouses. Some owners report going to other counties for that expertise.
· Promoting sales of existing Steuben County farm products. There is a need to work with surrounding counties in the promotion of Steuben County's major farm products, particularly milk and wine, but also potatoes, vegetables, beef and specialties such as Christmas trees. Not nearly enough of the County's producers are making use of the Pride of New York label, for example, despite heavy demand for "made in New York" products - there are only two local participants. Steuben County farmers also failed to exhibit enough interest for participation in the Sullivan Trail Resource Conservation and Development District's "Harvest Bounty" brochure. The Agricultural Marketing Specialist should be helping to develop the enterprises appropriate for these programs and soliciting participation in them.
Even more important is the promotion of the Finger Lakes label. This region is the second most easily identifiable in the country. Regional branding, therefore, holds the potential to dramatically increase sales of local products. It is important, in this context to link the branding with quality as Dr. Frank's wineries have done by promoting the best wines produced in the region (e.g., Reisling, Pinot Noir, sparkling wines, etc.).
This type of promotion should also be extended to milk by helping to promote New York State cheeses and, specifically, those cheeses produced in Steuben County and the Finger Lakes region. Polly-O is one of the most popular brands of Mozzarella cheese, for example. It is a premier company in its own right and part of Kraft. It is also a very large employer and should be symbolic of Steuben County in the same way Corning Glass is. These types of operations deserve recognition. Promotion of them is a means of selling all of Steuben County's agricultural products. The milk supply continues to grow (despite loss of individual farms) and can only be sustained by increasing demand through these types of efforts. This should be a central focus of the County's Market Development Initiative.
A proposed job description for the Agricultural Marketing Specialist for the Agricultural Marketing Specialist is included as Appendix 5.4 of this Plan.
Implementation Period:
1) Start-up 2001
2) Demonstration period 2002-2005
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
3) Steuben County IDA
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4.2
Risk Management Initiative
Increasingly, the focus of farm legislation is on developing risk management capabilities in the farm community. This is a natural result of consolidation in the industry and the move toward eliminating agricultural price supports. The gradual elimination of such supports has led to widely fluctuating prices of farm commodities. This, in turn, has created the need for mechanisms to control these risks - particularly in the case of small to medium size farms with limited ability to deal with the cash flow problems inherent in such a system. Risk management therefore, also needs to be a priority consideration for the Agricultural and Farmland Protection Board. Indeed, it is far more important in Steuben County where higher risk small farms are the norm than in some other counties where large farms predominate.
The Board cannot, obviously, absorb the risks itself. It can, however, help to create the tools to do so. More importantly, it can help to ensure that farmers have access to these tools. Among these are futures trading, forward pricing and crop insurance.
· Dairy futures trading, promoted as part of a special Federal program available to Steuben County, provides an opportunity to assure future revenues. Interest has been very limited (particularly while prices have languished at low levels) and results have been mixed. Nevertheless, it is clear that farmers who locked in prices in early 1999, for example, gained significant time to adjust to much lower prices later that year. Moreover, at least one experienced farm trader in nearby Wyoming County was able to make money when prices dropped by having sold short earlier. Other farmers have used forward pricing to stabilize prices of purchased feed ingredients. These tools will become increasingly important, as the means to even out cash flows and stabilize income and expenses going forward, allowing the opportunity to adjust to changing circumstances through good management. Intensive training is needed to equip Steuben farmers with a full understanding of the benefits and logistics of these programs.
· Crop insurance is another vastly underutilized risk management tool. It costs very little ($50/crop typically) and provides significant protection against the risks of crop loss due to natural disasters. The program is not popular because crops must be registered in multiple jurisdictions where farms cross political boundaries. Additionally, USDA has repeatedly provided disaster payments to all farms after having indicated that only those with crop insurance would be compensated, thereby undermining the program. Nonetheless, it guarantees compensation on a timely basis to prudent managers. There can be no such assurance of aid dependent on political decisions. Crop insurance is, therefore, a useful mechanism in protecting small farms from the hazards of drought and other natural conditions that can raise havoc with cropping plans and cash flows. The Board needs to include this tool in its risk management education initiative.
· The most effective tool for managing risk, however, lies in farmers banding together to negotiate pricing in the form of long-term contracts. This is the role of farm cooperatives. The best illustrations are often found with smaller groups. The Schoharie Farm Cooperative near Albany, for example, has successfully locked in significant over-order milk premiums for a number of years by negotiating with different processors. Local cooperatives serving Steuben County farmers need to review and strengthen their bargaining efforts on behalf of their memberships. Opportunities exist for cooperative work by farmers marketing livestock, field crops and vegetables, particularly potatoes, so that farmers can take advantage of collective bargaining. New cooperatives are needed in Steuben County and existing cooperatives could gain from assistance in developing their negotiating skills and other technical help.
· Steuben County also has, in the example of the Keuka Wine Trail, an excellent example of the type of cooperative needed to further agricultural development. It is a relatively small but highly effective organization with limited overhead that is able to promote the wine industry as a whole within the area despite the competition among members. Another example is the informal buying group several larger dairy farmers in Schuyler have created to bid some of their farm supply purchases.
· There are additional opportunities of both a formal and informal nature to form selling or purchasing cooperatives in the County. Such organizations are needed to pursue better pricing for dairy products, potatoes and vegetables, and to secure less costly goods and services through joint purchasing arrangements. Dairy processors such as Polly-O prefer to deal with small to mid-sized groups of farmers. Good examples of such cooperatives may be found in the County (the Addison and Kohocton Dairy Cooperatives). These groups can be loosely knit in some cases while, in others, more structured legal entities will be required but, in all cases, these cooperatives need to be relatively small and narrowly focused to be successful.
· Technical assistance in forming and administering such cooperatives will be required in most instances. Help is available from the U.S.D.A. Rural Development Agency insofar as start-up, but on-going activities will demand the aid of the Agricultural Marketing Specialist or some other entity free to get involved in price negotiations and other day to day business activity. Once organized, such cooperatives will, in fact, do well to employ their own personnel on a part-time or consulting basis for this purpose. The Board should initiate discussions with existing farm cooperatives, dairy farmers and potato and vegetable growers with views toward making USDA and other resources available for cooperative development.
Implementation Period:
1) Educational work 2001 (Continuing)
2) Organization 2002
3) Start-up and operation 2004
Responsible Parties:
1) Agricultural Marketing Specialist
2) Agricultural and Farmland Protection Board
3) U.S.D.A. Rural Development Agency
4) Cornell Cooperative Extension of Steuben County
5) Farm Services Agency
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4.3 Agribusiness Expansion Initiative
Growing the agricultural economy demands a core of support businesses. Farmers need competitive outlets for products as well as the purchase of inputs. There are also opportunities for selected agribusinesses now largely missing in the County or needed to fill particular demands. Additional slaughter and meat processing capacity is needed, for instance. A regional dried-milk plant for use as a supply balancing facility would enable more local purchases of raw milk, avoiding the supply sharing problem inherent in Federal orders. There are a number of small sawmill operations that could pursue added value secondary processing opportunities by expanding into craft manufacturing. There are two cheese plants and several feed mills that could have interest in upgrading or expanding. Finally, there are wineries and dairies with opportunities to expand on-farm processing.
