In Ceremony, Governor Rell Signs Bills to

Preserve $1B Dairy Industry and State Farmland

            At a ceremony at Hytone Farm in Coventry, Governor M. Jodi Rell signed two bills intended to save Connecticut’s $1 billion dairy industry and preserve the state’s farmland.

            “This economy has been a road of no return for so many of our farmers and we cannot afford to lose and industry so vital to our economic and environmental future,” Governor Rell said. “Dairy farmers struggling with rock-bottom milk prices and high production costs are in desperate need of a safety net. We do not take for granted what dairy farming means to our state now and for future generations. The temporary assistance payments under this new law can help farmers stay in business.”

            Senate Bill 891 gained broad bipartisan support in the most recent General Assembly session. It is intended to raise $10 million a year over the next two years. The payments will sunset on July 1, 2011.

            The legislation changes the formula for distributing money raised by a $40 fee levied on the recording of municipal land documents. Funds from the fee are used as grants under the Community Investment Account (CIA). Under the current CIA structure, the money is divided in four equal portions allocated to the Connecticut Commission on Culture & Tourism (CCT) for heritage preservation, the Connecticut Housing Finance Authority (CHFA) for affordable housing, the Department of Environmental Protection (DEP) for municipal open space and the Department of Agriculture for agriculture viability grants and farmland preservation.

            The new measure allots 20 percent each to the CCT, CHFA and DEP and uses the remaining 40 percent for direct grants to dairy farmers to help them recover some of their losses.

            Connecticut currently has 151 dairy farms that use over 83,000 acres in cropland, of which 30,000 acres is preserved farmland. That is down from 500 farms in 1990 and 210 in 2007. During the first quarter of 2009, state dairy farmers received approximately $1.07 a gallon for milk produced, compared with $1.42 a gallon in 1998 – a drop in price of nearly 25 percent.

            Governor Rell has directed the state Commissioner of Agriculture to work with other states in the Northeast to help improve the federal milk pricing system. She has also joined other New England governors in urging for a change in milk pricing at the federal level.

According to a 2009 University of Connecticut economic analysis, the state dairy industry generates:

·        As much as $1.1 billion in sales

·        Approximately 4,200 jobs

·        $145 million to $208 million in personal income

            Related industries include feed suppliers, fertilizer and seed suppliers, veterinary services, equipment manufacturers and distributors, processing equipment, packing materials refrigeration, transportation and energy.

            “This is a defining moment for Connecticut’s dairy industry,” said Don Tuller, President of the Connecticut Farm Bureau Association. “We applaud Governor Rell for her leadership in providing critical support to dairy farmers facing historic losses. By signing Senate Bill 891, Governor Rell has provided a safety net for dairy farmers and ensured that Connecticut maintains the infrastructure necessary for agriculture to thrive in our state.”

            Governor Rell also signed Senate Bill 1082, which requires the state Farmland Preservation Advisory Board to review all state-owned land currently used for agricultural purposes and evaluate methods to permanently preserve each parcel, including ways that could increase state revenue. The review would exclude land owned by the state Department of Environmental Protection.

            The state’s goal is to preserve 130,000 acres of farmland, with 85,000 acres of active cropland. To date, about 25 percent or 254 farms totaling 34,500 acres have been approved for protection by the Farmland Preservation Program.