What is at Stake in the next Year in Albany?

No one has a lock on tomorrow. We each can offer our most sincere educated estimate about the future. We must try to stay within our known borders and then project what could possibly happen. With total 100% certainty the political climate in Albany in 2019 will be changed. We know for certain that all three chambers now rest comfortably within one party. This makes passage of party programs significantly easier to obtain. Based upon the history of the last decade, it is safe to assume new legislation will be offered up that will significantly impact our industry. The question yet to be decided will be whether we can withstand these revolutionary changes?

The most obvious issue that will be facing NYS agriculture will it be mandated, like all other segments of labor, to pay employees on a 40-hour work week and pay time and a half? Collective bargaining is also of concern. For today let us simply look at time and a half on a commercial fruit farm. To do this we will make a few assumptions. We will assume that for this farm to maintain a credible work force that they are in the H2A program. Last year the adverse effect wage rate was $12.83.  We do not know the new one but it most likely will be in the range of $13 plus.  For today I will use last year’s rate. For my calculations I am going to say harvest was 10 weeks. I am going

Paul Baker,
Executive Director
NYSHS

to say the farm employed 50 workers. The average work week in harvest was 60 hours. In 2018 then that farm had a weekly hourly outlay just for harvest wages of $38,490. (60 hours X $12.83= $769.80 per employee. Now X 50 employees = $38,490 per week). This, of course, does not consider State unemployment and workers comp related costs. If we now do the same exercise at time and a half for this same farm, we see his direct costs rise to $2 shy of $900 per man per week. So, his new payroll will be up (40 hours X $12.83= $513.20 plus 20 hours at $19.25= $385). So, the new weekly pay check will be then $898.20. Same crew and not one extra bushel harvested. This farm will then have a weekly payroll of harvest employees alone of $44,910 plus other employment charges (50 employees X $898.20= $44.910).

For our simple example, Fruit Farm X has an increase of $6,420 per week ($44,910 – $38,490 = $6420). Now over 10 weeks we see an increase to harvest employees alone of $64,200. Same production.

The NYS minimum wage in 2019 is $11.10. This is $3.85 above the federal minimum wage. If you are in H2A you are paying $5.58 above the federal minimum wage. Farm wages are not by any means the lowest in the land. They greatly exceed the average small business sectors up and down main street. We need to make this point. Each farm employee creates multiple off farm jobs in NYS. Clearly NYS fruit farms cannot remain competitive if they must absorb these new estimated charges. A compromise must be reached, or we will see NYS forever altered. I remind everyone of the stark reality that once a farm operation closes its doors it never returns. Are we ready to see this radicle change in our State? Now is the time for everyone to get concerned. Currently, we have not seen the legislation we did our math homework on in this State. Today is not too late to begin a very serious debate.

I am asking each of you to rethink all the issues. As farmers, we are not immune to annual changes in weather, technology and markets. It comes as no surprise to anyone that labor availability is tied to higher wages. Agriculture in NYS is tied to a very high usage of labor. We are not an Iowa corn-based economy. As the new year arrives each of you need to educate yourself on all levels. Take advantage of educational programs such as the Becker Forum coming in January 2019. Reach out to your respective NYS legislators and have a discussion with them as to what is at stake. Support the efforts of your respective organizations that are presenting logical debates to many of these proposals.  If you fail to speak, I assure you this void will be filled by voices that have no real skin in the game. Action will occur. I encourage you to be a part of it.

 

Who will be the farmers of the next generation?

It is a simple truth that as human beings we are most comfortable with the things we fully understand. New concepts present a challenge to this comfort zone. In most every instance I can imagine when confronted with change you need to accept it in small bites. To try to tackle an enormous change is, in most cases, a good formula for frustration leading to failure.

When I was an active farmer I tried to attend as many of the educational seminars that were applicable to my operation. Many times I learned as much from discussions with my peers at these meetings as I did from the structured presentation. In truth, probably well over 75% of the information was redundant to me or ideas I had tested and decided that they offered no practical usage on my farm. It was in that remaining 25% that drew me to these meetings. If I could learn what to do and often times equally important what not to do I felt I was moving ahead.

I had a recent opportunity to be in conversations with a group of growers about what was the cost of attending a seminar. The opinion was expressed that if it exceeded a set amount it was simply too rich and they were wise to not attend. Now of course all presentations are not great eye opening events. For the sake of this example let us say the fee was $100. What can you really buy today with $100 on a farm?  Maybe one day of labor from a minimum wage employee? If that seminar helped you to avoid a compliance audit, a housing violation, an EPA investigation was it then worth it? The answer is of course yes. Education has never been easy and it has always come at a cost. The farmer that will be successfully running a farm in the next decade will have embraced this truth.

I will not expose who has been quoted saying this but I fully agree with the statement. It is the grower that refuses to embrace change and adapt to these policy changes that will be out of business within 10 years or less. Not all changes are ones we advocated but when those changes become the public policy (Law) then we must learn to work around them. To ignore them is to make a direct call to being audited and investigated. Ignorance because you did not attend these workshops will never be an acceptable defense. The next generation successful farmer will be aware of these changes and be making corrective steps to deal with them.

I encourage each of you to make yourselves aware of the many opportunities you have to keep current on CHANGE.  It will always be waiting for you each year. Observe your peers that you see as doing well. Those that appear to be finding ways to meet these new demands. You can survive tomorrow but not if you refuse it and only operate as you did yesterday.