The importance of agribusiness enterprises to the County economy was reviewed in Section 2.0. They enjoy extraordinarily high economic multipliers, employ several thousand workers and, in the case of dairy processing, represent hundreds of millions of dollars of sales for the County. Encouraging the continued development of these agribusinesses demands a combination of financial incentives with other recruitment efforts.
· Agribusiness recruitment should be a priority of the Agricultural and Farmland Protection Board. This might include advertisements targeted at needed industry sectors, requests to universities to assign student interns to explore new agricultural processing ideas or holding an "Agribusiness Fair" for interested processors where they would be introduced to the supply, the community and economic development assistance they could expect from Steuben County. The County could also emulate Ontario County by creating an agricultural industrial park to which processors would be recruited. It should be complemented with the establishment of an enterprise zone allowing the avoidance of most taxes during the initial years of a plant's operation.
· It is recommended that the County Industrial Development Agency consider a special tax-abatement program to promote investment in new or expanded agricultural enterprises. This is necessary because many businesses, particularly those next door to Pennsylvania, are tempted to relocate out of New York State due to high taxes. Additionally, many farm-related enterprises (e.g. wineries) are excluded from agricultural tax benefits in New York State and are also outside the mainstream of manufacturing activity. A targeted tax-incentive program, combined with programs to protect farmland and recapitalize agricultural enterprises, will allow the County to offer unique packages of benefits to such enterprises, making it the place to be for those businesses - an essential ingredient of effective marketing. Individually negotiated abatements cannot substitute because they cannot be promoted. The IDA should consider a targeted tax abatement program with an abatement schedule as follows:
Proposed Agricultural Industry Tax Abatement Program
Year
% Taxes Abated
% Taxed under PILOT*
1
100%
0%
2
100%
0%
3
100%
0%
4
100%
0%
5
100%
0%
6
50%
50%
7
45%
55%
8
40%
60%
9
35%
65%
10
30%
70%
11
25%
75%
12
20%
80%
13
15%
85%
14
10%
90%
15
5%
95%
16
0%
100%
* PILOT = Payments In Lieu of Taxes
This schedule is designed to provide maximum benefits during the period of time when an agribusiness or winery is paying off equipment and start-up loans and, therefore, will be of direct aid in capitalizing these businesses. It is aggressive but not unprecedented. Ontario and Sullivan Counties, for example, have similar programs that have already been used by agricultural processors and feed and farm machinery dealers to expand their operations, increasing their commitment to those respective Counties. An aggressive program is, moreover, required to get attention and market the County as a location with a valuable competitive advantage. Yates County, too, has a similar program for industrial value-added businesses, much more aggressive than Steuben's and open to wineries as value-added food processors.· Steuben County should also work with Southern Tier Central to encourage use of its Entrepreneurial Revolving Loan Fund by County agribusiness and establish another revolving loan program specific to agriculture. The fund should be targeted specifically to agricultural and forestry processing projects (particularly small wood craft operations), financing innovative manure management systems and similar ventures. It should also be promoted through the use of descriptive brochures. Candidate projects will typically need to be identified for the initial round of funding but could include a mini-dairy processing facility or feed mill expansion. The Appalachia Regional Commission, Economic Development Administration, HUD Community Development Block Grant Program should all be considered as a source of funding for such a revolving loan program.
· A "Funding for Farm and Agribusiness Projects," brochure should be developed to identify various funding sources available to assist agribusinesses and farms. This would differ from existing handouts in that it would be more focused on agriculture and also identify additional programs not available to non-farm entities. It should include programs such as those offered by Empire State Development Agency, the Department of Agriculture and Markets and the Rural Opportunities Enterprise Center, Inc.. The Agricultural and Farmland Protection Board should also meet with local financial institutions to explore ways to enhance this fund with leveraged below-market rate or market rate financing that would help to meet their Community Reinvestment Act obligations. Appendix 5.3 hereof provides a starting point for a funding brochure.
Implementation Period: 2002
Responsible Parties:
1) Steuben County IDA
2) Southern Tier Central
3) Agricultural Marketing Specialist
4) Planning Department
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4.4 Next Generation Initiative
Perhaps the most critical challenge in maintaining a vibrant agricultural economy is producing a next generation of farmers and farm workers, to take over the operation of the industry and maintain the critical mass of agricultural activity needed to attract and retain support businesses. There are several measures that can be taken to achieve this initiative including the following:
· Steuben County has a great deal of vacant farmland that could be put back into production. A farm solicitation effort is warranted to better use the County's idle farmland. Oneida County, New York has developed an excellent program of this nature. It is relies upon a professional video entitled "The Mohawk Valley - The Agricultural Edge." Lewis County also has a good program. Oneida's program is managed by their Agricultural Economic Development Specialist and a special sub-committee of their Agricultural and Farmland Protection Board.
A similar approach is warranted in Steuben and it is appropriate to target the Amish and Mennonite communities who have already been moving into both Steuben and Yates Counties. These communities have helped to maintain a strong agricultural base and have demonstrated the benefits of diversification by establishing small sawmills and assorted other niche enterprises that complement farm endeavors. Most importantly, they are helping to maintain a critical mass of farmers and agribusinesses.
· Preparing future farmers and farm workers with the motivation and skills needed to prosper in agriculture. This includes agricultural education in schools. There should be increased efforts and agricultural vocational training into BOCES and local high schools. The "Feed the Green Machine" video is a place to start. From this base, a program of seminars and courses should be developed, particularly in the areas of agricultural diversification and specialization with emphasis on the high-tech nature of agriculture today and the many applications of science that it involves. The "Agri-Core" curriculum programs used in Cortland, Ontario and Cayuga Counties are also excellent models. These programs need to be heavily promoted to build knowledge of current farm practices and an appreciation for agricultural economic opportunities in the County.
The 4-H program should be used to complement this effort by reaching out to the non-farm community and keying on the science of agriculture. County 4-H staff should review existing agricultural and natural resource programs and identify opportunities to build core business, entrepreneurial and marketing skills in area youth. Rural and farm youth need to be encouraged to explore higher education in agriculture and natural resources, including course work in business, marketing and entrepreneurial skills development. A concerted effort to work with 4-H program leaders and area guidance counselors in this regard is a necessity.
· Internet user capabilities need developing among younger generation farmers to further trade, create feeding programs, monitor pricing and keep abreast of the latest technology. Progressive farmers are using this tool to a great degree but many have resisted it. The County Agricultural and Farmland Protection Board needs to promote its use in every way possible to keep Steuben farmers abreast of the available technology. Seminars, demonstrations and hands-on training are all needed. Those farmers who make the effort to become "computer literate" will offer the best potential to grow and attract labor as well as investors.
