AG ONE Newsletter March 20, 2017

DEPARTMENT ISSUES AVIAN INFLUENZA PRECAUTIONARY

According to Secretary Russell Redding as quoted in a PA Department of Agriculture March 6 press release, “After a year reprieve, high-path avian influenza is back in the lower 48 states and that should be a cause for concern. The best defense against HPAI is a good offense, beginning with an effective biosecurity plan that has been prepared, planned and practiced by individual facilities. The Pennsylvania Department of Agriculture also urges flock owners to develop a site-specific HPAI flock plan.”

Per the Department, there is $2 million dedicated to this purpose in addition to the $1.1 million already invested in preparedness during FY 2015-16.  The Department’s State Veterinarian, Dr. David Wolfgang, explained that biosecurity plans should focus on cleanliness and isolating domestic birds from those in the wild. This also means keeping livestock, domestic animals, rodents and other pests away. Agricultural producers have also been made aware that that the virus can be carried on shoes and boots as well as tools and vehicle tires, so flock owners should limit visitors and deliveries to only those who have cleaned and sanitized appropriately.  Those who see signs of infection are urged to call 717-772-2852.  PDA’s website has a section dealing with HPAI and biosecurity measures, www.agriculture.pa.gov

TRUMP BUDGET CUTS FEDERAL RURAL DOLLARS

The Federal Budget proposed by President Donald Trump increases spending for Defense/Homeland Security and includes major cuts at the State Department/ foreign aid programs as well as cutting resources for the Environmental Protection Agency and USDA.  Discretionary spending for USDA saw a $4.7 billion or 20.7% reduction.  This was third largest percentage cut after the EPA (-31.4%) and the State Department (-28.7%).  This Budget includes discretionary spending which makes up about a quarter of the total Federal Budget.  In May, President Trump is expected to lay out his ideas for mandated programs such as Crop Insurance and other farm programs.  Some of the cuts enumerated in this proposal include cuts to USDA county –level staff, NASS funding, elimination of USDA’s rural wastewater and water loan and grant program (consolidating into an EPA program).  The Budget also seeks $350 million for agriculture research funded through the Agriculture & Food Research initiative, half of what was authorized in the 2014 Farm Bill. USDA nutrition programs (WIC and SNAP) would see a $200 million drop.  The elimination of Chesapeake Bay funding prompted Acting DEP Secretary Patrick McDonnell to say that the proposed Federal Budget would “abandon farmers.”

BILLS TO WATCH

  • House Bill 587 (Zimmerman-R-Lancaster) and Senate Bill 487 (Vogel-R-Beaver) mandate creation of a DEP online tracking system to see where DEP permit applications are in the approval process.
  • House Bill 790 (Pashinski-D-Luzerne) replaces the Noxious Weed Control Act of 1982 with an updated Controlled Plant & Noxious Weed Act.
  • House Bill 187 (Sonney-R-Erie) allows preserved farms to grant right of way for wind energy generation.
  • House Bill 503 (Charlton-R-Delaware) proposes Growing Greener III to provide a potential $315 million for conservation, farmland preservation, etc. Senators Killion, Alloway and McIlhinney plan similar legislation in the Senate.
  • House Bill 557 (Everett-R-Lycoming) seeks to protect property owners’ rights when it comes to natural gas royalty payments. Similar legislation (Senate Bills 138 and 139) from Senator Gene Yaw (R-Lycoming) is seeing Senate action.
  • House Bill 251 (Kauffman-R-Franklin provides for a Farmland Preservation license plate.
  • Senate Bill 246 (Leach-D-Chester/Delaware) prohibits use of certain antibiotics in farm animal feed

AND, IN CASE YOU MISSED IT, The PA House adopted House Resolution 67 (M. Keller-R-Perry) recognizing the week of February 18-25, 2017 as “FFA Week”.

PEOPLE…

PDA Deputy Secretary Cheryl Cook was awarded the National Farmers’ Union’s highest honor, The NFU Meritorious Service Award at the group’s annual convention in San Diego.

