Mindset of Agriculture Today While we Await the Outcome of Senate 2837
I thought it might help to hear what is on the minds of Agriculture in New York today. As the Director of 3 farm boards, I receive, on a daily basis, calls from farms asking me to project the outcome of this legislation. Nature does not allow these farms to set everything on the back burner and await the final outcome. They must make real world decisions today that may or may not really be in their best interest depending on this piece of legislation. Here are a few of those decisions/questions;
- Should I put my farm up for sale today before this Bill becomes a reality? There is little question that land values will take a dip if this Bill passes. I know of large farms that have in fact sold or have placed their farms up for sale before land values fall.
- What about investing in new land, equipment, storages, employee housing both new and improved are just a few of the questions that are on hold.
- Should I return my seed/trees for a credit or plant it? I am unsure if I will be able to afford the labor cost later this year.
- I actually have dairy farms that are slaughtering new calves because they cannot afford to feed them under current economics. Just meeting current bills is an impossible task. If this Bill passes as currently drafted they see no path forward.
- Estate planning? How do we plan for tomorrow not knowing if we can survive the future costs here in New York? Young farmers are looking to other careers.
- How do I craft contracts for 2019 if I cannot project my labor costs?
- Time to lock in on seasonal recruitment of my labor for 2019. Can I sign a work order if I do not know the terms for myself or my employees? H2A agreements need to be crafted and advertised. If I limit my men to 40 hours will I be able to attract my experienced labor to my farm?
Most every farm at this date is locked into the 2019 crop. They are very uncertain as to the rules of employment and what this will mean for their operations. Nature will not wait. Crops need to be set in a timely basis to meet harvest before the frost of winter arrives. Overhead dictates farms must move forward. The costs of not doing so would be equally damaging.
I understand that we need to ensure that every employee is protected under the rules of fair labor. I see this discussion having huge long term effects on the state economy. We are in the midst of annual minimum wage increases here in New York. Due to the chronic lack of New Yorkers who will work on farms we must recruit from outside our state borders and often from outside our national borders. In order to manage our farms the reality is we must attract workers to our State. Farms, out of necessity, are using the federal program H2a.
Farms this year will have no choice but to accept the final language of this legislation for crop year 2019. The real impact will come as soon as crop year 2020. Once the true cost of labor is known, farms will drastically shift into new farming practices. If they see that they cannot pass on the new labor costs they will lose their markets. Traditional crops will have to be reassessed as to their feasibility. In short, agriculture will have no choice but to take on a whole new look. Only time will tell if this look is good for both farms and their employees.