Agriculture in Wisconsin is a $59 billion industry and provides roughly 354,000 or 10 percent of jobs in the state. More than that, it is an important part of our heritage and our way of life here. The state budget passed last month maintains crucial programs and tax credits related to agriculture in the state while recognizing that spending had to be reigned in to get the state’s finances in order for future generations. Like the transportation portion of the budget, the agriculture section did not receive as much publicity as other parts of the budget, but the provisions contained in the budget are crucial to the future of agriculture in Wisconsin.
The biennial budget that was recently passed by the state legislature and signed by the governor allows the Department of Agriculture, Trade and Consumer Protection (DATCP) to hire an additional ten meat inspectors. Wisconsin has the largest number of state-inspected meat plants in the country. Five of the new positions will be funded by the state and the other five will be funded by the United States Department of Agriculture. There are new federal inspection requirements and these new positions will allow the state to meet the new safety and inspection requirements. With these new inspectors, Wisconsin can implement the new interstate meat shipment program, allowing our meat processing industry to grow.
The new state budget maintains investment tax credits for dairy and meat producers, food processing plants and food warehouses. The Dairy 2020 grant program was transferred to DATCP, which will now be responsible for certifying the eligibility of these businesses. In total, $2.8 million will be available this year for grants, allowing the state to leverage $28 million in private investment.
Conservations efforts are also preserved in the state budget through grants to farmers and county conservation staff. A total of $18 million is maintained for these efforts. County conservation workers are really the state's front line in agriculture conservation efforts. They help farmers implement conservation measures and protect the land and water of the state.
The legislature approved the Joint Finance Committee’s recommendation to keep the Purchase of Agricultural Conservation Easement (PACE) program in state statutes and continue the 16 PACE agreements that are currently in effect. PACE purchases conservation easements from farmers, paid for by conversion fees on property owners who develop their land. The conservation easements prevent the land from being developed for any purpose other than agriculture. The PACE program was authorized during the last biennial budget and sixteen projects had already received preliminary approval from DATCP. The legislature provided funding for the 16 PACE agreements that are already in effect but is also requiring DATCP to submit a proposal to the Legislature on a more cost effective way to preserve agricultural lands.
The Farmland Preservation program is maintained under the budget with $27 million in Farmland Preservation tax credits for Wisconsin farmers who agree to conserve their agricultural land. Counties are required to update their farmland preservation plans and grant money is included in the budget to help them do so.
This was the most difficult budget I have worked on in my time in the legislature, but in the end, it was one I felt comfortable voting in favor of, because I knew it was time to start making the tough decisions we had put off for so long. Our financial problems would only have gotten worse if we had continued to balance the budget using gimmicks and one-time fixes. At the same time, I am pleased that we were able to preserve important agricultural programs like the farmland preservation program and expand our meat inspection program to help that industry grow and thrive.
If you have any questions about any of the information I have included or if you have suggestions on other topics or issues you would like learn more about, you may call my office toll-free at (800) 991-5541; write me at P.O. Box 7882, Madison, WI 53708; or e-mail me at: Sen.Olsen@legis.state.wi.us. You can also sign up for our newsletter at our website:
http://www.legis.state.wi.us/senate/sen14/news/index.htm .