· Labor management skills among farm owners also need improving. Farmers have found it extraordinarily difficult to attract and retain farm workers with the economy at full employment. The work is sometimes unappealing, the hours can be long and benefits have typically not been available. Most farmers have had little experience or training as labor managers. As their farms have grown in size, dealing with farm workers has, therefore been a challenge. Much training is needed, with regard to managing labor, devising attractive benefit packages, offering better working conditions and identifying alternative sources. Where such sources are used (e.g., immigrant labor), several other issues must also be addressed, including language skills, general education and housing. The cultural divide can be troublesome if farmers are not properly equipped to meet the needs of their workers. Those Steuben farmers who have taken the time to learn labor management skills and have invested in their workforce have had little difficulty keeping good help. The Board should use the Pro-Dairy program and other resources to help inculcate this attitude among all farmers.
· Transfer of farms from one generation to the next involves a combination of estate and business planning for which farmers often require professional technical assistance. The Agricultural and Farmland Protection Board needs to take a lead role, together with Cornell Cooperative Extension, in making this assistance available through seminars; other training programs and the formal establishment of the Extension Office as a clearinghouse for resources on farm transfer planning. The Board should also explore the potential for establishing a pilot program in connection with Farm Credit or other lenders to purchase and rent farms on a lease-purchase basis to young farmers, individually or in cooperative fashion. This would make an excellent demonstration grant request and could help lenders address Community Reinvestment Act obligations while developing future agricultural lending business.
Implementation Period: 2002 (Continuing)
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension
3) Agricultural Marketing Specialist
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4.5 Agricultural Tourism Initiative
A Steuben County agricultural and natural resources tourism industry needs to be developed around the Corning Glass and Keuka Lake Wine Trail attractions. Both Corning Glass and the Finger Lakes Region offer tremendous name recognition, but more efforts need to be made to build upon interest in the Ceramic Corridor and wine industries.
· Professional marketing is needed to package these attractions with local bed & breakfast offerings, vineyard/winery tours, visits to farm markets, farm tours and the like. The potential for making tourist attractions out of farm enterprises is considerable. An excellent illustration of the type of appeal that should be made is the brochure developed by the Sullivan Trail RC&D agency for Ontario, Seneca and Yates Counties entitled "The Beat of the Finger Lakes Heartland." Steuben was offered the opportunity to participate but insufficient farmer interest led to it being left out. This suggests the County's farmers are not aware of the tourism assets they possess and more effort needs to be put into assisting farmers in developing this potential.
One of the most important assets in this regard is the fact most of the wineries and other farms are family operations. Family history is a great marketing device of much interest to visitors who like to take home wine, cheese and fruits they can tell others they purchased at a little family-owned farm or vineyard in the Fingers Lake. Some of the wineries have begun to take advantage of this but others have not and need to become more receptive to bus tours and other organized group visitation. Professional marketers, therefore, are required to sell the tours at both ends - to visitors and to the businesses who could benefit from their visits. Visitors want to not only buy a bottle of wine but also to see how it's made and know who's making it. They want to know the family and associate with those individuals.
· The County also very much needs more activities for youth to complement the adult attractions and create a family tourism image for the area. These might include corn mazes, equine activities, pond or fee-fishing and farm visits, for example. Other farm-related tourism could include tours of a modern high-tech farm. The County tourism brochure now includes 2 pages of farm market information, including a tree farm, organic farm, blueberry farm and similar features but nothing truly recreational or symbolic of present-day agriculture. There is great interest in how working dairy farms, for example, operate today.
· A demonstration project funded with help from the County and State and/or Federal grant sources to develop and market bus tours centered around a combination of agricultural, wine trail and Corning attractions is needed. The project should be assumed by the Steuben County Conference and Visitors Bureau over the long-term, but the Agricultural and Farmland Protection Board should encourage the development of additional agricultural tourism ventures such as new fruit and vegetable stands, corn mazes, fishing ponds, farm tours, u-pick operations and the like through a combination of education (e.g., a seminar on how to set up a corn maze) and financial incentives. Such incentives might, for example, include use of Southern Tier's Micro Enterprise Entrepreneurial Revolving Loan Fund to develop a small on-farm cheese processing facility or small grants could be awarded to make other improvements or to do publicity.
The keys to a successful agricultural tourism program are two-fold; 1) having enough activities to attract interest and package with other activities, and 2) establishing a price that connects with each activity to generate income. The first of these challenges is addressed above but, as a measure of the County's level of activity, it is worth comparing it to St. Lawrence County where over three dozen farm tours are advertised in addition to the farmers' markets. Steuben County's brochure promotes just 11 agricultural tourism sites altogether and most of these are farm stands. Clearly, more development work is needed. There are attractions to promote (e.g., existing farm bed and breakfast operations, log cabin rentals, pumpkin patches and at lease one corn maze) but most do not make into the tourism brochure.
· Some farms with tourism potential have chosen not to be included in brochures because they do not see a profit in it. This is why it is so important to have something to sell to agricultural tourism sites. That something can include an admittance, merchandise or schooling, but if a price is not charged then the tourism is just apt to be a bother as an opportunity for the farmer. Many farmers are simply unaware of the level of interest in their activities or the fact that tourists will pay for it. They will, however, and there are good examples locally including "Herb Camps" and "Draft Horse Schools." Similar opportunities exist with recreational leases for hunting and fishing, petting zoos and other activities. Tourists are also likely to be interested in seeing a 22 foot wide potato digger operate, how a modern milking parlor works or a beef farm. These all present tourist opportunities that should be explored and packaged with other attractions. However, rural landowners are unsure of how to manage liability concerns with these types of enterprises and need additional education in this regard if fee hunting and finishing businesses are to develop.
· Packaging also involves linking the attraction under some common theme. This could be accomplished in the context of the Wine Trail or the Finger Lakes Culinary Bounty program using attractive brochures and trail signage. A link to Corning Glass is also appropriate, of course, and one concept might be to tie various vegetable producers and farm stands together in a "Corning Cornucopia Trail." Such a trail could also take advantage of the Steuben County Fair's status as the oldest in the nation, if some regular activities can be developed at the site.
· The Agricultural and Farmland Protection Board should provide the initial leadership in developing an ag tourism program by assembling a task force of representatives from the farm community, Sullivan Trail RC&D, Corning tour promoters, the Convention and Visitors Bureau, Wine Trail and local lodging places to identify the best opportunities and the measures needed to stimulate interest by providers. From this a conceptual plan for promotion purposes can be developed. Providers can then be solicited and an advertising campaign launched. It need not be expensive. Bucks County, Pennsylvania, for example, does a very effective job with a plain paper booklet advertising several dozen sites and combines this with a website where such attractions are packaged with bed and breakfast accommodations. This is the type of program Steuben County needs.
