senate Bill S4520A

2013-2014 Legislative Session

Relates to creating a small farm modernization fund program and a small farm modernization fund

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 28, 2014 print number 4520a
amend (t) and recommit to finance
Jan 08, 2014 referred to finance
Apr 08, 2013 referred to finance

Bill Amendments

Original
A (Active)
Original
A (Active)

S4520 - Bill Details

See Assembly Version of this Bill:
A7037A
Current Committee:
Law Section:
Agriculture and Markets Law
Laws Affected:
Amd §16, Ag & Mkts L; add §16-x, UDC Act

S4520 - Bill Texts

view summary

Relates to creating a small farm modernization fund program and a small farm modernization fund.

view sponsor memo
BILL NUMBER:S4520

TITLE OF BILL: An act to amend the state finance law, in relation to
a small farm modernization revolving loan fund

SUMMARY OF SPECIFIC PROVISIONS::

Section 1 Amends the State Finance Law by adding a new section 97-u,
creating the "small farm modernization revolving loan fund," under the
joint custody of the State Comptroller and the Commissioner of the
Department of Taxation and Finance. Funding will be through
appropriation not to exceed $5 million.

Loans of up to $25,000 are to be made from the fund to small farmer
owners, upon the audit and warrant of the State Comptroller, for the
sole purpose of small farm modernization.The farm owner must provide a
written statement from the Department of Agriculture and Markets
verifying that such farm constitutes a small farm, and reasonable
written assurances of repayment that is satisfactory to the
comptroller. Any loans provided from the fund shall bear interest at
a below-market rate and repayment of such loan may be prorated over
the term of the expected or renewal contract, provided the term of the
loan does not exceed three years.

Within 90 days of the law's enactment, comptroller will promulgate
rules and regulations for the operation of the fund. Such regulations
must include, but not be limited to, the procedure and any necessary
information that small farm owners need to submit in connection with
an application for a loan from the small farm revolving loan fund; a
schedule for reviewing such applications, not to exceed thirty days,
and notification to an applicant of approval or disapproval of such
application, and any other requirements deemed necessary by the state
comptroller.

Section 2 establishes an effective date of 180 days after becoming
law.

JUSTIFICATION:: After a 70-year drop in numbers, small farms are
beginning to make a comeback. For decades, the number of farmers has
been shrinking as a share of the population, but the last Agricultural
Census in 2007 showed a 4 percent increase in the number of farms. It
is the first increase since 1920, and in many cases, young people and
college graduates are joining in the return to the land. Behind this
trend to a large degree is the appeal of locally grown and specialty
produce, filling a niche that larger farms geared to national and
international markets have left open for exploitation.

But while there has been an increase in promoting locally grown food,
New York's small farmers still struggle to get a foothold in this
promising new market.While start-up costs for the smallest operations
can still be daunting, the difference between success and failure can
be a matter of modernization that leads to greater productivity. The
Small Farm Modernization Revolving Loan Fund will feature low interest
loans of up to $25,000 to help small farms modernize, purchase new
equipment, or expand the amount of crops planted.


EXISTING LAW:: None.

PRIOR LEGISLATIVE HISTORY:: New Bill.

FISCAL IMPLICATIONS:: $5 million.

EFFECTIVE DATE:: 180 days after becoming law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4520

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 8, 2013
                               ___________

Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law,  in  relation  to  a  small  farm
  modernization revolving loan fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The state finance law is amended by adding  a  new  section
97-u to read as follows:
  S  97-U.  SMALL  FARM  MODERNIZATION  REVOLVING LOAN FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  COMPTROLLER  AND  THE
COMMISSIONER  OF  TAXATION  AND  FINANCE A FUND TO BE KNOWN AS THE SMALL
FARM MODERNIZATION REVOLVING LOAN  FUND.  SUCH  FUND  SHALL  CONSIST  OF
MONEYS  MADE  AVAILABLE  PURSUANT  TO  APPROPRIATION  NOT TO EXCEED FIVE
MILLION DOLLARS AND ANY OTHER SOURCES IN ORDER TO  PROVIDE  SUPPORT  FOR
MODERNIZATION OF SMALL FARMS.
  2. MONEYS OF THE FUND MAY BE EXPENDED IN ACCORDANCE WITH THIS SECTION.
MONEYS  SHALL  BE  PAID  OUT OF THE FUND ON THE AUDIT AND WARRANT OF THE
STATE COMPTROLLER PURSUANT TO THIS SECTION.
  3. THE STATE COMPTROLLER IS AUTHORIZED TO PROVIDE LOANS FROM THIS FUND
TO ANY SMALL FARM OWNER IN RECEIPT  OF  A  WRITTEN  STATEMENT  FROM  THE
DEPARTMENT OF AGRICULTURE AND MARKETS INDICATING THAT SUCH PERSON'S FARM
CONSTITUTES  A SMALL FARM. THE STATE COMPTROLLER MAY PROVIDE SUCH A LOAN
TO A SMALL FARM OWNER UPON RECEIPT  OF  A  WRITTEN  AGREEMENT  PROVIDING
REASONABLE  ASSURANCES  OF  REPAYMENT  THAT IS SATISFACTORY TO THE COMP-
TROLLER. SUCH LOAN SHALL BEAR INTEREST AT A BELOW-MARKET RATE AND REPAY-
MENT OF SUCH LOAN MAY BE PRORATED OVER  THE  TERM  OF  THE  EXPECTED  OR
RENEWAL  CONTRACT,  PROVIDED  THE TERM OF THE LOAN DOES NOT EXCEED THREE
YEARS. THE AMOUNT OF EACH SUCH LOAN SHALL NOT EXCEED  TWENTY-FIVE  THOU-
SAND DOLLARS.
  4.  THE STATE COMPTROLLER SHALL ONLY MAKE LOANS AFTER FINDING THAT THE
SMALL FARM OWNER WILL USE THE  FUNDS  EXCLUSIVELY  FOR  THE  PURPOSE  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09997-02-3

S. 4520                             2

MODERNIZING  HIS OR HER FARM. THE COMPTROLLER SHALL ESTABLISH ACCEPTABLE
FORMS OF PROOF THAT A SMALL FARM OWNER MAY  SUBMIT  TO  BE  ELIGIBLE  TO
RECEIVE A LOAN PURSUANT TO THIS SECTION.
  5. THE STATE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN
NINETY  DAYS  OF THE EFFECTIVE DATE OF THIS SECTION FOR THE OPERATION OF
THE SMALL FARM MODERNIZATION REVOLVING LOAN FUND  WHICH  SHALL  INCLUDE,
BUT  NOT BE LIMITED TO, THE PROCEDURE AND ANY NECESSARY INFORMATION THAT
SMALL FARM OWNERS NEED TO SUBMIT IN CONNECTION WITH AN APPLICATION FOR A
LOAN FROM THE SMALL FARM MODERNIZATION REVOLVING LOAN FUND;  A  SCHEDULE
FOR  REVIEWING SUCH APPLICATIONS, NOT TO EXCEED THIRTY DAYS, AND NOTIFI-
CATION TO AN APPLICANT OF APPROVAL OR DISAPPROVAL OF  SUCH  APPLICATION,
AND ANY OTHER REQUIREMENTS DEEMED NECESSARY BY THE STATE COMPTROLLER.
  6.  ANY  SMALL FARM OWNER RECEIVING A LOAN FROM THE SMALL FARM MODERN-
IZATION REVOLVING LOAN FUND SHALL BE INELIGIBLE TO RECEIVE  INTEREST  OR
ADVANCE PAYMENTS FROM A STATE AGENCY.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

S4520A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7037A
Current Committee:
Law Section:
Agriculture and Markets Law
Laws Affected:
Amd §16, Ag & Mkts L; add §16-x, UDC Act

S4520A (ACTIVE) - Bill Texts

view summary

Relates to creating a small farm modernization fund program and a small farm modernization fund.

view sponsor memo
BILL NUMBER:S4520A

TITLE OF BILL: An act to amend the agriculture and markets law and
the New York state urban development corporation act, in relation to
creating a small farm modernization fund

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 Would amend the Agriculture and Markets Law by adding a new
subdivision 47, authorizing the Department to cooperate with the
Empire State Development Corporation to develop the "Small Farm
Modernization Fund" program to provide grants to farmers for the
purposes of modernizing their farm and farm practices. Small farms
would be defined as 150 acres or less.

