I_YFarmers_2017A 08/10/2017 09:01:25 AM Committee Summary

09:02 AM -- Call to Order and Committee Opening Remarks



Senator Sonnenberg called the meeting to order. The meeting agenda was distributed to the committee members (Attachment A). The committee members introduced themselves and made opening comments regarding the committee.



170810 AttachA.pdf



09:13 AM -- Overview of Bill Request Process



Yelana Love, Office of Legislative Legal Services, provided the committee with an overview of the bill request process for interim committees, including the applicable deadlines and bill drafting process. Finalized bill drafts will be considered at the committee's October 6 meeting.













09:19 AM -- Overview of the National Young Farmer Survey Results



Kate Greenberg, Western Program Director, National Young Farmers Coalition (NYFC), provided a brief summary of the National Young Farmer Survey. Ms. Greenberg discussed that the NYFC would be providing legislative recommendations to the committee during the presentation.



09:20 AM



Alexander Funk, Western Policy Program Manager, NYFC, provided a handout to the committee (Attachment B). Mr. Funk explained that the U.S. Department of Agriculture defines "beginning" farmers as an individual who has 10 years or less of experience. He highlighted that the definition does not include an age determinate. Mr. Funk said that there is no formal definition for "young" farmers, but typically is used to categorize farmers and ranchers who are under 35 years of age. Mr. Funk stated that nationally from 2007 and 2012 the average age of farmers has risen from 51 years of age to 58 years of age. He said that in Colorado, the average age of farmers is 59 years old. He discussed the issue of farmland transferring ownership in coming years due to many producers reaching retirement age. Mr. Funk discussed the declining number of young and beginning farmers entering the agriculture industry and how NYFC seeks to improve the participation of young and beginning farmers in the industry.



170810 AttachB.pdf



09:27 AM



Ms. Greenberg discussed the background of NYFC, which was formed in 2010, and explained that NYFC focuses on three areas: policy reform, network building, and business services. She said that there are four NYFC chapters of in Colorado. She explained that the chapters of NYFC recommend policies through working with farmers and ranchers, as well as chapter leaders. Ms. Greenberg discussed the a federal micro-loan program that the NYFC helped establish to provide $50,000 loans to young farmers with low interest rates.



09:32 AM



Mr. Funk provided an overview of the NYFC 2017 National Survey, which was completed with the assistance of George Washington University. He stated that the NYFC partnered with 94 other organizations to increase participation in the survey outside of the existing network of NYFC. Mr. Funk said that the goal of the survey was to provide a snapshot of young farmers and provide a demographic background. He referenced handouts provided to the committee (Attachments C and D) and discussed the demographic results of the survey. He explained that first generation farmers typically operate smaller acreages than established farmers. Mr. Funk stated that the survey showed that young farmers diversify their crops more than established farmers. In response to a question, Ms. Greenberg discussed the issue of farmer readiness and the need for business training. Mr. Funk explained that land access is the biggest obstacle for young and beginning farmers, and in western states, water access and availability is another significant obstacle for farmers. He further discussed issues related to land access, including affordability and ability to find appropriate land for the crop farmers wish to produce.



170810 AttachC.pdf170810 AttachD.pdf













09:44 AM



Mr. Funk discussed the path to land access for young and beginning farmers and explained that it is critical for young and beginning farmers to gain farming or ranching experience in order to gain access to land. Mr. Funk also discussed succession plans of established farmers and the need for established farmers to create succession plans and include young and beginning farmers in those plans. He also discussed the difficulty for young and beginning farmers to access capital in order to begin farming.



09:47 AM



Mr. Funk discussed policy recommendations from NYFC, which include: establishing a Beginning Farmer and Rancher Center at Colorado State University (CSU) to coordinate education and information services statewide for new farmers and ranchers and provide succession planning technical assistance; expanding the Innovative Industries Internship Grant Program to include agricultural industry internships; and establishing a beginning farmer and rancher student loan repayment program to encourage more students to enter agricultural professions and encourage rural development. Mr. Funk also recommended that the committee expand the beginning farmer and rancher tax credit to include the sale of land and agricultural assets and the creation of a state capital gains tax deferral or exclusion for farmland and agricultural assets sold to new and next generation farmers and ranchers.