Implementation Period: 2003
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Steuben County Conference & Visitor Bureau
3) Agricultural Marketing Specialist
4) Cornell Cooperative Extension
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A major concern of virtually every farmer in Steuben County is maintaining a good relationship with farm neighbors. Farmers are worried about complaints regarding odors, noise, slow-moving traffic and the use of pesticides. Some have opted to buy as much land as possible to buffer their activities, others have informal arrangements to notify neighbors when they plan to spread manure and still others invite their neighbors to barbecue events or provide free vegetables as good will offerings.
· More important than anything is consumer education. As one Steuben County farmer succinctly stated it, "people who don't know, don't care." The non-farm resident survey discussed earlier revealed that, even in rural Steuben County, there are large numbers of residents who have not visited a farm in over 10 years (or ever). These individuals need exposure to the agriculture industry, the practices it involves, the science it requires and the practical difficulties of farming, if they are to be expected to sympathize with the attributes of the farm next door. This requires more events like the Jasper Ag Day, the Addison School's "Grown in Steuben Week" and Tioga County, Pennsylvania's "Farm-City Day."
· An annual publication similar to Saratoga County's "Saratoga Farms" resource guide to farms in the County should be developed to map Steuben farms and promote agriculture in general. This might simply be a Farm-City Day newspaper insert or it could be done in the manner of the "Business Journal" publication. The Agricultural and Farmland Protection Board, could also develop such a publication on an annual basis as the vehicle for agricultural promotion, given that so much of the County's economy revolves around agriculture. It should include not only the map but also economic data on agribusiness and farming, excerpts from this plan, descriptions of all significant farms in the County by category, advertising and promotional material. The goal should be to use the piece for education of both the farm and non-farm community and to instill pride among members of the industry.
· Another very effective tool for good neighbor relations is New York State's Agricultural District program. Location in an Agricultural District provides farmers with the protection of the State's right-to-farm legislation. Municipalities cannot impose standards that unreasonably restrict farm activities. The same provisions also offer Department of Agriculture and Markets assistance in fighting nuisance suits directed at what are ordinary and sound agricultural practices. Most importantly, sales of property within Agricultural Districts or near farms located in such Districts are subject to a notice requirement. Purchasers receive an Agricultural Data Statement telling them they are in an agricultural district where farm practices creating odors and other impacts are routinely conducted. It also establishes a legal foundation for farming and helps to eliminate causes of action by neighbors against farmers. This feature of the legislation discourages litigation and encourages resolution of disputes by other means that respect the interests of both parties.
· Steuben County's Agricultural District program, is, therefore, extremely important and participation by every farmer is essential. Public education regarding the value of the Districts must be a continuing process. Public education regarding the value of the Districts must be a continuing process. The Agricultural and Farmland Protection Board should increase their efforts to solicit farmers to join existing Agricultural Districts as they come up for renewal. All landowners within a district undergoing review should receive a direct mailing that includes the renewal form and a fact sheet concerning Agricultural Districts. Existing districts should be consolidated where feasible; there are now 23, but a taget of about 8 should be set, resulting in one renewal per year. This will allow an efficient annual process with time to prepare maps for public distribution, conduct tours and place paid advertisements to create more interest in the program. All these tools should be employed and the Agriculture and Farmland Protection Board should also develop and distribute Fact Sheets regarding the program.
· The County Legislature is also now considering a Right-to-Farm Law and similar laws should be encouraged in Steuben County's towns. The proposed County law and a suggested model for town use are included as Appendix 5.5 of this Plan. Representatives of the Agricultural and Farmland Protection Board should meet with local officials of these towns on an individual basis over the next three years to explain the benefits of agriculture and propose the adoption of this model or a close facsimile. It is town government that typically receives agricultural complaints and takes responsibility for mediating these conflicts. Towns also control building and development and, therefore, are the logical entities to administer Right to Farm laws, although the County version is a good failsafe measure.
· Right to Farm laws, it should be noted, are intended to complement the New York State Agricultural District Law and provide a means for resolving farm-neighbor conflicts. They do so by protecting the rights of farmers using sound agricultural practices to continue those practices and to grow and expand within the community. They establish a policy that recognizes agriculture as a priority land use and puts the burden of proof that a farm practice constitutes a nuisance squarely upon those who would oppose such practices. The model law establishes specific criteria that broadly define the nature of a sound agricultural practice and make it extraordinarily difficult for such practices to be declared nuisances. The real strength of such laws, however, is that they create a mechanism to discuss problems, educate the parties and resolve conflicts on a local level. They also serve to establish a statement of town policy which, it is hoped, will carry over to other aspects of local government.
Implementation Period: 2001-2004
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
3) Steuben County Farm Bureau
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4.7 Farmland Management Initiative
Maintaining the supply of farmland in the County demands a management effort by the County that addresses the threat of development of the best parcels while also recognizing the needs of farmers to redeem their equity in the land and the high holding costs of farmland. Accordingly, the following measures are recommended:
· The County should, together with the Finger Lakes Land Trust, consider establishing a very limited program to acquire at least temporary conservation easements on the most valuable farmland in the County. The program should be strictly voluntary and limited to high-value farmlands threatened by development (e.g. Keuka Lake tracts suited for vineyards). Conservation easements effectively separate commercial and residential development rights from farming rights. The acquisition of the former is, therefore, often referred to as "purchase of development rights" or "PDR" although a more practical approach for Steuben County is probably a shorter-term program where the rights are effectively leased for a specified period ("LDR"). The values of such programs are two-fold. They preserve farmland with all the attendant benefits of protecting open space, critical mass and future opportunities to farm. They also, and much more importantly, allow a farmer to redeem equity in farmland.
The program will require funding for easement purchases or leases, administrative assistance and an organization to receive and hold the easements or development rights. The Town of Periton, Monroe County, program, which uses tax abatements as the payment mechanism for a LDR program, can serve as an excellent model for Steuben County. Appendix 5.6 includes a description of this program. The primary areas for consideration should be those farms, depicted on the map found in Section 2.2 of this Plan, that lie within a New York State Certified Agricultural District and are located within those Soil Groups rated as "most productive" in terms of Agricultural Suitability (see Table 2.1). Areas already protected by designation as regulatory floodway should not be included and emphasis should be on areas that actually bear a risk of conversion to other non-farm uses.
The receiving organization for the easements could be the County itself through the Agricultural and Farmland Protection Board, the Finger Lakes Land Trust or even individual municipalities. The Land Trust might well also play an administrative role. The American Farmland Trust (AFT) could too, be contracted to provide technical assistance in administering the program. AFT has assisted with the preparation of this Plan and is, therefore, familiar with the County. Also, regardless of who is chosen to receive easements or administer the program, AFT is a reservoir of valuable information and models of easement or LDR/PDR programs.