GRANTS/SCHOLARSHIPS

  • Monsanto offers $10,000 and $25,000 grants to school districts nominated by farmers.  If awarded, grant(s) will help a school district develop or strengthen a Math/Science program.  Nominations of school districts must be submitted by April 1, 2017.  Monsanto will contact a nominated school district to help them develop a specific proposal – with a quick turn-around of April 15.  Details: www.GrowRuralEducation.com .
  • Bayer Bee Care Leadership Award recognizes partnerships between beekeepers and growers, golf courses, researchers, or other stakeholders to protect pollinators.  Award is $5,000.  A $1,000 award recognizes a young beekeeper under 18 years of age for school or community work in building apiaries and researching ways to improve honey bee health.  (May 17 deadline) Contact: https://www.cropscience.bayer.us/contact
  • PA Septage Management Association offers a $1,000 scholarship to an employee, child or grandchild of those involved in onlot systems installation or maintenance.  Deadline for applications is May 15, 2017.  (NOTE: PSMA member companies only).  Details: www.psma.net

GENERAL FARM ORGANIZATION SCHOLARSHIPS

  • PA Friends of Agriculture Foundation (PA Farm Bureau) for Penn State, Delaware Valley, or University of Pennsylvania School of Veterinary Medicine pfb.com
  • PA State Grange pagrange.org for Penn State. There is also a separate scholarship for those enrolled in an interpreter for the deaf program.  NOTE: Deadline is May 1, 2017.
  • National Farmers Union www.nfu.org/education/scholarships   It does not specify a particular college.

Budget Numbers (Still) Improving

budget paThe PA Revenue Department May 4 announced that collections in April exceeded expectations by $201 million.  This brings year-to-date revenues to $569.1 million above estimate.  This extra revenue was seen in Corporate Net Income Tax, Personal Property Tax, and Sales & Use Tax.  Two areas where revenues came in lower than anticipated were Real Estate Transfer Tax and cigarette/table games/liquor taxes.  This $569.1 million surplus may impact Budget negotiations between the Governor and General Assembly.

Don’t Miss the March 3 PSCFO Meeting!

Cornucopia 2012 200x167The March 3 Council program will feature both Republican and Democratic Chairs of the House and Senate Agriculture & Rural Affairs Committees to discuss what agricultural issues are likely to come up before the General Assembly.

In addition, PA Agriculture Secretary Russell Redding will present some of the Wolf Administration’s thinking on how PA Agriculture jobs and workforce development are central to Pennsylvania’s total economic well-being.

March 3 is also the day when Governor Wolf presents his State Budget for the fiscal year beginning July 1, 2015 to the General Assembly so expect plenty of buzz about the Department of Agriculture budget.   The PSCFO Board truly hopes you will attend this informative and useful session.

Click here for more information.

State Tax Revenues Continue Upward Trend

Graph-UpThe PA Department of Revenue released figures showing January 2015 General Fund revenue at $2.4 billion, bringing year to date collections $360.4 million over estimate.  Breakdown showing year to date estimates are: Sales Tax $66.6 million more than anticipated; Personal Income Tax $400,000 over estimate; Corporate Tax Revenue $162.6 million more than anticipated; Inheritance Tax revenue $81.5 million more than anticipated; Other General Fund taxes (tobacco, malt beverage, liquor and table games) showed $23 million above estimate.  On the negative side was the Real Estate Transfer Tax which came in $28.4 million below estimates.

Why the Budget Buzz?

BudgetThe Independent Fiscal Office (IFO), created by the General Assembly in 2010 to give the legislature a separate tool for State Budget analysis, released a report that said PA is in for hard times (http://www.ifo.state.pa.us/Releases.cfm).

IFO said that the fiscal year State Budget beginning July 1, 2015 could not utilize the $619 million one-time devices and $572 in non-recurring revenues used by the Corbett Administration to balance this year’s budget and so will be $1.85 billion in the red for FY 2015-16.

Part of that analysis included an IFO prediction that PA would have $171 million less than expected this fiscal year — and that figure may be questioned given  better than estimated revenue numbers reported for October and November — $109 million more than anticipated for this fiscal year.

IFO, the Corbett Administration and the incoming Wolf Administration agree that the Commonwealth will be challenged but there is significant disagreement as to the causes and obviously whether or not the Corbett Administration got Pennsylvania out of a Rendell fiscal hole or into a new one.

The Governor’s Budget Office’s December 3 briefing recognized the fiscal shortfall. Budget Secretary Charles Zogby said that “we’ve faced these sorts of deficits every year in this administration” and they are due to mandated costs exceeding revenues.  For the 2015-16 Fiscal Year, Zogby said that there would be spending increases in debt service (interest), corrections, pensions, and in the Department of Human Services (formerly Department of Public Welfare).

Governor-elect Wolf’s transition team issued a statement December 2 which said:

  • The FY 2014-15 Budget was built on one-time revenue sources
  • Prediction: PA will be cash-flow negative from January-March 2015.
  • The state has maxed its line of credit
  • PA is 50th in the nation in job creation.