09:52 AM



Mr. Funk and Ms. Greenberg responded to questions from the committee regarding the survey data, the Innovative Internship Grant Program, and additional obstacles to young and beginning farmers.



10:06 AM -- Experience as a Young and Beginning Farmer



Nate Weathers, representing Colorado Farm Bureau and Weathers Farms, stated that he is a fourth generation farmer and discussed his experience as a farmer. He explained the obstacles that farmers face and the benefits of new and developing technology for the agriculture industry. Mr. Weathers discussed succession plans and tax incentives. He stated he would utilize interns, but probably only for about 30 to 40 days a year and mostly during the stock show season. Mr. Weathers discussed the cost of hiring an employee, including workers' compensation insurance, housing, and health insurance.



10:16 AM



Mr. Weathers responded to questions about the involvement of his siblings with Weathers Farms. He explained that because of estate planning, family members are seen as employees, not owners. Mr. Weathers explained that he runs his own business entity, but benefits from the availability of his parent's equipment, rather than having to purchase new equipment. Mr. Weathers discussed the lack of land access for new farmers, and the process of bidding on land when new farmers enter the industry. Mr. Weathers responded to questions regarding the availability and cost of equipment for new farmers. Mr. Weathers stated that the biggest obstacle for farmers in his opinion is access to equipment.



10:26 AM



Mr. Weathers responded to questions from the committee regarding the value and cost of farm equipment. He discussed equipment costs, including costs for specific attachments for certain crops and equipment repairs. Mr. Weathers responded to questions from the committee regarding how new farmers access equipment. He explained custom farming to the committee, which is when a farmer agrees to use his or her equipment to perform the machine operations on another farmer's land in exchange for a set fee or rate. He discussed how it allows one farmer to have additional income and saves equipment costs for the other. In response to a question, Mr. Weathers stated that because it less cost effective to diversify crops, many farmers and ranchers are specializing in one crop.







10:35 AM



Mr. Weathers responded to questions regarding the cost of land, specifically the cost of irrigated farmland, with the irrigation equipment attached. Mr. Weathers discussed the average cost of sprinklers and the cost of installing irrigation equipment that is more efficient. Mr. Weathers discussed the effect of crops on the soil and how diversification of crops can benefit soil. The committee discussed soil health.



10:43 AM -- Overview of Land Link Program



Jennifer Visitacion, Executive Director, Guidestone Colorado, distributed a copy of her presentation (Attachment E). She provided background information about Guidestone Colorado, which seeks to grow the agricultural community through education, community development, and building partnerships. She said that Guidestone Colorado is based out of the Hutchinson Homestead and Learning Center, which focuses on agricultural and youth education. Ms. Visitacion explained the Land Link Program within Guidestone Colorado, which was established to support land access and farm succession and was developed out of a need in Chaffee County for land access for young and beginning farmers. She discussed the partnerships between the Land Link Program, the Colorado State University (CSU) Extension Division, and other organizations.



170810 AttachE.pdf



Ms. Visitacion discussed the challenges within the agriculture industry, including population growth, an aging farmer population, and a lack of next generation farmers. Ms. Visitacion discussed how the Land Link Program seeks to alleviate these problems in the industry. She explained that the Land Link Program helps retiring farmers and ranchers find strategies for succession plans; supports next generation farmers in developing resources and skills for farming; and matches landowners with young and beginning farmers seeking land. Ms. Visitacion discussed how the Land Link Program helps determine the readiness of new farmers and landowners to participate in a land transfer. She discussed some early successes of the Land Link Program, as well as land seeker and landowner matches that have failed. She discussed the services that the Land Link Program currently offers, including the land seeker and landowner matching service; vision courses and coaching for aspiring farmers, ranchers, and landowners; regional advisory and support teams; and an annual Land Link forum.