Funding for the program could come from many sources including the New York State Environmental Bond Act, the Federal Farms for the Future program, the New York State Agricultural and Farmland Protection Program, local and national land trusts and/or private individuals. A landowner might, for example, donate a portion of the easement value for a tax write-off and to provide the match for New York State or other funding. This could work particularly well with wealthier owners of rented farmlands, of which there are an increasing number of buyers for recreational purposes in Steuben County. The Land Trust, if involved in the program, might well also be able to raise private donations for matches. There are, too, other programs such as the Federal Conservation Reserve Program (CRP) and Wetlands Reserve Program (WRP) that can be piggybacked onto the local program as a way of leveraging additional monies. Steuben County, in fact, already has more CRP acreage than any other in the State. Finally, if the development rights were leased, they could be purchased with the tax abatements rather than, or in combination with, cash.
The Agriculture and Farmland Protection Board will need to develop guidelines for dealing with the sensitive issues of how farms are chosen for the program and the management of the conservation easements. These easements should set aside areas for family residential development but limit other commercial and residential development of the farmland itself through negative covenants that confine or prohibit such activity. It will be important to avoid discriminating against small farmers in the selection process. The Agricultural and Farmland Protection Board can help to ensure this. The Board will also need to do a fair amount of preliminary organization before it can solicit easements, but the program can come together quickly with the right help and the Board should establish high goals and publicize them as a way of generating interest in the program, both from farmers and potential contributors.
A critical element in any successful LDR/PDR program is the degree to which it will allow participating farmers to recover and reinvest equity or take it out if the intent is to retire and transfer the farm to a younger generation. If sufficient equity cannot be redeemed, then the downside risk of giving up future returns associated with escalating land values will be too great. There must be a significant difference in agricultural and development value for the program to work and this is lacking in much of the County. If the differential is expanding rapidly, however, the farmer may not be wise to sacrifice potential future for present gains. It is difficult to know where one stands on the spectrum in Steuben County because various parts of the County are affected in different ways by growth outward from the Corning and Rochester areas. These areas are in a state of transition where land values could be subject to wide fluctuation over the next 10 to 30 years.
Given this circumstance, most farmers would not be well-served by a permanent conservation easement program that would eliminate opportunities for a younger generation to also redeem their sweat equity in the land. This is why a Leased Development Rights (LDR) program similar to the one employed in Monroe County and in Vermont would work best for the County. It should be based on a one-generation type easement agreement (say 20-25 years) where some portion of the easement might be purchased with tax relief that is also inappropriate to give away forever. A LDR program would provide an opportunity to recover equity in the short-term, preserve future equity development options for the younger generation and cost much less to implement. Finally, it puts the responsibility for farmland preservation in the only place it ultimately can be - the hands of the farmer who must, using the economic development approaches outlined in this plan or others, be able to generate a profit sufficient to amortize the value of his farm investment. It is a good fit for Steuben County.
· The Agriculture and Farmland Protection Board should promote further use of the CRP and WRP programs within the County. These programs are good financial tools for reducing the holding costs associated with farmland. They are also good examples of what is happening in places like Australia, and potentially in the U.S., where farmers are effectively paid for maintaining open space. Those farmers with debts to the Farm Services Agency can also use them as a vehicle for trading open space for debt reduction.
· Incentives for making productive use of other idle farmland are needed. Where land doesn't qualify for the CRP or WRP programs, returning it to productive use needs to be a priority from both economic and farmland preservation perspectives. The incentives could be worked into an LDR program, for example, by giving a priority to such circumstances. Other incentives might include short-term tax abatements to encourage recultivation and later placement under the regular Agricultural Assessment program. Technical and marketing assistance could also be made available to farmers interested in taking over abandoned fields and putting them into new agricultural uses.
· The Agricultural and Farmland Protection Board needs to make a concerted effort to equip farmers with the ability to reduce their property tax burdens. Despite the Agricultural Assessment and School Tax Refund programs, some Steuben County farmers interviewed in preparation of this Plan have seen their taxes double over the last 10-12 years.
First, there is a need, within the farm community, for increased awareness of existing tax benefits available to farmers. Surveys conducted as part of this planning process indicated a lack of knowledge regarding fairly generous tax benefits available to New York State farmers and vineyard owners. Presentations are needed on a regular basis to farmers, assessors and the farm community as a whole. A farmers tax guide also needs to be developed along this line with annual seminars and release of reminder notices. A sample guide to farm taxes is attached as Appendix 5.1.
Secondly, the Agricultural and Farmland Protection Plan needs to become a clearinghouse for technical information on farm taxes. It specifically needs to educate farm tax preparers and should consider an annual seminar or even a certification program just for those individuals.
Finally, the Board needs to be active, along with Farm Bureau, in speaking to tax issues. The School Tax Refund, for example, shouldn't be limited to small acreage farms (250 acres) when the trend is toward farm consolidation and some the County's best farmers, most worth encouraging in their endeavors, are well above that acreage.
· A continuing education program is needed regarding leasing of farmland to companies engaged in oil and gas exploration. New technology has made it possible to drill deeper and economically remove oil and gas that wasn't feasible to mine just a few years ago. Exploration companies are now engaged in leasing Steuben County properties for this purpose. It is an opportunity to capture more economic rent for farmland. There are, however, issues surrounding such leases on which farmers and others may need technical assistance and some training. Understanding the importance of various lease provisions is critical to maximizing revenue over both the short and long-term. Therefore, a program of continuing technical assistance aimed at both farmers and other landowners is essential. It should also include the development and distribution of model lease provisions and educational materials.
Implementation Period:
1) LDR 2004
2) Other activities 2001 (Continuing)
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension
3) Farm Bureau
4) Planning Department
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Purchase of development rights will often
be impractical in Steuben County due to limited differentials
between agricultural and development values and lack of public
knowledge. Other measures are appropriate in those circumstances,
including "Smart Growth" land use regulations. Such
regulations typically encompass mechanisms such as "conservation
subdivisions" that concentrate growth in selected areas in
return for preservation of open space, including valuable farmland.
The selected growth areas are typically those near existing centers
where infrastructure exists to accommodate new development. Both
the County Planning Department and the Three Rivers Development
Corporation are promoting "Smart Growth" and the Agricultural
and Farmland Protection Board should do the same.
As a general matter, farming can be either greatly helped or greatly
hurt by land use regulations, depending on how well agricultural
interests are incorporated in the land use planning which undergirds
those regulations. Recommendations in this regard are outlined
below:
· Where zoning laws exist within the County, the zoning laws should include agricultural zoning districts generally matching the New York State Certified Agricultural Districts within those borders. The Agricultural Farmland Protection Board should, with the Planning Department, develop a model set of district regulations for this purpose. The regulations should permit a wide range of uses in such districts but only at densities compatible with farm activities so that adequate buffers can be provided and reduce potential nuisances suits. Permitted uses should also be oriented toward compatible activities like campgrounds, farm resorts, light manufacturing and other activities where the potential for conflict with agriculture is minimized. Residential development of any intensive nature should be discouraged.
