Farm Bureau priority issues
We want to thank the many Farm Bureau leaders who were involved in the legislative process. Despite the challenges of COVID-19, Farm Bureau continues to be successful because of its grassroots. Listed below are the statuses and descriptions of the 2021 Farm Bureau priority issues. Legislation which did not have any final action will carry over as priorities for the next legislative session.
• Powers of Local Boards of Health – SB1368 Bell/HB1163 Lamberth: There have been attempts by activist groups to use local boards of health as an avenue to regulate agriculture through the powers of local boards of health. This legislation places a guard rail in law to protect farmers by prohibiting local boards of health from regulating agriculture and maintaining regulatory oversight from the state. This legislation passed both chambers and was signed by the governor on April 7, 2021. The law is now in effect.
• Transfers the Tennessee State Fair to Wilson County – SB1155 Haile/HB1286 Marsh: Provides for the Tennessee State Fair being held at the Wilson County fairgrounds. This legislation passed both chambers and was signed by the governor on May 25, 2021. The law is now in effect.
• Farm Equipment Lemon Law – SB831 Niceley/HB830 Kumar: Requires a manufacturer, under certain circumstances, to replace new farm machinery with comparable farm machinery or accept return of the farm machinery and refund the full purchase price and related repair costs, less a reasonable allowance for use and a reasonable offset for physical damage. This legislation passed both chambers and was signed by the governor on May 12, 2021. The law is now in effect.
• 4-H Events Considered Field Trips – SB203 Haile/HB332 Alexander: Requires a public school to credit a student who participates in an activity or program sponsored by 4-H as present for attendance purposes. This legislation passed both chambers and was signed by the governor on April 13, 2021. The law is now in effect.
• Ag Sales Tax Reform – SB905 Stevens/HB1405 Halford: For purposes of the sales tax exemption for tangible personal property sold to qualified farmers or nurserymen, revises the definition of “qualified farmer or nurseryman” and specifies the taxexemption applies to “substances used for agriculture.” This legislation has a $2.8 million fiscal note that was not funded in the budget. As a result, it was taken off notice in both chambers until next year.
• Increase Acreage Cap for Greenbelt Property – SB1282 Niceley/HB1445 T. Hicks: Increases the maximum acres of greenbelt property allowed per ownership from 1,500 acres to 5,000 acres. This legislation was not put on notice this session to allow for continued negotiations with local government representatives.
THE BUDGET:
Lawmakers passed legislation to implement the $42.6 billion state budget for Fiscal Year 2021-2022 (FY21-22) on Thursday, April 29, 2021. This budget does not create any new debt, adds to the state’s Rainy-Day Fund for a total of $1.55 billion and uses around $250 million new recurring dollars for nonrecurring expenses. The FY21-22 state budget has considerable positives for agriculture and rural communities.
There were significant changes to discretionary spending in the legislative amendments to what was proposed by the governor in the State of the State address. This is important to note because many of Governor Lee’s proposals were heavily discussed in reporting by Farm Bureau and in the media. Below are items of note for agriculture and rural communities which were included in the FY21-22 budget:
• Tennessee Ag Enhancement Program: There is an additional $5.5 million recurring for Tennessee Ag Enhancement Program for a total of $26.5 million annually with the purpose of increasing efficiency and profitability while generating economic activity in rural communities.
• Short-line Railroad Grant Program: This is a much-needed investment by the state of $85 million non-recurring to the Department of Transportation for a short-line rail grant program as short-line rails are an integral part to economic development in many rural areas. It is expected this money will be spent over several years.
• Tennessee State Fair: There is $5.3 million ($5 million non-recurring, $300,000 recurring) to assist with infrastructure upgrades and ongoing costs with moving the Tennessee State Fair to Wilson County.
• Agriculture Extension Funding: Included in the budget is just over $4 million recurring to the state’s agriculture Extension programs. Both the University of Tennessee and Tennessee State University Extension services have been allocated an additional $2.19 million and $2 million respectively to support and expand their operations.