Secretary Greig Invites PSCFO to Town Meeting

greig_official-300x250HARRISBURG – On August 14 at 10:00 a.m. in the Red Barn, PDA Secretary Greig has invited members of the Pa. State Council of Farm Organizations to participate in a Town Hall meeting. This will be an open dialogue between the Department and attendees.

Among other things, discussions will include FDA regulations under the Food Safety Modernization Act (FSMA), implementation of the Farm Bill, the PDA Budget for the state fiscal year beginning July 1, 2014, and a host of other regulatory topics.

Other topics of interest to PSCFO members such as the EPA’s proposed water definition and the feral hog issue may also be addressed.

RSVPs are needed because of limited seating.  Ben Junkin 717/787-5789, bejunkin@pa.gov

Agriculture Survives State Budget Woes

budget paThe Pa. Department of Agriculture survived the state budget gauntlet in Harrisburg for Fiscal Year 2014-15 which began July 1. PSCFO wrote legislative leaders June 29 to say Many of PSCFO’s sixty-plus agricultural organizations are directly affected by the staff capacity at PDA. In this case, a modest increase will stabilize the PDA budget and allow it to meet its directives from the General Assembly.” Following are a number of PDA budget line items compared with the last fiscal year.

 

Line Item                    2014-15 Enacted Budget        2013-14 Available                Change

General Gov’t Operations       25.269 million                       22.703 million                     +11.3%

Ag Excellence                               1.1 million                               600,000                     +83.3%

Farmers’ Market Coupons        2.079 million                         2.079 million                       same

Ag Research                                  787,000                                787,000                       same

Promotion, Ed. & Exports               250,000                                196,000                     +27.6%

Hardwoods Promotion                   350,000                                350,000                        same

Livestock Show                             177,000                                177,000                        same

Open Dairy Show                           177,000                                177,000                        same

Youth Shows                                 140,000                                140,000                        same

State Food Purchase              17.438 million                        17.438 million                        same

Marketing & Research                     494,000                                494,000                        same

Nutrient Management               2.714 million                          2.714 million                        same

Conservation Districts                     869,000                                869,000                        same

Land Scrip Fund                      46.237 million                        46.237 million                       same

(NOTE: This is not what Penn State Ag Research and Extension was budgeted for last year.  Comparison is for the available funds, not the budget-approved amount.)

PA Preferred                                   550,000                                550,000                        same

UPenn Veterinary                           28 million                               28 million                        same

UPenn Infectious Disease                 261,000                                261,000                        same

http://www.portal.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566

What Governor Vetoed in the 2014-2015 State Budget

budget paOn July 10, Governor Corbett signed the new state budget into law but expressed dismay in that the General Assembly did not pass pension reform, something he said had to be done.  To send a message, he vetoed $65 million in monies out of the funds allocated to the General Assembly.  He also vetoed items on which the media did not report:

  • Dept. Environmental Protection $150,000 (environmental program management)
  • Dept. Environmental Protection $700,000 (sewage facilities planning grants)
  • Treasury Department $45,000 (general gov’t operations)
  • Dept. Community & Economic Development $250,000 (financial institution grants)
  • Dept. Community & Economic Development $300,000 (Intergovernmental Cooperation Authority)
  • Dept. Conservation & Natural Resources $$500,000 (parks)
  • Labor & Industry $250,000 (general government operations)
  • Civil Air Patrol $100,000
  • Dept. General Services $5 million (rental, relocation and municipal charges)
  • Reduce Machinery & Equipment Loan Fund from $100 million to $85 million
  • Small Business First Loan Fund (for agriculture, tourism, manufacturing) from $100 to $95 million

It’s High Noon Budget Time

budget paIt’s crunch time to enact the State Budget for the fiscal year beginning July 1, 2014. It’s all about money since revenue projections for this year were not met, $108 million short in May for example.

Governor’s Budget Cuts Many Ag Areas

Agriculture has a huge stake in the outcome given numbers of specific line items not included in Governor Corbett’s original proposal: PA Preferred, Centers for Dairy and Beef Excellence, agricultural research funding in the PDA budget – adequate funding for Penn State’s Cooperative Extension/Agricultural Research is another important issue.

PDA Cuts Not Restored

The initial vehicle for the Budget is House Bill 2328 (Adolph-R-Delaware) which was reported out of the House Appropriations Committee June 9 and re-referred to the House Rules Committee June 11. It reinstates many of the proposed Agriculture cuts but does not include the Governor’s request for an increase in PDA’s General Government Operations budget. Senate vehicle is Senate Bill 1431.

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