The districts should discourage activities that will require the extension of sewer and water lines into active farm areas but encourage "conservation" or "farm-friendly" subdivisions that allow the area to develop in a reasonable and compatible manner and permit farmers to secure extra income from sale of equity in land not essential to their farm operations. Such subdivision regulations typically require clustering of housing and development along the edges of properties or wooded areas to avoid using up valuable farm fields. Some sample language along this line might be as follows:
"Proposals for subdivision of parcels including active farm or crop land within New York State Agricultural Districts shall include delineation of proposed building sites on each lot, which sites shall be located outside of or along the edges of the active farm and crop lands. Subdivisions of five (5) lots or more shall ordinarily be required to employ conservation subdivision or clustering techniques which provide for presentation of active farm and crop land without reducing overall density of development."
Some caution must be exercised, however, in planning developments of this nature to avoid creating conflicts between homeowners and farmers engaged in normal agricultural practices such as manure spreading, weed spraying and cattle pasturing. Density of development and buffering are both factors that should be considered in this regard.
· Local officials and, particularly, planning board members, require continuous education on planning issues in general and agricultural law. Many planning board members often come from non-farm backgrounds and are unaware of farm issues and the law as it pertains to agriculture. They also need instruction on "Smart Growth" and "Growing Greener" planning options that concentrate growth near existing centers and infrastructure. Schoharie County, together with Shepstone Management Company, has developed an Agricultural Planning Guide to assist in guiding planning officials. A copy is attached as Appendix 5.7. Planning schools, seminars and resource materials for local officials should be prepared and/or conducted to help them understand how the Agricultural Districts Law works and the considerations they should give to development adjacent to farms.
· A concerted effort is needed to get members of the agricultural community involved in local government and planning. As an example, Section 271.11 of the New York State Town Law specifically provides towns with the authority to appoint one or more agricultural members who earn at least $10,000 per year in gross income from agricultural pursuits. Such members can be in addition to the other members the Law specifies each Board must have. All major agricultural towns should take advantage of this provision to designate additional farm members. Such members are more effective in the long-term than simple appointments of farmers to regular planning board positions because there is no guarantee with the latter that farmers will stay on the boards in the case of reappointments over the years. Getting towns to make such appointments will demand not only some initial persuasion but also continued follow-up and technical assistance.
Implementation Period: 2002-2004
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
3) Planning Department
4) Steuben County Farm Bureau
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4.9 Freedom to Farm Initiative
There has been increasing emphasis from the Federal level in letting private markets direct the future of agriculture. One of the most recent Farm bills, in fact, used the "Freedom to Farm" phrase to describe this policy. While that legislation has resulted in some of the wide fluctuations that have been detrimental to the industry, there can be no doubt that Federal policy will continue in this general direction. Steuben County, like others will have to adapt. However, it should use this opportunity to press for further "Freedom to Farm." This includes the following:
· Encouraging Federal officials to relax provisions of the Food Quality Protection Act as they impact on the availability of pesticides used on small vegetable and fruit crops grown in the County. Many such crops produce relatively small demands for pesticides and the incentives to develop new pesticides simply do not justify fast-tract approvals. Therefore, taking them out of the picture too early can be very detrimental to farmers growing those crops. Programs that do offer incentives for development of alternative treatments for small crops simultaneously need to be supported.
· New York State Department of Agriculture and Markets and Federal Order rules governing the operation of on-farm and other small-scale milk processing facilities also need to be streamlined. The present rules have caused some on-farm processors to give up milk bottling because they require excess milk to be sold to a cooperative. Regional cheese processors suffer similar problems from Federal Order requirements to give up 20% of their supply to fluid milk processors during certain periods when the supply is low. Lifting of these requirements would allow a true private market to develop where farmers would get paid higher prices during those periods and adjust production accordingly in response to the incentive, thereby eliminating the problem and the need for any regulation.
· Farmers also need relief from overly complex rules on wide load equipment transports in New York State and weight restrictions. The former are also more strict than adjoining Pennsylvania and equipment dealers find it difficult to move across the borders. Farmers with wide equipment and multiple farms also confront difficulties. Weight restrictions intended for stone trucks have made it very difficult and costly to move product to and from a Bath feed mill. Each of these situations demands a pro-active response by the Board and Farm Bureau to amend the rules and find alternative solutions.
· Export restrictions need to be eliminated. Potato farmers, for example, find that access to Canadian markets is closed off until that country's crop is sold. Other industries also find that it is much easier to import than export. All trade barriers need to be removed if truly free trade is to take place. Farm Bureau and the Agricultural and Farmland Protection Board need to continually lobby for this.
· Industrial hemp is an excellent product for Steuben County and is being grown in Canada in greater amounts every year but Federal regulations effectively prohibit the raising of this multi-use crop and need to be relaxed. Industrial hemp is strictly controlled because of its genetic similarity to marijuana, but it is a much different product and several states are experimenting with pilot programs to allow cultivation under the Federal rules. New York State is, unfortunately, not one of them. Hemp has a multitude of uses for cloth, paper, oils, food and medicinal purposes. It also grows well in most environments. The Agricultural and Farmland Protection Board and Farm Bureau should press New York State to develop a pilot program.
· Time periods for complying with Federal regulations regarding Concentrated Animal Feeding Operations (CAFO's) need extending and additional funding is required to design and install the necessary farm improvements. The State would also benefit by participating in the Chesapeake Bay Program to open up new sources of funding. More equitable distribution of funds from USDA's Environmental Quality Incentives Program (EQIP) is essential. Funds should be made available to farmers, not just those with farms located in priority watersheds. EQIP requires greater Federal funding and priorities for the Northeast should include erosion control, nutrient management, and rotational grazing. Planning assistance through Cornell Cooperative Extension and the Soil and Water Conservation Districts needs strengthening by allocation of additional resources to this task.
· Consolidation and professionalism of governmental services such as real property tax assessment are needed. Some towns still operate with Boards of Assessors and this typically results in limited knowledge of agricultural assessment rules and much inconsistency from town to town. Tompkins County, like Pennsylvania next door, uses trained county-wide assessors, but even in the absence of this cost saving move, much more professionalism can be introduced through training in matters such as agricultural issues and by encouraging towns to join together in using common assessors.
· As an alternative to increased Federal involvement, the Northeast Dairy Compact offers a tool for farmers to join together in bargaining for higher prices. Not all farmers are fans of the Compact because it does distort the private market but, on the whole, most of the County's farmers would probably benefit from New York State's inclusion because it would provide modest additional premiums for local producers. It should be supported.
· So as to increase coordination among Federal and State agencies serving the farm community, the Agricultural and Farmland Protection Board should sponsor an Annual Agribusiness Forum. This should be an event where all the agencies can compare program information and requirements. It can be used as a vehicle to share this information with farmers, lenders, agribusiness owners and others. Ideally half a day would be devoted to each purpose.
