Agriculture has always been an integral part of North Carolina’s history and culture and though its financial impact has lessened, it remains one of the largest sectors of our economy.
In the General Assembly, we constantly look for ideas to make things better for our farms and farm businesses and this year was no different. We made changes that will cut taxes and invested in our agricultural centers. We also agreed to study some issues of importance to agribusiness and hope the studies will help us come up with better ways of doing business.
Thank you as always for your support. Please let me know if I can help you in any way.
Taxes
We adopted provisions this past session to phase-out the sales tax on electricity, excise tax on piped natural gas, and privilege tax on other fuels used by manufacturers and farmers. The estimated savings from this change are $14 million this fiscal year, increasing to $42 million by the third year. Also, a new law (HB 487) now exempts farmers from the sales and use tax on baler twine. Farmers are already exempt from sales and use taxes on fertilizer, mulch, seeds, farm machinery and fuels other than electricity.
Vehicles
We passed a law (SB 738) to exempt vehicles used to spread seed, fertilizer, or other agricultural products from motor vehicle registration requirements. The law also applies to vehicles used to transport fertilizer as long as the vehicle cannot travel at over 35 miles per hour and is not operated outside of a 50-mile radius of the supply source.
Agricultural Fairs
State law now limits civil liability for fair workers dealing with agritourism activities. Agritourism professionals will not be held liable for the injury or death of participants unless they are negligent or do not warn participants of the inherent dangers associated with the activity of animals. The law (HB 590) also adds some licensed agricultural fairs and other animal exhibitions to the list of approved agritourism activities. These activities may be on a farm or ranch for the general public and may be educational, recreational or for entertainment purposes.
Hog Lagoons
A new law allows existing hog waste lagoons to continue to operate but bans the construction of new ones. Hog lagoons became an environmental concern in the past decade as the number of swine farms grew. The state has had a moratorium on new lagoons for the past 10 years, but replacing them with new, cleaner technology is expensive. The bill (SB 1465) offers a $2 million a year cost-sharing program to help defray the costs of replacing the pits with more environmentally friendly systems. The new systems could produce useful by-products such as compost or methane gas that can help generate electricity. The law includes a provision that allows up to 50 swine farms to join a pilot program that will allow farmers to sell methane gas to power companies. This way we can protect farmers’ investments and livelihoods while also keeping our water and soil clean.
Studies
The Performance Evaluation Division of the General Assembly will conduct a study on the structure and management practices of the agricultural research stations and research farms owned by North Carolina State University or the Department of Agriculture and Consumer Services. The division will study the efficiency of the research stations and farms and determine if it would be better to consolidate or transfer them to another state department.
We set aside $500,000 to study the equine industry in North Carolina. The Agricultural Advancement Consortium will conduct the study. The study will also focus on maximizing economic opportunities in the equine industry in North Carolina.
Budget
My colleagues and I set aside $5 million for the Western Agricultural Center. Of this money, $3 million will be used to build a 12,000-square-foot Arts and Crafts Building. The remaining $2 million will be used to develop a 40,000-square-foot Livestock Show area.
We also set aside $3 million to build a horse barn at the Senator Bob Martin Eastern Agricultural Center.
Legislators gave the Agricultural Development and Farmland Preservation Trust Fund $8 million. These funds will be used to prevent the loss of farmlands and protect our natural resources and environments.
Biofuels Center
This session we created the Biofuels Center of North Carolina to help implement our Strategic Plan for Biofuels Leadership. This plan and the Biofuels Center will encourage research and identify new crops that can be converted into biofuel. It will also encourage the development of organic raw materials in rural areas and help us get federal funding for our biofuels programs. We set aside $5 million to get the program moving. We are confident that this program will help create new green businesses and train people to work in those fields.
Food and Drug Protection
The General Assembly has appropriated $400,000 to buy laboratory equipment to manage food safety and security issues.
We also set aside $269,000 to replace federal funding lost from the USDA Food Safety aid Inspection Services.
Legislators also appropriated $50,000 to replace 52 laptop computers used in the federal FAIM program for meat inspectors. The federal government will match these funds at 50 percent.
Marketing
We set aside $250,000 for agriculture marketing initiatives. Some of these programs help low-income farmers who market their products directly to consumers to enroll in the federal Food and Nutrition Service Food Stamp Program at the farmers’ markets. We will use $50,000 of the money to promote agriculture festivals in small communities.
Please remember that you can visit the General Assembly’s website to look up bills, view lawmaker biographies and access other information.
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As I’ve said many times before, I hope you will continue to let me know how you feel about the issues that are being debated by the North Carolina Legislature and the challenges you and your family are facing each day.
By working together, we can make Northampton, Vance and Warren Counties and all regions of North Carolina a better place to live, work and raise a family.