CNY farmers supporting legislation that can help them expand, create jobs
By: Jennifer Lee
Updated: July 16, 2012
Some farmers across Central New York are pushing for new legislation that will help lower taxes on small farms.
It's called the Growing Small Farms Act of 2011; a bill that will update the federal tax code to lower certain taxes on those small farms.
That is designed to allow some farmers in New York to use that extra income to create more jobs and expand their businesses.
"The milk prices have dropped considerably over the last year," explained Debbie Finn, a farmer in Holland Patent.
Finn says the drop in milk prices and the dry weather have been tough for many small farms across Central New York.
On top of that, farmers like Debbie have to worry about filing a Federal Unemployment Tax Return or FUTA if they pay cash wages of $20,000 or more to farm workers in any calendar quarter.
But, Congressman Richard Hanna is sponsoring the Growing Small Farms Act of 2012 that would update the federal tax code to lower those taxes on small farms.
"Were simply asking that its doubled with an escalator. It's not a fundamental change in anything. It's just an acknowledgement that inflation has happened over the years and for small farmers $20,000 is not that much for farmers so move it to $40,000 hopefully," said Congressman Hanna, (R)- 24th District.
The bill will increase the quarterly FUTA tax exemption from $20,000 to $40,000, allowing more small farmers to qualify for this tax benefit.
This will then provide relief to farmers who could use that income to expand their business or "possibly be able to hire where we might have been hesitant to do that. There is always a lot of work to do on farms," said Finn.
And although Debbie says her family farm is doing well, it is always a struggle.
"Our inputs for farming are very high right now. Gas prices being high, corn feed being high and input costs are significantly high and milk prices have been low," said Finn.
Congressman Hanna says the bill can help small farms remain open and productive. He hopes this piece of legislation can be passed by the end of this year.