Section 2 would amend the Urban Development Corporation Act to add a
new section 16-x to create the Small Farm Modernization Fund to make
grants to eligible applicants for modernizing their farm and farm
practices, including, but not limited to, infrastructure, equipment,
crops, animals and marketing of farm products. Such modernization may
also include updating and improving agricultural environmental
management, as defined in Article 11-A, practices, equipment and
infrastructure. The corporation would consult with the Department of
Agriculture and Markets in order to establish criteria governing the
award of grants including, but not limited to, farmers who produce a
product in the State, demonstrate innovative plans for modernizing
their farms and work farms of one hundred fifty acres or less. The
Corporation would not invest an amount in any single beneficiary that
exceeds twenty-five thousand dollars, subject to any exceptions to be
established by guidelines of the corporation.

JUSTIFICATION: After a 70-year drop in numbers, small farms are
beginning to make a comeback. For decades, the number of farmers has
been shrinking as a share of the population, but the last Agricultural
Census in 2007 showed a 4 percent increase in the number of farms. It
is the first increase since 1920, and in many cases, young people and
college graduates are joining in the return to.the land. Behind this
trend to a large degree is the appeal of locally grown and specialty
produce, filling a niche that larger farms geared to national and
international markets have left open for exploitation.

While there has been an increase in promoting locally grown food, New
York's small farmers still struggle to get a foothold in this
promising new market. While start-up costs for the smallest operations
can still be daunting, the difference between success and failure can
be a matter of modernization that leads to greater productivity. The
Small Farm Modernization Fund would feature grants of up to $25,000 to
help small farms modernize infrastructure, equipment, and practices or
add new animals or crops to the farm's production.

EXISTING LAW: None.

PRIOR LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: Subject to appropriation.


EFFECTIVE DATE: This act shall take effect on the first of April next
succeeding the date on which it shall have become a law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4520--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 8, 2013
                               ___________

Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance -- recommitted  to
  the  Committee  on Finance in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the agriculture and markets law and the New York state
  urban development corporation act, in relation  to  creating  a  small
  farm modernization fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 16 of the agriculture and markets law is amended by
adding a new subdivision 47 to read as follows:
  47. COOPERATE WITH THE EMPIRE STATE DEVELOPMENT CORPORATION TO DEVELOP
A SMALL FARM MODERNIZATION FUND PROGRAM TO PROVIDE GRANTS TO FARMERS FOR
THE PURPOSES OF MODERNIZING THEIR FARM AND  FARM  PRACTICES,  INCLUDING,
BUT  NOT  LIMITED  TO,  INFRASTRUCTURE,  EQUIPMENT,  CROPS,  ANIMALS AND
MARKETING OF FARM PRODUCTS. SUCH MODERNIZATION MAY ALSO INCLUDE UPDATING
AND IMPROVING AGRICULTURAL ENVIRONMENTAL MANAGEMENT, AS DEFINED IN ARTI-
CLE ELEVEN-A OF THIS CHAPTER, PRACTICES, EQUIPMENT  AND  INFRASTRUCTURE.
FARM  MODERNIZATION  IS  ESPECIALLY  IMPORTANT  FOR FARMS THAT ARE BEING
TRANSITIONED FROM LONG-TIME OWNERS TO NEW OWNERS AND BEGINNING  FARMERS.
FOR THE PURPOSES OF THIS PROGRAM THE TERM "SMALL FARM" SHALL MEAN A FARM
OF ONE HUNDRED FIFTY ACRES OR LESS.
  S  2.  Section  1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 16-x to read as follows:
  S 16-X. SMALL FARM MODERNIZATION FUND. 1. THE SMALL FARM MODERNIZATION
FUND IS HEREBY CREATED. THE PURPOSE OF THE SMALL FARM MODERNIZATION FUND
IS TO MAKE GRANTS TO ELIGIBLE APPLICANTS FOR MODERNIZING THEIR FARM  AND
FARM  PRACTICES,  INCLUDING,  BUT NOT LIMITED TO, INFRASTRUCTURE, EQUIP-
MENT, CROPS, ANIMALS, AND MARKETING OF FARM PRODUCTS. SUCH MODERNIZATION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09997-06-4

