With a $68 billion budget deficit in the upcoming fiscal year, California farmers are bracing for difficulties in every facet of the industry. The deficit is expected to include significant cutbacks in incentive programs that provide farmers with financial assistance to comply with regulations.
Roger Isom, President and CEO of the Western Agricultural Producers Association, said that California farmers face great restrictions regarding emissions, alternatives to burning, water use and conservation, among others. It is only feasible to continue operations with support from incentive programs.
Farmers have a lot of questions regarding what will be funded and how the ag industry will be supported through the deficit. “We’ve got to find new ways to stay ahead of the game,” Isom said. Of particular importance, the FARMER program to replace ag equipment has already been facing funding declines. Isom noted they fought to get $75 million for the program last year. This year could be even more challenging.
“It’s a very successful bang-for-your-buck program that benefits everybody, from the end user to the grower, to the manufacturer of equipment. It helps them sell equipment, which supports jobs,” Isom said of the incentives. More than that, the programs have a quantifiable impact on the environment, as well as the agricultural community.
With the anticipated $68 billion budget deficit, farmers are expecting lower funding levels for these types of incentives. Isom said that an additional factor in determining how much aid farmers receive in the upcoming year also depends on the awareness of legislators, particularly new ones.
“We have a lot of new faces and we’ve got a lot of educating to do to get this new lot of Budget Chairs to understand just how important [incentive programs] are, and how critical they are to the economic vitality of the state,” said Isom.
Contributing Author:
Lauren McEwen
AgNet West Intern