Extension Business Management Information for Fruit and Vegetable Farms in Eastern New York

News : Research You Can Use : Tool of the Week : Funding Opportunities : Upcoming Programs

In this issue: US House Ag Labor Working Group releases H2A policy recommendations. How produce farms in New York are adapting to increased labor costs. Sources for ag data from USDA Economic Research Service you can use for your next grant or business plan. USDA Rural Energy for America Program (REAP) is accepting applications as well as USDA FSA farm labor housing loans and updates to other grant programs. Upcoming business programs.  

New Federal Policy Recommendations for H2A

The Bi-Partisan House Committee on Agriculture, Agricultural Labor Working Group released its final report of policy recommendations to reform the H2A program in March 2024. Representative Nick Langworthy (NY-23) served on the committee. There were 15 proposals with unanimous support and 6 with majority support. Some of the recommendations that had unanimous support from the committee that would be likely to be of interest to NYS fruit and vegetable growers include: 

1. Allowing H2A employers to apply for staggered worker entry rather than requiring separate applications for each date of entry. 
2. Permanently waiving in-person Department of State interviews for returning H2A workers 
3. Adopting a de Minimus exemption from the AWER for work that is ancillary to the main contracted job duty (less than 25% of a worker's weekly hours). 
4. Granting year-round industries access to the H2A program 

 In addition, there were some proposals that had majority support that also could be of interest: 

1. An H2A pilot program to allow for workers to have visas for 3 continuous years at a single job site or location, with the workers having the ability to travel home for visits during that period. 
2. An exemption of the AEWR for small farms (gross cash farm income of less than $350,000) 
3. Allowing joint employment of H-2A workers (removing the restriction that they work no more than 35 hours per week for any one employer within a joint-employer relationship). 

“We hope the suite of policy recommendations in this final report can be a roadmap to legislative solutions that protect workers and ensure a fair work environment while addressing the agriculture labor crisis.” said Chairman Glenn Thompson and Ranking Member David Scott in a joint statement. 

Tips for Managing Labor Costs in 2024

Since we are on the topic of labor, two Cornell University Dyson School studies in 2023 looked at how fruit and vegetable farms are adapting to overtime and minimum wage requirements.  

The studies found that for most fruit and vegetable farmers the 60-hour threshold for overtime was not a barrier, although the NYS-required day of rest often resulted in some overtime paid to workers and was more of an issue for farms than overtime at 60. Many farms indicated that they continued employment as usual and just paid for any overtime hours worked. 

For farms that made changes, most tightened up their management of current labor performance and hours before reallocating labor to other tasks or crops that would contribute to the greatest profitability. Some farms invested in machinery or equipment to boost labor productivity or simply eliminated certain production tasks that were nonessential. Multiple specialty crop growers responded that they eliminated less profitable crops or left them in the field, and that they used “hard stops” to work to avoid paying any overtime. In other words, work stopped regardless of if it was complete.  

Growers indicated that they would consider raising prices to offset costs of increased wages but questioned if the market would bear this strategy as a long-term solution. Some growers indicated that operations would remain mostly unchanged as wages increased. Few indicated that they would stop growing produce. Several also suggested that capital investments would be delayed as more farm income was channeled to pay higher labor costs. 

Sources:  



Stup, R, E. Higgins, J. Karszes, B. Rickard and C. Wolf (2023) How New York Farmers Adapted to New Farm Labor Overtime Requirements. EB 2023-02. Dyson School, Cornell University. 

Severson, R, K. Park and M. Gomez (2023) Examination of Impact of Changes of Minimum Wage and Overtime Thresholds to New York State Berry Farms. EB 2023-03 Dyson School, Cornell University. 

ERS Data Tools

Sometimes when you are writing a grant proposal, a business plan or advocating for your farm you need data. USDA Economic Research Service’s website is a good place to start. USDA ERS - Data Products. If you need help interpreting or finding data for a project let me know. 