10:58 AM



Dan Waldvogle, representing himself as a beginning farmer, discussed his entrance into the agriculture industry. Mr. Waldvogle stated that he currently manages a cattle ranch in Salida. He told the committee how he became involved in Guidestone Colorado, and specifically the Land Link Program. He discussed how Guidestone Colorado has benefitted him and helped him enter the industry. He also discussed the needs of young and beginning farmers, including reaching out to rural farmers and ranchers.



11:05 AM



Ms. Visitacion explained how the Land Link Program matches landowners with aspiring farmers and ranchers. She discussed the Guidestone Colorado vision course, which is directed at aspiring farmers who want to start urban farms. She also discussed farmer readiness and how landowners and aspiring farmers interpret readiness. Ms. Visitacion discussed the components of a successful Land Link relationship, including a viable business model, open communication, equitable lease arrangements, and clear boundaries. She discussed the successes and challenges of the Land Link Program. Ms. Visitacion emphasized the importance of landowner and farmer succession planning tools to the industry.











11:13 AM



Ms. Visitacion responded to questions from the committee regarding farmer readiness, both from the perspective of landowner and aspiring farmer. She also responded to questions regarding the success rate of the Land Link program. Mr. Waldvogle responded to questions from the committee regarding his experience with the Land Link Program and where he sees himself in the next ten years. Ms. Visitacion responded to questions regarding long-term leases of agricultural lands. The committee discussed the ability of farmers to sell produce directly to schools with Ms. Visitacion and Mr. Waldvogle.



11:22 AM -- Establishment of a Beginning Farmers Network



Sharon Pattee, Executive Director, Colorado Young Farmers Educational Association (CYFEA), provided the committee with a copy of her comments (Attachment F). She explained the history of CYFEA, which was founded in 1970 as a statewide nonprofit and nonpolitical organization of men and women who were directly involved or interested in agriculture. Ms. Pattee stated that there are 12 local CYFEA chapters. She stated that the CYFEA provides leadership opportunities, including local and regional community resource and communication networking links. Ms. Pattee discussed some of the programs within CYFEA, including the Call to Action Program, which is an agricultural advocacy program. She explained the development of Annie's Project, which will provide women farmers with resource information and tools to be successful in agri-business. Ms. Pattee discussed other programs in the CYFEA and the National Young Farmers Educational Association (NYFEA) that offer community support for farmers.



170810 AttachF.pdf



11:47 AM



Ms. Pattee responded to questions from the committee regarding the involvement of the CSU Extension Division.



11:48 AM -- Expansion of Tax Credit for Sale of Land or Equipment



Ben Rainbolt, Rocky Mountain Farmers Union, Colorado Agricultural Development Authority (CADA), distributed a brochure regarding the Beginning Farmer Loan Program (Attachment G). Bill Midcap, CADA, described the CADA and stated that it is governed by seven board members and has a mission of encouraging the investment of private capital in the agricultural sector through the use of public financing for low-interest loans. Mr. Midcap discussed CADA's Beginning Farmer Loan Program, which was created through House Bill 16-1234 and involves a three-way transaction between the lender, the borrower, and CADA.



170810 AttachG.pdf





11:54 AM



Mr. Midcap discussed the loan program and responded to questions from the committee regarding the increased demand for loan certificates by young and beginning farmers. Mr. Rainbolt and Mr. Midcap responded to questions from the committee regarding the residency requirement of the loan program. Mr. Rainbolt responded to questions about the availability of loans to interested farmers and ranchers and the loan approval process. Mr. Rainbolt responded to questions from the committee regarding the promotion for the loan program and ways to increase the promotion of and demand for the program.



12:03 PM



The committee recessed for lunch.



01:28 PM -- Overview of Building Farmers Program Extension in Colorado State University



Senator Sonnenberg called the committee back to order.



01:30 PM



Anna Gerstle, Fiscal Analyst, Legislative Council Staff, distributed the fiscal note for House Bill 15-1230 (Attachment H), a flyer for the Innovative Internship Grant Program (Attachment I), and the program's FY 2015-16 Legislative Report (Attachment J). Ms. Gerstle gave a brief background and description of the program and discussed the definition of "innovative industries," as it is defined in the act.



