December 15, 2006

The Honorable Sheldon Silver
Speaker of the Assembly
Room 349, State Capitol
Albany, New York 12248

Dear Speaker Silver,

As Chairperson of the Assembly Standing Committee on Agriculture, I respectfully submit to you the 2006 Annual Report. I have outlined the Committee’s significant legislation and our outlook for the 2007 Session.

The Committee was successful this year in promoting legislation that was crucial to help family farms remain solvent and profitable by reducing regulatory burdens for agriculture, creating new promotional opportunities for New York-grown products and providing funding for critical farm programs and research, including support for several new initiatives. The Committee also made significant progress toward improving New York’s food safety standards and enhancing the humane treatment of domestic and companion animals.

Many issues and challenges face the agriculture industry, especially the small farmer. I look forward to your continued support and leadership in addressing these challenges.

Sincerely,

2006 ANNUAL REPORT

OF THE

NEW YORK STATE ASSEMBLY

STANDING COMMITTEE ON AGRICULTURE

William Magee
Chairman

1. Committee Jurisdiction

2. 2006 Committee Accomplishments

   1. Agribusiness Development

   2. Farmland Protection

   3. Dairy Issues

   4. Food Safety

   5. Animal Safety and Control

   6. Other Issues

3. Public Hearings and Roundtables

4. Budget for Agriculture

5. Outlook for 2007

Appendix A: 2006 Summary of Action on All Bills
Referred to the Assembly Committee on Agriculture

Appendix B: 2006 Agriculture Committee Bills
That Became Law

Appendix C: 2006 Agriculture Committee Bills
That Passed the Assembly

Appendix D: 2006 Agriculture Committee Bills
That Were Vetoed

The Assembly Standing Committee on Agriculture is responsible for legislation that relates to the Agriculture and Markets Law, oversight of the Department of Agriculture and Markets (the Department), and the budget of the Department. The Committee works closely with institutions of higher learning to promote agricultural research and development. The Committee also monitors and, at times, mediates policy disputes and conflicts when agricultural issues are involved.

Some of the major topics investigated by the Committee as part of its legislative and oversight functions include, but are not limited to food inspections and safety, farmland protection, farm product sales and marketing, agribusiness licensing and regulation, humane treatment of domestic animals and pets, kosher laws and animal disease. The Committee also works to repeal unnecessary or unenforced laws and programs, if such actions are in the public interest.

The Committee also provides sponsorship, input and support for agriculturally-related program legislation referred to the Committees on Insurance, Energy, Labor, Economic Development and Environmental Conservation.

1. DEVELOPING NEW YORK’S AGRIBUSINESS

   New York State offers many advantages for food producers and processors. However, as both seek to diversify their operations to keep pace with a rapidly changing marketplace, technological advances and more stringent environmental requirements, the Committee seeks to strengthen the State’s leadership role accordingly. The Chairman recognizes this need and places it at the top of his priorities.

   1. Authorizing the Purchase of Out-of-State Grape Juice for Winemaking

      This chapter allows farm wineries to purchase grape juice for use in winemaking from an out-of-state source under certain, specific conditions of severe crop loss. This would only be allowed if such juice could not be purchased from any other New York source. (A.10242-B, Magee) (Chapter 227 of the Laws of 2006)

   2. Providing Funds for Farmers’ Markets for Administration and Promotion

      This law will improve the long term viability and growth of smaller farmers’ markets by providing funds to assist with administration and promotion. (A.10624-A, Magee) (Chapter 612 of the Laws of 2006)

   3. Allowing Real Property Exemptions for Maple Syrup Production Structures

      This chapter ensures that structures and buildings used in the production of maple syrup qualify for the ten-year real property exemption currently provided to producers in Section 483 of the Real Property Tax Law for other agricultural commodities. (A.10623-A, Magee) (Chapter 509 of the Laws of 2006)

   4. Encouraging the Planting of New Grape Varieties

      This law encourages the planting of new grape varieties in response to New York’s burgeoning grape and wine markets by extending the real property tax exemption for orchard or vineyard land used solely for replanting or crop expansion from four to six years. (A.10855-A, Magee) (Chapter 680 of the Laws of 2006)

