Pennsylvania Farm Bureau said that Gov. Rendell’s proposed Fiscal Year 2008-2009 state budget restores critical funding to help farmers acquire crop insurance, but continues the trend of funding cuts which impact agriculture, particularly for environmental programs.

“Proposed funding for several key programs that directly reaches farmers and their fields have been cut for the second year in a row,” said PFB President Carl T. Shaffer.

Gov. Rendell’s budget plan does respond to one top concern of Farm Bureau by restoring $1.5 million in support for Crop Insurance, taking it to the $3 million level of two years ago.

However, the budget proposal recommends reductions to state Conservation Districts, cuts to the Ag Excellence Programs and reductions in Agriculture Research administered by the Pennsylvania Department of Agriculture.

In addition, funding for the Nutrient Management Fund remains stagnant, despite the importance of the program which provides technical assistance to farmers through loans, loan guarantees and grants to help implement environmental measures. PFB is seeking more than $1.7 million in additional funding compared to the amount proposed in the budget.

Conservation districts, which face a reduction in funding of 33 percent over the past two years, help provide farmers with needed technical assistance in meeting increased regulatory burdens imposed on agriculture and in helping farmers meet nutrient and sediment reduction goals in the Chesapeake Bay.

The Governor’s proposal is more than $1.5 million less than the amount PFB is seeking for conservation districts.

Cuts in Agricultural Research and Agricultural Extension programs concern Pennsylvania farmers, who often benefit through increased productivity and income. Agricultural research and extension programs also help advance environmental measures and alternative energy production. A 30 percent cut is proposed in the agricultural research budget for the Department of Agriculture, compared to two years ago.

In addition, Penn State University faces proposed cuts of more than $500,000 in agricultural research and nearly $600,000 in agricultural extension appropriations compared to last year.

“Pennsylvania needs to maintain its investment in agriculture so it can continue to benefit consumers and the state economy, while insuring we don’t fall behind other states,” added Shaffer.

Farm Bureau noted that the Governor’s proposal is just the beginning of the budget process and not the end. “Pennsylvania Farm Bureau will work with Gov. Rendell and the General Assembly to assure that the essential needs of Pennsylvania farmers are addressed,” concluded Shaffer.

2/8/2008