Overall, the government role in revitalizing agriculture should be restrained to education, research, promoting some financial and tax incentives and start-up assistance with new enterprises. The private sector has to carry the major part of the burden. Indeed, government's most import role may be to stay out of the way, once things are going.
Implementation Period: 2002 (Continuing)
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
3) Steuben County Farm Bureau
4) Steuben County Soil & Water Conservation District
5) New York State Department of Environmental Conservation
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4.10 Forest Management Initiative
Forestry resources are not especially well managed but the industry offers significant additional profit potential for farms and is extremely important to the County as a whole. Needs that the Agricultural and Farmland Protection Board can help address include the following:
· Secondary processors of wood products, particularly the smaller enterprises, need to be encouraged with financial incentives. These include woodcraft industries, cabinet-makers, manufacturers of storage buildings and outdoor patio furniture and similar enterprises. Another critical need at the present time is assistance in developing new markets for low-grade timber (e.g. firewood or pallet manufacturers). Financing and tax incentives are appropriate (see Section 4.3) and programs for both small and large manufacturers are needed, from woodcraft shops to sawmills.
· Forestry presents significant possibilities for generating additional tourism to the area. Recreational leasing of forest property for hunting and fishing is the most obvious economic opportunity but there are also possibilities in hiking trails, bird-watching and eco-tourism. Links to eating places, bed & breakfasts and other activities where landowners can earn an economic return are needed. Additionally, education regarding liabilities and insurance is needed to gain the interest of farmers in recreational leasing. Group purchases of insurance should be possible. Marketing will, too, be essential and this is an area where the proposed Agricultural Marketing Specialist can be particularly helpful.
Steuben County Fall Foliage· Forestry processors are typically large users of electricity and need help in negotiating special utility rates. This need is shared with the agriculture sector and can be addressed by organizing farmers and forestry enterprise owners as purchasing cooperatives or consortiums. Consultants who specialize in such negotiations should be made available to these groups to assist.
· There is a need to pick up on the work of the Sullivan Trail RC&D District and develop an Internet version of a Wood Products Directory to link Northeast wood users with Steuben County or regional producers. This would involve updating existing data on primary and secondary wood product manufacturers in the area, transferring it to a web page, perhaps conducting a trade show to bring mill owners and manufacturers together and follow-up work in establishing formal communications among buyers and sellers. It would also involve follow-up surveys and web page maintenance. Other types of promotion are also needed. The various small wood processors engaged in producing sheds and furniture, for example, should be jointly marketed by development of a simple brochure giving products, prices and directions. This is done very effectively in Lancaster County, Pennsylvania where many similar enterprises flourish.
· A comprehensive marketing study is needed to attract users of low-grade forest products by validating the flow of supply within the region. This involves quantifying the regional supply of wood chips, other mill residues and low-grade standing trees available. It also demands research to identify different products that can be manufactured from these resources including minimum wood requirements, break-even sizes of potential commercial operations, utility requirements, market evaluations, studies of the competition, probable pricing, financing required and analysis of geographic siting options. An independent forestry marketing consultant should be used to do the study. Funding may be available under the Trade Adjustment Assistance Program if a loss of business to imports can be documented (as is the case with nearby Proctor & Gamble).
· Woodlot management skills need developing. Many farmers and most new landowners in the County lack understanding of sound forestry management practices. Accordingly, continued education efforts in cooperation with the Department of Environmental Conservation (DEC) are necessary. Both general education and advocacy type technical assistance are required. Fortunately, Cornell Cooperative Extension of Steuben County has taken a serious interest in this subject and DEC is planning to employ a Forestry Utilization specialist at their Bath Regional Office in the near future . This person will directly aid landowners and mill owners in finding and developing markets for products. It is also important to continue with Forest Owner Workshops and to establish a local chapter of the New York State Forest Owners Association.
Implementation Period: 2002 (Continuing)
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
3) Sullivan Trail RC & D Council
4) Steuben County IDA
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4.11 Professional Farm Manager Development Initiative
The principal difference between successful and unsuccessful farm ventures is the level of management. Good managers not only survive, but prosper, and poor ones do not. Development of farm management capacity, therefore, is essential to the success of Steuben County agriculture. The following recommendations are offered along this line:
· Professional farm manager training, directed at managing for profit, not simply production, is needed. University extension and farm service agency programs nationwide have traditionally been yield-focused, but many Steuben County farm operations have reached the size where such programs no longer meet their needs. These producers instead rely upon suppliers, their cooperatives and industry associations for much of the specialized expertise they require. Meanwhile, smaller farmers find that yield-focused programs don't meet their needs either. They typically lack the resources and/or interest to expand.
This demands a focus of educational efforts on those needs that cannot be fulfilled elsewhere. These include training in water quality management, labor management, business planning, forward pricing, managing for premiums, Internet use, marketing, estate and tax planning, quality assurance, and low-cost input farming, with an overall objective of improving the profit-making skills of farm managers. The Agricultural and Farmland Protection Board hould work with Cornell Cooperative Extension to develop an intensive core training curriculum for professional farm managers and a certification procedure to reward those who finish the program. Cornell's Pro-Dairy Program can serve as one source of trainers and as a model for use with all farmers. The participants in the Dairy Farm Business Summary program provide a logical foundation for such a program.
· Managing costs in a commodity business is the best and often the only way to increase profits. Intensive education along this line is critically needed. As an example, while intensive grazing is not for everyone, it has the potential to dramatically increase the profitability of small to medium sized dairies. Cornell Cooperative Extension recently published a comparison of Dairy Farm Business Summary program data for grazing and non-grazing dairy farms. Three years of financial data were examined. The 36 farms that engaged in some form of rotational or intensive grazing enjoyed average net farm incomes per cow of $463 before taking appreciation of value into account, while the 77 non-grazing farms averaged only $339/cow. Results can obviously vary greatly from farm to farm, and year to year, but the potential for lowering costs through grazing is quite apparent. It is an economic option for small and medium sized dairies.
Feed costs can also be lowered by substituting alternative products such as beet pulp, sweet corn waste and brewers grains. Whey is another inexpensive food source and finding uses for it also helps the County's dairy processors. Educating farmers on its use in feeding programs should receive continuing attention.
Prices for inputs can also typically be lowered by 5% or more simply by purchasing in bulk. A small group of Schuyler County farmers have, for example, banded together as an informal buying cooperative. They meet monthly to determine their needs, solicit bids from regional farm suppliers and award annual contracts that members can then buy under individually throughout the year. It is a simple, yet very effective, program with no overhead. Semen and dairy supplies (towels, soaps, dips, etc.) are purchased through the program now. Some chemicals and fertilizers may be added. Clearly, there are opportunities for small groups of farmers in Steuben to do the same thing. There are a few examples of machinery sharing now in the County. There are numerous possibilities for group purchases in other categories. and many ways farmers could work together to reduce costs.