   5. Ensuring Timely Payment for Apple Producers

      This chapter requires that a producer receive a certificate of inspection from either a State or Federal food inspector stating the grade of apples upon receipt and, in the absence of a document signed by the producer and the dealer stating the standards to be used in the inspection and grading, that the current standards for processing apples adopted by the United States Department of Agriculture (USDA) be used. (A.11267, Koon) (Chapter 682 of the Laws of 2006)

   6. Promoting Urban "Greenmarkets"

      This bill would provide for the planning and development of regionally-based urban greenmarkets. Such markets would be similar to existing farmers’ markets, but would target the need to provide New York producers with increased market opportunities while assisting with revitalization in cities and urban areas. This would be accomplished by bringing farm products and crafts into such areas and allowing for direct sales to consumers. (A.869, McEneny) (Passed Assembly)

   7. Grants Program for Processors and Packagers of New York-Grown Products

      This bill would provide financing through the Empire State Economic Development Fund for projects facilitating processing and packaging of New York farm products to meet the needs of institutional food services such as restaurants, schools and other food service operations. (A.8003, Ortiz) (Passed Assembly)

2. AGRICULTURAL DISTRICTS (Protecting Farmland)

   New York State has approximately 36,000 farms and 7.6 million acres of farmland producing corn, dairy products, fruits and vegetables. Unfortunately, the conversion of farmland to forest and suburban housing continues at a significant rate. Preserving farmland remains an important challenge to State government. Programs proposed by the Assembly Agriculture Committee are directed at ensuring that essential farm operations are recognized by the State regulatory framework and easing financial burdens on farmers.

   1. Christmas Tree Acreage Now Eligible for Agricultural Real Property Assessment

      This chapter authorizes land of not less than seven acres, upon which newly-planted Christmas trees have been planted, to be eligible for an agricultural assessment during the operation's first, second, third, fourth or fifth year of agricultural production. (A.10854-A, Magee) (Chapter 256 of the Laws of 2006)

   2. Raising Awareness of "Right to Farm" Laws for Recent Residents of Agricultural Districts

      This chapter requires real estate disclosure notices to include a statement notifying potential buyers that they may contact the Department of Agriculture and Markets for information on Right to Farm Laws. The law also requires the Department of Agriculture and Markets to develop and make available such information in a practical and understandable format. (A.10697, Magee) (Chapter 248 of the Laws of 2006)

   3. Enabling Farmers to Retain Tax Benefits in Unusual Circumstances

      This law permits farmers to file an agricultural real property exemption application with a local taxing jurisdiction after the filing deadline in certain situations, including death or family illness. Similar waiver provisions have been granted to senior citizens that fail to timely file a senior citizen real property exemption application pursuant to Real Property Tax Law section 467. (A.10626-A, Magee) (Chapter 689 of the Laws of 2006)

   4. Protecting Farm Operations and Agritourism

      This bill would include agricultural tourism as a practice the Commissioner of Agriculture and Markets may deem agriculturally sound, thereby offering farm operations a greater measure of protection against private nuisance suits. (A.9995-A, Koon) (Chapter 600 of the Laws of 2006)

   5. Creating an Inventory of Farms and Farmland for Sale

      This bill would assist beginning or expanding farmers by making readily available information regarding farms and farmland for sale throughout New York State. The bill would require the Department of Agriculture and Markets to initiate and maintain an inventory of farms and farmland for sale in the State. (A.4798, Magee) (Passed Assembly)

   6. Consulting on Land Use Regulations Regarding Agricultural Practices

      This bill would authorize the Commissioner of Agriculture and Markets, upon the request of a municipality, farm owner or operator, to render an opinion to local government officials on land use regulations pertaining to agricultural practices. (A.5744-A, Cahill) (Passed Assembly)

3. DAIRY ISSUES

   Dairy products are vitally important to the economy of New York State, representing the vast majority of the State’s agricultural industry. New York remains third in the nation for both milk and cheese production and is the top producer of these commodities in the Northeast, despite a significant decrease in cash receipts in 2006 over the previous year, weakening bottom lines as producers struggle with increased fuel and feed costs. While milk pricing is primarily established by Federal order, the Chairman recognizes the continued need to help producers diversify, find new markets for their products and ensure that farmers receive payments in a prompt manner.