S. 4520--A                          2

MAY ALSO  INCLUDE  UPDATING  AND  IMPROVING  AGRICULTURAL  ENVIRONMENTAL
MANAGEMENT,  AS  DEFINED  IN  ARTICLE  ELEVEN-A  OF  THE AGRICULTURE AND
MARKETS LAW, PRACTICES, EQUIPMENT AND INFRASTRUCTURE. FARM MODERNIZATION
IS  ESPECIALLY  IMPORTANT  FOR  FARMS  THAT  ARE BEING TRANSITIONED FROM
LONG-TIME OWNERS TO NEW OWNERS AND BEGINNING FARMERS.
  2. THE CORPORATION SHALL CONSULT WITH THE  DEPARTMENT  OF  AGRICULTURE
AND  MARKETS  IN ORDER TO ESTABLISH SUCH CRITERIA GOVERNING THE AWARD OF
GRANTS AS AUTHORIZED BY  THIS  SECTION,  AS  THE  CORPORATION  AND  SUCH
DEPARTMENT  DEEM  NECESSARY.  SUCH  CRITERIA  SHALL  INCLUDE, BUT NOT BE
LIMITED TO:
  (A) FARMERS WHO WILL MATERIALLY AND SUBSTANTIALLY PARTICIPATE  IN  THE
PRODUCTION OF AN AGRICULTURAL PRODUCT WITHIN A REGION OF THE STATE;
  (B)  FARMERS  WHO  DEMONSTRATE  INNOVATIVE PLANS FOR MODERNIZING THEIR
FARMS THAT WOULD RESULT IN THE GROWTH OF BUSINESS WITHIN THE  STATE  AND
THE CONCOMITANT CREATION OF JOBS AND TAX REVENUES FOR THE STATE; AND
  (C) FARMS OF ONE HUNDRED FIFTY ACRES OR LESS.
  3. THE CORPORATION SHALL ESTABLISH A COMPETITIVE PROCESS FOR THE EVAL-
UATION  OF APPLICANTS FOR THE SMALL FARM MODERNIZATION FUND. WHEN AWARD-
ING FUNDS PURSUANT TO THIS SECTION, THE CORPORATION  SHALL  ENSURE  THAT
APPLICANTS  MEET THE CRITERIA AND REQUIREMENTS ESTABLISHED BY THE CORPO-
RATION PURSUANT TO THIS SECTION.
  4. THE SMALL FARM MODERNIZATION FUND SHALL NOT INVEST AN AMOUNT IN ANY
SINGLE BENEFICIARY THAT EXCEEDS TWENTY-FIVE THOUSAND DOLLARS, SUBJECT TO
ANY EXCEPTIONS TO BE ESTABLISHED BY GUIDELINES OF THE CORPORATION.
  5. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  THE  CORPO-
RATION  MAY  ESTABLISH  A PROGRAM FUND FOR PROGRAM USE AND PAY INTO SUCH
FUND ANY ELIGIBLE FUNDS AVAILABLE TO THE CORPORATION  FROM  ANY  SOURCE,
INCLUDING MONEYS APPROPRIATED BY THE STATE.
  6.  THE CORPORATION SHALL SUBMIT A REPORT ANNUALLY ON DECEMBER THIRTY-
FIRST TO THE DIRECTOR OF THE BUDGET,  THE  TEMPORARY  PRESIDENT  OF  THE
SENATE,  THE  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE
AND THE MINORITY LEADER OF THE ASSEMBLY DETAILING:
  (A) THE TOTAL AMOUNT OF FUNDS COMMITTED TO EACH APPLICANT;
  (B) THE LOCATION OF EACH APPLICANT; AND
  (C) SUCH OTHER INFORMATION AS THE CORPORATION DEEMS NECESSARY.
  7. THE CORPORATION IS HEREBY AUTHORIZED TO  ESTABLISH  GUIDELINES  FOR
THE  ADMINISTRATION OF THE PROGRAM, INCLUDING APPLICATION PROCEDURES AND
DISBURSEMENT TERMS, AND TO PROVIDE FOR THE REPAYMENT OF  FUNDS  RECEIVED
BY THE BENEFICIARY IF THE BENEFICIARY LEAVES NEW YORK STATE OR OTHERWISE
CEASES FARMING ACTIVITY WITHIN A PERIOD OF TIME TO BE ESTABLISHED BY THE
CORPORATION.
  S  3. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law;  provided,  however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date is authorized to be made and completed on or before such date.

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