170810 AttachH.pdf170810 AttachI.pdf170810 AttachJ.pdf



01:35 PM



Adrian Card, Colorado State University Extension, distributed a brochure regarding the Colorado Building Farmers (CBF) Program (Attachment K), an impact sheet regarding the program (Attachment L), and a copy of his presentation (Attachment M). Mr. Card discussed the development of CBF Program and explained that the scope of the program includes business planning and management, as well as experiential learning. He described how the program benefits beginning farmers and ranchers and described the CBF Program curriculum. Mr. Card discussed how CBF Program partners with Guidestone Colorado and the Land Link Program.



170810 AttachK.pdf170810 AttachL.pdf170810 AttachM.pdf





01:45 PM



Mr. Card discussed CBF Program's strengths and weaknesses. He listed the following as strengths of the program: the program's low cost, the ability to assist farmers in establishing a network, and mentorships. He discussed the weaknesses of the CBF Program, which includes challenges in teaching production skills, following up with graduates of the program, the lack of a statewide administration, and limited CBF Program staff time. Mr. Card discussed CBF Program impacts, including the large amounts of graduates of the program and increased staff knowledge. Mr. Card described the current climate in the agricultural sector as compared to 2006, before the inception of CBF Program. He discussed challenges that beginning farmers and ranchers face, including access to resources, readiness for wholesale markets, and rising land and water costs. Mr. Card discussed additional challenges for the CBF Program, including lack of funding for a statewide program.



01:57 PM



Mr. Card discussed the development of a Colorado Beginning Farmer and Rancher Center and discussed the benefits of such a center or network. The benefits he listed included giving administrative support for existing programs, brining more awareness to beginning farmer and rancher issues in the state, and providing a support system for agricultural transition and experiential learning. Mr. Card responded to questions regarding the percentage of beginning farmers and ranchers who fail, the CSU Extension Division, and the potential Beginning Farmer and Rancher Center.



02:04 PM



Mr. Card answered further questions regarding the allocation of resources for CBF Program and other similar programs if those programs were to be combined and administered statewide. He also answered questions regarding success rates of participants of CBF Program.



02:08 PM -- Access to Education and Training for Farmers



Becky Gremillion, Otero Junior College, provided background information about the agriculture program at Otero Junior College. Ms. Gremillion distributed an Otero Junior College Agriculture Program brochure (Attachment N) and an overview of the Agriculture Business Management program at Otero Junior College, Northeastern Junior College, and Morgan Community College (Attachment O). Ms. Gremillion discussed the certificates that the college offers and the benefits students who participate in those programs receive.



170810 AttachN.pdf170810 AttachO.pdf





02:12 PM



Mike Anderson, Northeastern Junior College, explained his experience with teaching agriculture. He discussed the Production Agriculture Program at Northeastern Junior College and provided a handout to the committee (Attachment P). Mr. Anderson discussed the struggles community colleges, such as Otero and Northeastern Junior Colleges face, specifically with funding of agricultural programs and availability of educational resources in rural parts of the state. Mr. Anderson discussed various colleges in the state that offer a program with an emphasis in agriculture. Mr. Anderson discussed the availability of internships and other forms of experiential learning. Mr. Anderson discussed transition planning and the need for succession plans.



170810 AttachP.pdf



02:24 PM



Mike Sullivan, Sedgwick County Economic Development Corporation, discussed the Northeastern Colorado Student to Career Opportunity (STCO) Initiative. Mr. Sullivan distributed handouts about the STCO Initiative (Attachments Q and R) and data regarding participants in the Eastern Colorado Workforce Center (Attachment S). Mr. Sullivan discussed the STCO Initiative and the work that Sedgwick County Economic Development Corporation conducts by collaborating with other programs, like Careerwise.