   1. Increasing Payment Protection to Dairy Farmers and Farm Product Producers

      This chapter provides increased payment protection to New York’s dairy farmers and farm product producers by increasing the maximum amount allowed to be held by the Milk Producer Security Fund and the maximum surety bond amount required from farm products dealers. (A.11451, Alessi) (Chapter 273 of the Laws of 2006)

   2. Notifying Producers Regarding Changes to Milk Marketing Agreements

      This bill would require the Commissioner of the Department of Agriculture and Markets to notify milk producers who are members of certain dairy cooperatives in the event of proposed changes to milk marketing agreements and/or orders. It would also require that such notification occur not less than thirty days prior to the referendum date and include the nature of the proposed amendment. (A.7353-A, Aubertine) (Passed Assembly)

4. FOOD SAFETY

   Staffing levels at the Department's Division of Food Safety and Inspection remain a concern for the Assembly Agriculture Committee. The ratio of food inspectors to food establishments in New York State remains dangerously low, with approximately 115 inspectors for over 30,000 stores statewide. Yet, budgetary proposals continue to request the elimination of further positions. The Committee believes that this does not provide adequate protection to consumers from food-borne disease. Sickness from adulteration, improper observation of storage and other sanitary concerns pose a serious threat to public health. In response, the Agriculture Committee passed legislation to enhance the effectiveness of New York’s food safety programs.

   1. Licensing the Manufacturers of Commercial Feed

      This chapter requires commercial feed manufactories in the State to be licensed and inspected annually. The USDA has repeatedly demonstrated an inability to inspect such businesses regularly. (A.196-A, Markey) (Chapter 554 of the Laws of 2006)

   2. Establishing Technical Changes Regarding Food Safety Education Program

      This law makes technical changes to the New York State Food Safety Education Certification Program (Chapter 665 of the Laws of 2005) to require that a food store’s certified designee must be in a position of management. (A.9314, Pheffer) (Chapter 80 of the Laws of 2006)

   3. Allowing Time to Secure Mandatory Pasteurization Equipment

      This chapter gives apple cider producers an additional year to comply with a new State law requiring such producers to pasteurize their product. The new effective date of the 2005 law is January 1, 2007. (A.11232, Magee) (Chapter 265 of the Laws of 2006)

   4. Ensuring Safe Transportation of Food Products

      This bill would ensure maximum safety and quality of food products during transportation in the State by allowing Department inspectors to examine common carriers transporting food and food products under conditions that could lead to adulteration. Current law exempts common carriers from this provision. (A.338, A. Gunther) (Passed Assembly)

   5. Suspending Slaughterhouse Licenses after Three Consecutive Failures

      This bill would require the Department to suspend licenses issued to any establishment where animals or fowls are slaughtered or butchered for food if such establishment fails three consecutive inspections. The legislation would also require these facilities to conspicuously post the results of their last sanitary inspection in a manner similar to what the State now requires for retail food stores. (A. 1280-B, Nolan) (Passed Assembly)

   6. Increasing the Frequency of Slaughterhouse Inspections

      This bill would require the Department to inspect every slaughterhouse in the State at least once per year and require each slaughterhouse to post a copy of such inspection. Any slaughterhouse failing three consecutive inspections would be ordered to cease operating until passing an inspection. (A.1557, Nolan) (Passed Assembly)

   7. Notifying Zoning Boards of New Slaughtering Operations

      This bill would require the Commissioner of Agriculture and Markets or his or her authorized agent to notify municipal zoning boards in the event that a business commences additional slaughtering operations other than those for which the Department has issued a license. (A.1783, Clark) (Passed Assembly)

   8. Enhancing Food Safety Programs

      This bill would create a nine-member advisory board within the Department of Agriculture and Markets on food safety and inspection programs, which would advise the Commissioner on the enforcement of food safety laws and regulations. The Board would also review existing and proposed laws and regulations and report to the Legislature on needed changes. (A.3714, Cook) (Passed Assembly)

   9. Allowing Additional Time for Food Safety Education Compliance

      This bill would allow food stores an additional thirty days to designate an employee as having completed an approved Food Safety Education Certification Program in accordance with Chapter 665 of 2005 under certain circumstances. (A.10006, Pheffer) (Passed Assembly)

5. ANIMAL SAFETY AND CONTROL

   New York residents care deeply for the health and safety of their pets. Information gathered during statewide hearings in previous years continued to inform the Assembly Agriculture Committee’s pet agenda for 2006. The Chairman prioritized legislation to regulate pet boarding facilities, strengthen animal welfare, better assist inspectors in implementing existing law and encourage responsible pet ownership.

