A rural Democrat in the state Senate is proposing an increase to a farmworkers’ tax credit.

Sen. Jen Metzger, D-Rosendale, recently proposed legislation to increase the Farm Workforce Retention Credit from $600 to $1,200 per farm employee. Metzger, who was among the 40 senators to vote for the Farm Laborers Fair Labor Practices Act on June 19, wrote in her legislative justification that the legislation is necessary because farm labor costs have increased 23.5% since 2007 with further increases coming, though she didn’t specifically mention the Farm Laborers Fair Labor Practices Act as a reason for the future increases. Metzger’s legislation would increase the tax credit from $600 to $800 starting Jan. 1, 2021, and then increase the credit to $1,200 per employee starting Jan. 1, 2022.

“According to 2017 USDA ERS data, farm labor expense in New York was about 13.2% of the value of agricultural receipts, compared to the national average of 9.5%,” Metzger wrote in her legislative justification. “A recent Farm Credit East report estimates that labor costs will increase by $299 million. New York farmers faced a number of challenges in recent years including a rising minimum wage, a tightening labor market, and upcoming changes to overtime pay. These costs place New York farmers at a competitive disadvantage. As producers of commodities farms have a limited ability to increases prices in national and international market. In an effort to provide relief for farm employers, this legislation seeks to increase a valuable tax credit for farmers. As markets continue to fluctuate and labor costs continue to rise it is important to provide farm employers with certainty. This legislation provides an added measure of certainty by extending the farm workforce retention credit permanently and increasing its value.”

There is not yet companion legislation in the state Assembly.

Several pieces of farm-related legislation sponsored by Metzger were approved in the Senate during the last legislative session, including a Young Farmer Loan Forgiveness program, legislation to make it easier for new farmers to access grant funding, a Young Farmer Apprentice Program, support for food hubs, creation of an agriculture hotline, legislation to permit establishment of farmers markets at local and state parks, and legislation creating and expanding regional farmers markets.

Senators also passed legislation Metzger sponsored to allow contractors working on a farm to be included under agricultural district protections, to reduce farm vehicle paperwork and a 10-year tax exemption on agriculture buildings and structures.