• Tennessee One Health Initiative: A joint effort of many state departments is the One Health Initiative, an effort to track and understand the links between zoonotic disease, human disease and the environment. The budget allocates $242,000 ($194,900 recurring, $47,100 non-recurring) for this initiative.
• Food Sales Tax Holiday: The final budget includes a sales tax holiday for food at restaurants and grocery stores but shortens the time period proposed by the governor and lowers the allocation from $100 million (non-recurring) to $50 million (non-recurring).
• Local Government Grant Program: The General Assembly lowered the governor’s proposed allocation of $200 million to this program to $100 million and allows the local governments to use the funds as they see fit as long as the funds are not used for recurring expenses. Allocation of these funds is based on population. Lawmakers expressed reasoning for the lower allocation of this program is based on federal spending coming to local governments.
• Broadband Grant Program: The legislative amendment lowered this funding from $200 million (non-recurring) to $100 million (non-recurring). Like the local government grant program, lawmakers’ reasoning for this lower allocation is based on federal spending for broadband access.
• State Pension Fund Investment: The final budget takes the funding removed from the above three initiatives and allocates $250 million nonrecurring to the Department of Treasury for the purpose of making a lump sum payment to the state’s Legacy Pension Plan which is the funding for the retirement plans for the state’s former and current employees. It was explained lawmakers believed this was a prudent and conservative use of the money to prevent Tennessee from being in a position which other states sometimes find themselves of solvency problems with the state’s pension funding.
• Workforce Development: The budget allocates $95 million non-recurring for the Department of Economic and Community Development to create new opportunities for Tennessee’s workforce and to support the growth and retention of the state’s traditional jobs base.
• Medical Residency Program: The legislature funded within the budget $5.5 million recurring to fund legislation which creates more medical residency opportunities across the state. The bill and budget allot $1.5 million recurring of this allocation to go to fund medical residency opportunities in rural communities. Lawmakers expressed this effort is to increase medical access opportunities in rural communities because studies suggest medical residents typically pursue their medical careers within the community they perform their residency.
• Veterinary Medicine Study: The budget allocates $2.5 million to the Department of Agriculture for the purpose of directing a study in animal cancers and dermatological disorders in partnership with the state universities with agriculture and veterinary medicine programs and Provectus Biopharmaceuticals.
• Rural Tourism: The budget sends $2.3 million (recurring) to the Department of Tourist Development for the Office of Rural Initiatives.
• Craft Beverage: There is $300,000 (which restores dollars reverted in FY20-21) and an additional $150,000 (non-recurring) for the Tennessee Wine and Grape Board. Additionally, $350,000 (non-recurring) is proposed for the Farm-to-Pint program.
Extension Funding:
The new funding for TSU will aid in the general operations of the TSU Extension program. The proposal for the UT Extension program is to return to the “three-agent model” in every county. The “three-agent model” is for the state to costshare funding with the county to have an agent for each program area in every county. The three program areas are agriculture, 4-H youth development and family and consumer sciences.
Prior to 2010, most counties in the state had the three-agent model. A state budget crunch at that time lowered funding for the state portion of the costshare with the counties. Most of the counties that were impacted could not cover the costs of paying the full amount of an agent’s salary. The new funding will allow the state to work with the impacted counties to return to the three-agent model for UT Extension personnel. Below are the 32 counties that will be impacted (presented by UT Regions):
WESTERN REGION: Benton, Chester, Decatur, Houston, Lake, Lewis, Perry, Stewart and Wayne.
CENTRAL REGION: Cheatham, Clay, DeKalb, Jackson, Macon, Marion, Moore, Pickett, Sequatchie, Trousdale and Van Buren.
EASTERN REGION: Campbell, Cocke, Fentress, Hancock, Johnson, Meigs, Morgan, Polk, Rhea, Scott, Unicoi and Union.