   1. Clarifying the Definition of Pet Dealer

      This law modifies the previous definition of "pet dealer" to include any person who offers for sale more than nine animals per year for profit to the public, in addition to those who have sold more than nine animals per year for profit to the public. (A.9576-A, A. Cohen) (Chapter 687 of the Laws of 2006)

   2. Clarifying Laws Regarding Dog Licensure

      This chapter amends Chapter 269 of the Laws of 2005 to clarify that dog licenses may be issued for a period of one, two or three years, and makes a technical correction related to the expiration dates of licenses as they pertain to rabies certificates. (A.9613, Magee) (Chapter 86 of the Laws of 2006)

   3. Establishing Income Guidelines for NYC’s Animal Population Control Program

      This law provides the Department of Agriculture and Markets with one year to establish the low-income portion of New York City’s Animal Population Control Program, consistent with the effective date for the rest of New York State. (A.9998, Grannis) (Chapter 69 of the Laws of 2006)

   4. Facilitating the Containment of Animal Disease Outbreaks

      This chapter expands the number of qualified persons available to the Department of Agriculture and Markets to impose quarantines on animals and premises in order to contain and eradicate outbreaks of disease. (A.11450-A, Magee) (Chapter 393 of the Laws of 2006)

   5. Authorizing a Tax Check-Off for the Animal Population Control Fund

      This bill would authorize a tax check-off for gifts and contributions to the Animal Population Control Fund, which provides low-cost spaying and neutering services to cat and dog owners. The measure would allow corporate and individual taxpayers to donate to this fund. (A.3651-A, Magee) (Passed Assembly)

   6. Licensing and Inspection of Pet Boarding Kennels and Grooming Establishments

      This bill would authorize the Department of Agriculture and Markets to license and inspect pet boarding kennels and grooming establishments in addition to pet dealers. (A.4253-C, Weprin) (Passed Assembly)

   7. Sanctioning Security for the Care of Abused Animals

      This bill would authorize district attorneys to bring a petition to require an owner to post security for the care of an abused animal on behalf of an impounding organization. It would also clarify that all such petitions may be filed at or anytime after an arraignment on animal abuse charges. (A.5421, Englebright) (Passed Assembly)

   8. Ensuring the Health and Well-Being of Pure-Bred Dogs

      This bill would better ensure the health and well-being of dogs in the care of certain pet dealers by expanding the Department of Agriculture and Markets’ regulatory authority to include large-scale breeders and other businesses exempted from existing State law within the current definition of "pet dealer." (A.10682-B, Paulin) (Passed Assembly)

   9. Notifying Dog Purchasers of Licensing Requirements

      This bill would increase compliance with existing dog licensing laws by requiring pet dealers to notify purchasers of dogs that any dog residing in New York State must be licensed, and that licenses can be obtained from the municipality in which the dog resides. (A.10929, Magee) (Passed Assembly)

   10. Establishing a Flat-Rate Spay/Neuter Reimbursement System

       This bill would ease the administrative burdens on both the Department of Agriculture and Markets and veterinarians participating in the New York State Animal Population Control Program by establishing a flat-rate veterinary reimbursement system for costs associated with spaying or neutering dogs and cats under the provisions of the program. (A.11584, Grannis) (Passed Assembly)

6. OTHER LEGISLATION

   1. Ensuring Pricing Accuracy

      This law provides statutory guidance for county weights and measures officials to ensure accurate pricing on items sold by retail stores. New York’s previous pricing law expired in 1991. (A.564-E, Magee) (Chapter 665 of the Laws of 2006)