170810 AttachQ.pdf170810 AttachR.pdf170810 AttachS.pdf



02:30 PM



Mr. Anderson responded to questions from the committee regarding participation of students not already in agriculture schools or programs and discussed different opportunities for young people and students in agriculture. Ms. Gremillion discussed opportunities through Otero Junior College and the importance of marketing those opportunities to students. Mr. Sullivan discussed the work by Workforce Development in starting projects focusing on community gardens for grade-school children. He also discussed other programs that are directed towards young children that are focused on agriculture. Mr. Anderson discussed federal programs that provide incentives for young farmers entering the agriculture sector, such as loans through the U.S. Department of Agriculture's Farm Service Agency. Mr. Anderson discussed that lack of funding is an obstacle to provide services statewide. He discussed the need for tuition assistance and loan forgiveness for students that participate in agricultural programs. Ms. Gremillion emphasized that schools with agriculture business management programs need to find ways to reach out to schools and farmers in the western area of the state.



02:46 PM



Ms. Gremillion discussed the Agriculture Business Management Program at Otero Junior College. She provided data on how many farms the program services, including brand new farmers and farmers who are related to established farmers. Mr. Anderson provided data regarding the students enrolled in the Agriculture Business Program at Northeastern Junior College, and addressed how many students are on the production agriculture track. Mr. Anderson discussed the development and challenges of greenhouse farming programs.

















02:55 PM -- Public Testimony



02:56 PM -- Sarah Parmar, Colorado Open Lands, discussed how conservation easements benefit young farmers and ranchers who want to enter the industry. Ms. Parmar responded to questions from the committee regarding landowners who currently are working with Colorado Open Lands and have lands in the conservation easement program.



03:08 PM -- Meg Caley, Sprout City Farms, Rocky Mountain Farmers Union (RMFU), National Young Farmers Coalition, discussed the work of Sprout City Farms and the importance of programs that provide incentives to young and beginning farmers and ranchers entering the industry. She discussed access to land and the importance of partnerships with landowners and agricultural producers. She discussed the work that RMFU is doing to make the permitting process easier for building greenhouses. Ms. Caley responded to questions from the committee regarding lease agreements and farm to school programs.



03:26 PM -- Michael Womochil, Colorado Community College System, discussed the Landscape Career Pathways Program. Mr. Womochil discussed other programs, in both rural and metro schools, that provide training for students who are interested in production agriculture. Mr. Womochil emphasized that proposed legislation should help to coordinate existing programs that provide assistance to young and beginning farmers.



03:36 PM -- David Moosmen, To Market Ltd., discussed farm to table programs in the state. He stated that distribution centers and food terminals should be more available statewide. He described his program, which sells local products that would otherwise be thrown away to schools at a lower price point.



03:41 PM -- Bill Requests



Senator Sonnenberg explained the process for requesting bill drafts, and invited staff to answer any questions.





03:43 PM



Senator Donovan stated that she has three different proposals for legislation. She requested that a bill be drafted regarding agriculture workforce and development and creating an internship program. Jery Payne, Office of Legislative Legal Services, responded to questions from the committee about the drafting of a bill.

03:54 PM



Senator Donovan moved to draft a bill modeled after legislation in Wisconsin that would create an agricultural district to serve as a geographic guideline for programs available in certain areas. Committee discussion ensued.

04:09 PM



Representative Catlin proposed that a bill be drafted that addresses the importance of innovative technology within the agriculture sector in the state.

04:13 PM



Senator Sonnenberg discussed a possible bill draft that would assist community colleges in creating a program that would expand opportunities for young and beginning farmers and ranchers. Committee discussion ensued.



04:17 PM



Mr. Anderson returned to the table to respond to questions about the needs of community colleges to develop agriculture business management programs. Mr. Anderson stated that there is a growing demand for similar programs throughout the state. Mr. Anderson suggested that creating a financial incentive for colleges to create agriculture business management programs would provide more financing for such programs. Committee discussion ensued.





04:27 PM



Mr. Card returned to the table to respond to questions regarding community college resources. Mr. Womochil returned to the table to respond to questions regarding the expansion of the agricultural business management programs.

04:42 PM



Mr. Payne clarified that the chairperson of the committee can set a date by which the bills must be finalized. Senator Sonnenberg stated that the bills must finalized by September 15, 2017.



04:44 PM



The committee adjourned.