Agriculture in Chautauqua County: A Discussion Paper

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1 Agriculture in Chautauqua County: A Discussion Paper March 25, 2009 Virginia E. Carlberg Cornell Cooperative Extension of Chautauqua County Frank W. Bratt Agricultural Center 3542 Turner Rd. Jamestown, NY (716) x 202

2 Executive Summary Agriculture is important to a region s overall economy, but also has far-reaching benefits through the conservation of open space, the creation of jobs, and the preservation of rural character. Chautauqua County is an agricultural county, ranking 1 st in the State for number of farms and 5 th in the State in total number of acres in farming 1. The Census of Agriculture (conducted every five years) looks at land ownership and use, owner/operator characteristics, income and expenditures, and production practices. The 2007 Census showed that the number of farms in the United States is increasing slightly (4%) after an enduring downward trend. Nearly 300,000 new farms have begun operation since the 2002 census. These new farms tend to have fewer acres, lower sales, operators who work off-farm, and a more greatly diversified production. The 2007 census also shows that there is a trend toward more small and very large farms, with fewer mid-size operations. Unfortunately, Chautauqua County has continued to see a decline in number of farms each year (down 4% from 2002 to 2007). Chautauqua County has the highest number of farms in New York State, but the farms are small in size with the majority of farms reporting under $20,000 in sales and an average net cash farm income of $26,158 (see attached document). This data reveals that farms in Chautauqua County are small businesses that, like other small businesses, require a nurturing environment and sufficient support from other local businesses, financial institutions, and government. The fostering of new and fledgling small farms will be equally important in the future. Background The dairy industry in Chautauqua County ranks first in sales and is valued at about 70 million dollars, followed by fruits, tree nuts, and berries which are valued at $41 million and cattle and calves which are valued at almost $10 million (see attachment). Chautauqua County ranks first in grape acreage in New York State, and third in sales. Nearly 20,000 acres of grapes had a total economic impact of $141 million in Value added products are processed locally and help support 659 jobs. Local wineries continue to grow, attracting 24,500 wine-related tourist visits. The cross-section of agricultural industries is fairly apparent as you drive through rural areas throughout the County. It has been generally recognized that Dairy and Grapes rule the agricultural roost in Chautauqua County, but there are many diversified livestock, vegetable, and crop farms that are important to both our local economy and our overall rural character. The production and marketing of commodity products has become increasingly more difficult in the past 25 years due to the broadening of product offerings as well as an opening of the global market. As a result, many external factors affect the price farmers receive for their products. The dairy and livestock industries have been especially hard hit with massive fluxes in prices which has resulted in the loss of farms that were unable to compete in the current economic environment. Besides a fluctuating commodity market, farms are also faced with numerous issues, some of which are listed and explained below Census of Agriculture, USDA 2 Compiled by the Cornell Cooperative Extension Agricultural Program Committee, which consists of committee members from across the major agricultural sectors

3 Issues Affecting Agriculture in Chautauqua County Environmental and Regulatory Concerns: Farms in the United States above 200 cows are labeled as a Concentrated Animal Feeding Operation (CAFO). These farms are subject to scrutiny by the U.S. Environmental Protection Agency (EPA) and fall under regulations that protect water quality. There are 308 dairy farms in Chautauqua County, 13 of which are considered CAFO farms. The issue is that 200 cow dairies are treated the same as 2,000 cow dairies, when there are significant differences in how these farms operate. The regulations are often difficult and/or costly to meet. Property Taxes: Farmers often pay higher real estate taxes due to ownership of large amounts assets in the form of acreage and buildings. Chautauqua County ranks in the top ten for median property taxes as a percentage of home value, indicating that Chautauqua County farmers pay higher taxes than many other counties across the United States 3. Protection of Property Owner s Rights: Farms are excellent land resources for windmills and gas wells, but towns, villages, and neighbors often oppose the implementation of these because of noise, environmental, and visibility concerns. Labor supply: Agriculture in Chautauqua County employs 3,347 people annually 4, but consistent labor is often difficult to find. Skilled labor is especially hard to attain, and once found, a good employee is hard to keep since farms often cannot offer the type of pay and benefits other businesses can. Insurance costs: Insurance usually tops the list of difficult issues for small businesses. When farms employ labor, it is often a struggle to provide health insurance for their employees. Farm families require their own health and life insurance, and will also take out other types of insurance such as crop and liability insurance. Cost of electricity and fuel: New York and California have the highest gasoline prices in the U.S. New York State also places high state, county, and local taxes on fuel. Farms are large consumers of fuel, which is needed to operate heavy machinery and equipment. Although most taxes on fuel are waived for farmers, vehicles that are not exempt (trucking for example) continues to represent a significant cost. Young people: The average age of U.S. farm operators increased from 55.3 in 2002 to 57.1 in The number of operators 75 years and older grew by 20 percent from 2002, while the number of operators under 25 years of age decreased 30 percent. It is increasingly difficult for young people to start a farm due to escalating land prices, higher input costs, large investments for starting up, and a struggling economy. Additionally, there is a stereotype that farmers are not successful, making young people feel a lot of pressure to pursue more prestigious careers in big cities. The lack of education on careers in agriculture in high schools may also take some of the blame American Community Survey Census of Agriculture - 3 -

