Relates to custom farm operators

◆ The sponsor's argument

Why Pamela Helming says this is needed

Agriculture remains a critical part of New York's economy and rural communities. New York is home to more than 33,000 farms, the vast major- ity of which are family owned and operated. Agriculture and related industries contribute billions of dollars annually to the state's econo- my and remain essential to the economic stability of many rural communi- ties. At the same time, many farms face increasing financial pressure from rising equipment, labor, fuel, and operating costs. Small and mid-sized family farms are especially impacted because they often cannot afford to purchase and maintain the highly specialized machinery required for modem agricultural production, where equipment costs can reach hundreds of thousands of dollars. Custom farm operators help fill that gap. Custom operators provide services including tilling, planting, spraying, and harvesting using their own equipment and labor. Their services are often critical during narrow planting and harvesting windows that directly impact crop quality, yields, and farm profitability. By giving farms access to advanced machinery and specialized expertise without the full cost of ownership, custom operators help improve efficiency, increase productivity, reduce waste, and support the long-term viability of family farms across New York. New York currently offers agricultural tax credits, including the refundable Investment Tax Credit (ITC) and the Farm Workforce Retention Credit, to support agricultural operations and strengthen the state's farming economy. However, current law does not clearly recognize custom farm operators as eligible participants, despite the essential role they play in agricultural production and the fact that many farms rely on their services every growing season. Other states have similarly recognized the important role custom farming services play in modem agriculture through tax exemptions, agricultural service classifications, and other statutory provisions supporting custom operators and contract agricultural services. For example, Wash- ington State provides tax exemptions for custom farming services includ- ing planting, cultivating, and harvesting operations performed under contracts using specialized agricultural machinery. This bill reflects similar recognition that custom farm operators are an essential part of today's agricultural economy and should be treated as such under our state's agricultural tax credit programs. By clarifying eligibility in statute, this legislation strengthens support for New York agriculture, helps preserve family farms, supports rural economies, and ensures farm- ers continue to have access to the specialized services necessary to maintain efficient and sustainable operations.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.