Here is an example of data you can find on this site. It's not just farm owners that are getting old, the average age of farm laborers, especially foreign-born farm workers, is also increasing. Here is a chart, available from USDA ERS, that you can download. 

Rural Energy for America Program (REAP)

The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing. There are 2 application periods in 2024: April 1-June 30, 2024, and July 1 - September 30, 2024. There are two types of projects, renewable energy systems and energy efficiency improvements.

Funds (loans and grants ranging from $2,500 to $1million) may be used for the purchase and installation of renewable energy systems, such as:

• Biomass (for example: biodiesel and ethanol, anaerobic digesters, and solid fuels).

• Geothermal for electric generation or direct use.

• Small and large wind generation.

• Small and large solar generation.

Funds (loans and grants ranging from $1,500 to $500,000) may also be used for the purchase, installation and construction of energy efficiency improvements, such as:

• High efficiency heating, ventilation and air conditioning systems (HVAC).

• Insulation.

• Lighting.

• Cooling or refrigeration units.

• Doors and windows.

• Electric, solar or gravity pumps for sprinkler pivots.

• Switching from a diesel to electric irrigation motor.

• Replacement of energy-inefficient equipment.

Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.

What type of funding is available?

• Loan guarantees (80%) on loans up to 75 percent of total eligible project costs.

• Grants for up to 50 percent of total eligible project costs.

• Combined grant and loan guarantee funding up to 75% of total eligible project costs.



Contact your state USDA RD energy coordinator for more information. 

USDA On-Farm Labor Housing Loans

This program provides affordable financing (1% 30-year loans) to develop or rehabilitate affordable rental housing for very-low to moderate income domestic, migrant, and seasonal farm laborers. It also provides funding used to increase the supply of affordable housing for farm labor; and the ability of the farmer to provide affordable, decent, sage and sanitary housing for farm workers. The program is currently open for applications and will accept applications on a first-come, first-served basis until funds are depleted. There is no loan minimum, the maximum loan is the allowable total development cost.  Housing for H2A workers is allowable under this grant (this is a change from the past).

(still) COMING SOON!!!

Resilient Food Systems Infrastructure Program

This program is still not taking applications but check the website for updated details. They have provided information on what you will need to have in hand to be ready to apply.

1: Get a Unique Entity ID (UEI).  If you are awarded a grant, you must obtain a UEI in SAM.gov before being issued a subaward. This process can take multiple weeks in some instances, so it is important to start the process now. For information on how to register with SAM.gov and get a UEI number, visit https://sam.gov/content/entity-registration. It is free to register in SAM.gov.

2. Get your project shovel ready! RFSI applicants will need to have shovel-ready projects because of the short-timeline of the grant (projects must be completed by February 2027.) Make sure you know if you will need any local permits for your project.

3. Explore options for matching funds. Here are some options. NYS Community Development Financial Institutions; NYS Small Business Credit Initiative website; NYS Job Development Authority Agriculture Loan Fund web page

New York State Grown and Certified Infrastructure and Technology Grant

Still not open for applications but here is where you can sign up to be notified when they are.

Good Manufacturing Practices (GMPs) Virtual Training, Thursday, April 25, 2024 6:30-8:30PM (online). Cornell Cooperative Extension Orange County is proud to conduct a virtual workshop on Good Manufacturing Practices (GMP) to help growers and manufacturing farms meet globally recognized standards. GMPs ensure manufacturing processes meet the highest quality and safety standards, some topics we'll cover include the essentials of GMPs, why it's important to comply with GMPs, and what happens if products do not meet GMP standards. If your farm or manufacturing is going for certification, this training will demonstrate your commitment to continuous improvement, customer satisfaction, and regulatory compliance.

2024 Agritourism Webinar Series: second Tuesday of every month from Noon - 1PM (online). Join CCE Extension educators for a series of lunchtime webinars on agritourism topics! This series is free, and you can register for one or more of the webinars.

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