4 Public Education: Some farmers face uncertain and strained relationships with their communities, while other communities are supportive and proud of their agricultural heritage. Although Chautauqua County has a mixture of both types of communities, it is increasingly apparent that there is a large disconnect between the public and farms. Greater efforts to educate the public about agriculture and their local food supply need to be taken to ensure that farms are understood and treated fairly. Opportunities and Strengths Employment in Agriculture: There is a huge opportunity for employment in full-time, part-time, and temporary positions. High school and college students will find readily available jobs during weekends and summers. Additionally, many people are becoming aware of the benefits of owning a farm: being your own boss, working outdoors and/or with animals, being stewards of the land, and having flexible family time. Agriculture and the Economy: Agriculture is considered an industry exporter. More products (in the form of agricultural commodities) leave our county than come in. For example, about $70,000,000 of milk and milk products and about $41,000,000 in grape and grape products leave Chautauqua County to be sold on shelves across the Northeast. Many of the inputs and materials needed to produce these products are purchased locally within the County. Agribusinesses and the Economy: Agriculture relies heavily on the Agribusiness support industries (tractor and machinery dealerships, hardware, animal feeds, etc.). Without these key businesses, farms would have to source materials from further locations, adding cost; in the case of agribusiness services, the lack of such would prevent many farms from operating profitably. Renewable Resources: Approximately 20,000 acres in Chautauqua County currently grow field corn crops, some of which can be used for ethanol production. Receiving greater hype today are biofuels from products that do not compete with our food supply, such as woody plants like willow. Farmers own the acreage needed to support the growing biofuels industry. Farmers also own much of the prime acreage for windmill site locations. A large opportunity exists in Chautauqua County because of its rural nature and because of its proximity to cities (Buffalo, Erie, and Cleveland) in need of renewable energy. Agritourism: Chautauqua County is well-known as a tourist destination for numerous reasons. One growing reason for out-of-towners to visit the County is the natural beauty and heritage our forests, hills, towns and villages provide us. Resources such as hiking and biking trails, scenic driving routes, and hunting and wildlife areas can be attributed to agriculture. The Lake Erie Wine Trail spanning across Western Pennsylvania and New York includes 15 wineries along a 40-mile stretch, and is a growing attraction for tourists. Chautauqua County also offers tourists and locals other agricultural activities such as u-pick fruits and vegetables, corn mazes, and horseback riding. Some of these activities are tourist season extenders, such as farm fall festivities. Direct Market and Value-Added Agricultural Products: Another opportunity for agriculture in Chautauqua County is direct market sales and the manufacturing - 4 -

5 of value-added agricultural products. Both locals and tourists appreciate and will purchase hand-crafted foods such as wine, jams, sauces, maple syrup and maple products, and farmstead dairy products (raw milk, cheese, goat milk fudge, etc.). Many of these products are sold at road-side farm stands, local grocery stores, and farmers markets. Suggestions and Solutions Examine the possibility of harnessing our natural fuels: As mentioned above, farms are sources of renewable and natural fuels. Livestock farms produce methane, which can be harvested through methane digesters, and turned into electricity. County- and State-level funding for methane digesters for individual farms may be opportunities to bolster this type of energy production. Windmill site locations are currently being scouted across Chautauqua County and further research should be supported. Other areas for opportunity would be biofuels, whether ethanol is produced from corn or from woody plant materials. Public outreach through educational activities with schools: Educational programs at the school level would benefit agriculture by increasing awareness of agriculture. There are thousands of careers that are supported by agriculture, from production, harvest, and transport, to processing, marketing and retail. Public outreach through agricultural events: Support for agricultural festivals, such as the annual wine and grape festivals, should be examined. Festivals give a community a sense of belonging and pride, as well as project an image of uniqueness. These festivals increase awareness of agriculture and can be used as an educational tool. Labor education and training: Training programs on specific agricultural job techniques are greatly needed, especially in fringe agricultural jobs like machinery and equipment repair. Additionally, many farms are well-managed but are lacking in financial management expertise. Affordable and practical business and financial management courses are needed to help educate small business owners about record-keeping, financial analysis, and smart financial decisionmaking. Open communication lines: Opening the lines of communication between agricultural and non-agricultural sectors has proven to lead to successful networking of resources and ideas. Promoting communication between agriculture and other sectors of our economy will also help to develop a mutual understanding. Consideration of co-sponsorship of events and seminars should be considered. Support new enterprises: There are many ways to help incubate and foster entrepreneurial endeavors at the county level. One way is to continue to develop resources such as the Jamestown Community College Small Business Development Center and Cornell Cooperative Extension of Chautauqua County. Agricultural businesses are similar to other small businesses, but often have different start-up requirements and sources of funding. Grow the agritourism market: County level support for businesses that are diversifying into agritourism, the creation of agricultural events and trails, and the development of our region as a rural escape from city living are all concepts to - 5 -

6 be considered. Chautauqua County is also proud of its Lake Erie Wine Trail. The wine trail is an economical and cultural strength of the County. Building on that success, The Concord Grape Heritage Association has obtained funding for a Concord Grape Discovery Center in Westfield, NY. The County has an opportunity to integrate its support of agritourism with the existing success of the grape industry. Foster value-added agricultural products: Many other counties in New York State have what are called community kitchens. These kitchens are open to area businesses who would like to try new recipes in a certified and inspected kitchen. Without a community kitchen, businesses must have their own kitchens inspected by Ag and Markets in order to sell products to the consumer. This puts a considerable restriction on value-added agricultural start-ups. Community kitchens can be started by any business or individual, but are not excellent moneymakers and may require support from grant sources

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