   2. Optical Scanning

      This bill would authorize the Commissioner of Agriculture and Markets to inspect and test optical scanning devices and systems. The Agriculture and Markets law would be updated to include laser scanning equipment within the scope of weights and measures provisions. (A.162-A, Lafayette) (Passed Assembly)

   3. Notification Regarding the Country of Origin of Certain Foods

      This bill would inform consumers regarding the country of origin of certain foods, thereby allowing them the opportunity to purchase items raised and produced in the United States if they so choose. The effective date of a similar Federal law has been continuously postponed by Congress. (A.5785-B, Aubertine) (Passed Assembly)

   4. Labeling for Genetically-Engineered Seeds

      This bill would ensure informative labeling for all genetically-engineered seeds sold in New York, and authorize the Commissioner of Agriculture and Markets to promulgate rules and regulations as necessary. (A.8344-A, P. Rivera) (Passed Assembly)

   5. Increased State Aid for County Soil and Water Conservation Districts

      This bill would provide a mechanism through which county soil and water conservation districts could obtain additional State funding to meet increased responsibilities in certain program areas.

      The bill was vetoed by the governor due to the enactment of a similar measure in the final 2006-2007 budget agreement. (A.10332-C, Magee) (Veto Memo #382).

On August 14, 2006, the Assembly Agriculture Committee held a public roundtable in the Town of Riverhead, Suffolk County to discuss emerging issues facing agriculture on Long Island. The event, hosted by Chairman Magee and Assemblyman Marc Alessi, was well-attended and addressed a number of issues of import to nurseries, wineries and other agricultural operations. Topics included the impact of wildlife on crop production, farmland preservation, right to farm issues and residential development, housing needs for migrant farm workers and challenges related to the New York State Farm to School Program. The Chairman and staff took an additional day to tour local farms, businesses and research facilities, including the historic Corwin Duck Farm in Aqueboque, Half Hollow Nursery in Laurel, Harbes Farm Stand in Jamesport, Southold East Coast Oyster Company and the Cornell Cooperative Extension offices in Riverhead.

On October 25, 2006, Chairman Magee and program staff attended the annual Equine Industry Leaders Summit in Albany. Hosted by Agriculture and Markets Commissioner Patrick Brennan, the event focused on challenges facing our ever-evolving New York equine community. Attended by breeder’s associations, boarders, extension associates, veterinarians, policy makers and educators, the summit served as a forum to discuss challenges faced by the industry as a whole, including liability, horse slaughter, rescue and retirement, breeding practices, and veterinary care.

On November 28, 2006, the Assembly Agriculture Committee joined the Assembly Task Force on Food, Farm and Nutrition Policy to conduct a roundtable on live poultry markets in New York City. The meeting brought Federal, State and City agencies together to discuss existing concerns about the regulation of these markets, identify potential issues that may arise in the future, and determine whether these items can be addressed in a more comprehensive, uniform fashion in the metropolitan area. The Committee found that despite an admittedly complex system of oversight, these markets are closely and responsibly monitored by the Department of Agriculture and Markets’ Division of Animal Industry to ensure public safety. Questions remain, however, as to the application of State sanitary laws and federal humane slaughter laws upon red-meat animals allowed at such business under federal exemptions.

On December 8, 2006, the Assembly Agriculture Committee held a public hearing in Albany to learn how the Department of Agriculture and Markets implemented agricultural and other programs authorized by the Legislature in the 2006-2007 budget as well as through new laws enacted during the previous calendar year. The Committee heard testimony regarding food safety, farmland viability and protection, wine industry promotion, retail pricing accuracy, animal welfare, pet dealer regulation, ethanol and biodiesel production, animal feed inspections, and low milk prices. These issues represent the diverse policy areas overseen by the Department and highlight the importance of ensuring that agency services are delivered to farms and other businesses in a timely and responsible manner.

The continued success of New York State farmers is vital from both an economic and environmental perspective. Since a healthy agriculture industry means jobs for New York residents, the Assembly Agriculture Committee remains dedicated to developing a more integrated and innovative approach to land preservation and stewardship, marketing and regulatory oversight to ensure the prosperity of our farms in the 21st Century and improve the overall economic health of our rural communities.

