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Issues: Immigration Reform

 

Statement of the Farm Credit Associations of New York

In Support of

Comprehensive Immigration Reform

Statement Released by:

Michael A. Gerber, President and CEO of Farm Credit of Western New York

William J. Lipinski, President and CEO of First Pioneer Farm Credit

George S. Putnam, President and CEO of Yankee Farm Credit

 

The future of hundreds of New York State farms is being threatened today by the disruption of their stable labor force. As the largest lenders to New York State agriculture, the Farm Credit Associations of New York are concerned with the severe financial problems being created for many farm families from this situation. If this continues, we conservatively estimate that New York State will lose in excess of 900 farms, $195 million in value of agricultural production and over 200,000 acres in production in agriculture over the next 24 months.

The current targeting of farm businesses by the Immigration and Customs Enforcement (ICE) agency and the resultant difficulty and confusion that this has created in maintaining the necessary workers will cause long-term financial damage to family farms. This situation puts New York farmers in a competitive disadvantage with farmers in other US regions as well as off-shore competitors.

Over the past months, ICE raids attempting to identify illegal immigrants have been conducted on a number of New York farms. In some cases, farmers have been unable to harvest or market crops as a result of these disruptions.

While farmers must deal with natural disasters and with wide farm price fluctuations as a result of global market conditions, the labor situation is a man-made disaster. It is imperative that Congress address this situation when they return to Washington in November.

Farm Credit estimates that the losses to farmers to date extend into the millions of dollars. This situation, if allowed to continue, will force some farms to cease operations. The current outlook is severe:  

  • Financial losses to New York farms totaling into the millions of dollars because of the lack of an adequate and stable labor force and the disruption caused by ICE raids.

  • Hundreds of family farms will go out of business because of the financial losses from the labor problems created by raids and the threat of raids. Based on past experience these farms will not come back into production.

  • Thousands of on-farm jobs will be permanently lost if these farms go out of business.

  • The economic impact of this situation goes well beyond the farm-gate. In addition to the potential loss of thousands of farm jobs, Farm Credit estimates that hundreds and possibly thousands of jobs will be lost in agricultural support and farm related businesses in rural communities. Nationally, economists estimate that three to four jobs in the upstream and downstream economy are created by the production associated with each farmworker job.  The economic multiplier and job loss impacts resulting from farm closures will be felt throughout New York State.

  • The economic problems created by the loss of farms will also extend to the local tax base, as farms are no longer productive units generating income and creating jobs.

  • The elimination of farms will force thousands of acres of farmland out of production. Again, based on past experience, most of this land will not come back into production.

  • The current farm labor situation will make Americans more dependent on a food supply from other countries.

Projected Impact – 24 Months  

Farm Credit estimates the following negative impact to New York State farms if the current labor situation continues for the next 24 months.

Projected Farm, Income and Acreage Losses from Current Labor Situation

 

Farm Type     Loss of Farms   Loss of Farm Production       Loss of Production Acreage

Vegetable         176                $35 million                              32,000 acres

Fruit                225                $18 million                               18,600 acres

Dairy and other  522                 $144 million                           150,000 acres

 

Comprehensive Immigration Reform Legislation is Necessary 

The immigration reform situation must be addressed in a comprehensive manner that allows the necessary work supply on American farms. While all Americans support border security, this will only work with the establishment of reasonable and effective farm worker programs. For the past ten years, farmers have urged Congress to address the need for a workable guest worker program. Farm organizations, including Farm Credit, have repeatedly highlighted the need for effective farm worker programs that offer both a long-term solution and a viable transition approach that allows New York farms to retain their experienced workforce.

When Congress returns from its current recess, it is critical to New York State and American farmers and for the American consumer that comprehensive immigration reform with appropriate farm worker provisions be adopted. Until that time, farm businesses need to be allowed to harvest and market their crops without further disruptions.  

 

Farm Credit: Farm Credit of Western New York, First Pioneer Farm Credit and Yankee Farm Credit are part of the federal Farm Credit System. As customer-owned cooperatives, Farm Credit institutions are owned and governed by farmers. In New York State, these Farm Credit institutions serve 8,500 members with over $1 billon in loans.

Contact:

Robert A. Smith

Vice President for Governmental Relations

Northeast Farm Credit Associations

202-879-0846                                                           

                                                                     

 
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