· Increasing production per cow and yields per acre are far more important than growing overall production. Culling low milk producers regularly and replacing them with higher producers, for instance, typically increases profits if heifer growing expenses are controlled. Replacement costs will not vary as much as milk prices. Moreover, earlier culled animals yield better slaughter prices. Dairy farmers need training in using the information available from the Dairy Farm Business Summary program and their own particular experience to develop culling guidelines that balance these various economic factors. The Dairy Farm Business Summary program involves 300 dairies in New York State and provides extremely valuable data for evaluating costs of inputs. There are also separate summaries for small and large dairies and intensive grazing farms. Enrollment in this program needs to be heavily promoted for the advantages it offers.
These training efforts should be focused on those farmers with the most management potential.
Implementation Period: 2002 (Continuing)
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
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4.12 Diversification/Specialization Initiative
Steuben County's agricultural industry needs to continue to both diversify and specialize along the following lines:
· There are opportunities in various new products (e.g yogurts) that can be produced on-farm or in cooperation with other organizations. On-farm dairy processing is a viable option for small to medium sized dairies. Organic dairying has distinct possibilities and is already being pursued. Agricultural tourism (discussed above) also offers potential. Other farmers can specialize in raising newborn calves and heifers, growing forages, renting out pasture, custom harvesting and similar ventures. Potato growers should explore options for diversifying into other crops, such as silage corn, to reduce financial risks. Corn silage and TMR sales to smaller farmers offer profit potential for the larger operations. Quality hay, frozen embryos, export cattle and high-protein Jersey milk are still additional opportunities for diversification and specialization.
· Niche marketing is essential for smaller farmers to achieve profit margins needed to survive at their reduced scales of operation, even though the niches may have to be changed from time to time. Local beef producers indicate they have to reinvent their operations every 8-10 years. Those who do, survive and prosper - those that don't, are soon gone. The role of the Agricultural Marketing Specialist (see Section 4.1) will be to provide some of additional expertise required to pursue these possibilities. Cornell Cooperative Extension can supply the educational support. However, much of the expertise needs to be provided in the context of an advocacy, rather than strictly educational, role.
· Strategic alliances between small and large farmers and grain/potato/vegetable and dairy farmers also need to be furthered. Potato farmers need to be encouraged to grow crops for dairy farms as part of their rotation program (done elsewhere but not popular in Steuben County). Intra-County sales of grain and other commodities need to be encouraged with the establishment of a local "forage finder" program and the promotion of commodity sheds.
· There is a concurrent and related need to encourage alliances among farmers, educational/research institutions, agribusinesses and County government. A public-private partnership between the County and one or more of the dairy cooperatives, for example, might involve using a single entity to do milk hauling for more than one cooperative, avoiding multiple truck trips past the same farms. Simultaneously, the County could work to upgrade its own roads (and influence the State and towns to similarly upgrade theirs) so as to eliminate weight limits and encourage the most efficient routing of the milk truck traffic. The result would be a win-win for everyone - reduced truck traffic overall, lower road maintenance costs and more profit in the milk for everyone to share.
· Similar joint ventures among local milk producers and food companies to test new products that will expand the milk market in the manner of the recently introduced "chugs" will also be win-wins for everyone. The chugs, as an illustration, have resulted in 28% growth in sales of cold door milk products where introduced by Dean Foods as contrasted with 23% declines where chugs were not available. The Agricultural and Farmland Protection Board can promote these various strategic alliances simply by bringing the parties together through conferences and seminars and by making available financial incentives for agribusinesses such as those discussed in Section 4.3.
Implementation Period: 2002 (Continuing)
Responsible Parties:
1) Agricultural Marketing Specialist
2) Agricultural and Farmland Protection Board
3) Cornell Cooperative Extension of Steuben County
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4.13 Quality Assurance Initiative
Many farmers in Steuben County, and elsewhere, do not put enough effort into producing quality products for their markets. This has deprived them of significant additional revenue and lowered their ability to compete. As an example, a recent visit to a regional milk buyer indicated that most dairy farmers can take advantage of premiums for quality, protein and volume that add as much as 70¢ to 90¢ per hundredweight to the price. Yet, less than half this processor's milk suppliers applied the management required to obtain these premiums. The average payout was far less than it could be.
Managing for premiums by culling problem cows, controlling bacteria and using an effective mastitis control program is a relatively easy way to add 5% or more of value to milk without increasing overhead. A cow free of somatic cell problems also produces more milk. Additionally, dairy farmers can take advantage of the component pricing by managing for fat, proteins and solids. Payment based on these components allows farmers to change the nature of your product and add value to it.
Similar challenges exist elsewhere in the agricultural sector. Bruising of potatoes at harvest can result in greater losses due to increased pickouts or even the rejection of entire loads by chip processors. A regional meat packing facility reports that it has extraordinary difficulty buying beef animals locally that are of consistently good quality. Beverage wholesalers and distributors don't want to do business with wineries that don't deliver consistent tasting products. Virtually every agricultural industry suffers with this problem and it is one of the reasons larger processors and food buyers want to deal with larger cooperatives and they, in turn, want to deal with larger farmers - everyone wants a consistent supply of good quality product. Quality is even more essential for the smaller farmers, however, because they require higher revenues to support their overhead and this requires the added value only quality can offer.
Quality assurance, consequently, is a concept that the farm community must learn and adopt. It is, perhaps, the single easiest way to add value to farm products but the one most often overlooked. Most other industries have focused on quality assurance programs. The Agricultural and Farmland Protection Board needs to address this challenge through a combination of education and the development of a Total Quality Improvement (TQI) program for Steuben County agricultural producers. Such a program should include the following elements:
· It should include recognition for quality producers via award presentations, news releases and signage. The dairy industry has done some of this but it needs to be a more formal and widely understood program with credibility outside the farm community. It also needs to include other agricultural sectors. A catchy name with local significance that will attract curiosity should be attached to it for these purposes (e.g., "Pride of Steuben," "Pulteney Prime Producer").
· It should be linked with the Pride of New York and Finger Lakes Culinary Bounty programs. This will add credibility to the TQI program and give it promotion value.
· It should include basic quality indicators for each industry and modestly expand on these with factors unique to Steuben County needs. The New York State beef industry has a quality assurance program that can be modeled and expanded upon, for instance. Criteria particularly to Steuben might restrict the use of antibiotics after calf weaning, standards for potato tuber quality, etc..
· It should include customer service training. This is needed to equip some farmers with the skills to direct market products. It is also important for farmers to view processors as their customers - buyers they need to cultivate by offering consistently high quality products. Quality delivered is the best tool for ensuring future markets and the possibility of negotiating for better prices.
Implementation Period: 2003
Responsible Parties:
1) Agricultural and Farmland Protection
Board
2) Cornell Cooperative Extension of Steuben County
3) Steuben County Farm Bureau