$24.7 Million Allocated for Agricultural Initiatives

This year the Assembly helped to secure $173 million for the Department of Agriculture and Markets, including $24.7 million in aid to localities to keep successful programs strong and fund several new initiatives. Funding was provided for the following:

• Agricultural Economic Development ("Grow NY")
  $1,235,000

• Cornell Agriculture in the Classroom
  $120,000

• Cornell Apiary Inspection Program
  $200,000

• Cornell Apiary Research Program
  $85,000

• Cornell Geneva Experimental Station
  $500,000

• Cornell Onion Research Program
  $100,000

• Cornell Johnes Disease Program
  $300,000

• Cornell Seed Inspection Program
  $200,000

• Cornell Veterinary Diagnostic Laboratory
  $1,945,000

• New York Cattle Health Assurance Program
  $450,000

• New York State Integrated Pest Management
  $1,000,000

• Farm Family Assistance (New York Farm Net)
  $500,000

• Future Farmers of America
  $135,000

• Integrated Pest Management Grape Entomologist (Fredonia)
  $47,000

• New York State Farm Viability Institute
  $5,000,000

• County Fairs
  $453,000

• New York State Apple Growers Association
  $550,000

• Cornell Association of Agricultural Educators
  $40,000

• Cornell Northern New York Agricultural Development
  $400,000

• New York State Marine Resources Council
  $100,000

• Cornell Rabies Program
  $600,000

• New York State Avian Disease Program
  $315,000

• New York State Golden Nematode Program
  $51,000

• New York State Migrant Child Care
  $4,596,000

• New York State Quality Milk Promotion Program
  $1,084,000

• New York State Wine and Grape Foundation
  $1,000,000

• New York State Wine and Grape Marketing and Promotion
  $2,000,000

• New York State Turfgrass Association Environmental Stewardship Fund
  $175,000

• New York Center for Agricultural Medicine and Health Tractor Rollover Protection Program
  $200,000

• Cornell Hudson Valley Fruit Laboratory
  $85,000

• New York State Agritourism
  $1,000,000

• Cornell Biological Field Station
  $200,000

• New York State Maple Producers Association
  $100,000

$116 Million Allocated for Agricultural Capital Projects

In addition to Departmental funding, the Assembly provided $116 million in capital projects dollars for various agriculture-related projects across the State. Funding was included for the following:

• New York State Food Laboratory
  $40,000,000

• Cornell’s Veterinary Diagnostic Laboratory
  $50,000,000

• County Fairs
  $3,000,000

• Cornell Agricultural Technology Park
  $1,000,000

• Hunt’s Point Cooperative Market
  $2,000,000

• Pilot Cellulosic Ethanol Refinery
  $20,000,000

$37 Million in Environmental Protection Fund Allocated for Agriculture-Related Projects

The Assembly secured a record $37 million in Environmental Protection Fund dollars for initiatives essential to ensure agriculture remains one of New York’s most important and environmentally-responsible industries. Funding was included for the following:

• Agricultural and Farmland Protection
  $23,000,000

• Agricultural Non-Point Source Pollution Abatement
  $11,003,000

• Soil and Water Conservation Districts
  $3,000,000

In this past legislative session, many bills were signed into law to protect and enhance New York State’s valuable agricultural industries, from producer to consumer. The Committee will focus much of its efforts on continuing to expand marketing opportunities for New York farmers and ensuring the viability of New York agriculture in the 21st century. Pending issues include:

• promoting statewide distribution and marketing for New York growers and processors;

• keeping viable agricultural lands in production agriculture;

• strengthening dog licensing and pet dealer laws; and

• food safety.

Other issues facing the Assembly Agriculture Committee include consideration of proposals to better promote New York-grown products, accommodate retired racehorses, regulate pet boarding and grooming facilities, assist not-for-profit organizations in the preservation of farmland and increase support for Cornell’s Geneva Experiment Station, which is vital to the development of innovative agricultural practices in New York State.

The Committee will examine these and other issues and will formulate possible legislative solutions, seeking input from all sectors of the agricultural community and the public.

APPENDIX A

2006 Summary of Action on All Bills Referred to
the Assembly Committee on Agriculture

CHAPTERS OF 2006

2006 Bills Passed by the Assembly

2006 Bills Vetoed by the Governor