Source: Governor of Virginia
Posted on: 7th January 2011
Secretary of Agriculture and Forestry Todd Haymore today announced Governor Bob McDonnell’s agriculture and forestry initiatives for 2011.
The announcement includes legislation and budget amendments that Secretary Haymore will advocate on behalf of the Administration, as well as long-term goals that he, along with the Governor, hopes to accomplish this year and over the next three years.
In the upcoming session, the Governor will propose legislation to preserve working farm and forest lands that will coincide with his goal to preserve 400,000 acres of open space.
Legislation will also be introduced in accordance with a recommendation from the Governor’s Economic Development and Jobs Creation Commission to create a reimbursable tax credit program for the establishment or expansion of vineyards and wineries.
In addition, family farms and the environment will be aided by two new positions in the Agriculture Stewardship Act program to help them meet water quality requirements in the Chesapeake Bay region and throughout the state while maintaining commercial viability.
This is part of the fulfillment of Virginia’s Watershed Implementation Plan (WIP) that was recently approved by the Environmental Protection Agency.
In 2010, the first year of the McDonnell Administration, agriculture and forestry continued to thrive as Virginia’s top two industries in spite of difficult global economic conditions.
According to a 2008 University of Virginia economic impact study, agriculture generates about $55 billion in annual revenue and about 350,000 jobs per year, while forestry is responsible for an addition $24 billion in revenue and 150,000 jobs per annum.
Recent reports from the Virginia Department of Agriculture and Consumer Services (VDACS) point to the maintenance, and possible increase, of the 2009 level of agriculture and forestry product exports when the industries reached an all-time high of $2.3 billion. Strong partnerships have been built with existing importers of Virginia products, as well as efforts to recruit new importers around the globe.
Some of these partnerships have spawned from recent trade mission trips to the United Kingdom and Europe, where Governor McDonnell and Secretary Haymore met with foreign companies and promoted Virginia’s leading products in July.
Also in 2010, Virginia’s wine industry continued to thrive and gain recognition both domestically and internationally. The General Assembly agreed to more than double the amount of funds placed into the Virginia Wine Promotion Fund for research, education and marketing programs.
First Lady Maureen McDonnell joined Secretary Haymore to play an active role in heightening the profile of Virginia wine by leading trips across the state to wineries and promoting the product in both the United States and abroad.
Virginia also landed two top wine industry gatherings in 2010 when both the Wineries Unlimited Trade Show & Conference and the Wine Bloggers Conference announced that they would hold their respective annual events in Virginia during 2011.
These efforts and attention resulted in a 13% increase in sales of Virginia wine during last fiscal year over the previous fiscal year. Sales of Virginia wines in the first quarter of fiscal year 2011 are up 8% over the same time period of fiscal year 2010.
Speaking about the efforts, Governor McDonnell said, “Virginia’s agricultural and forestry industries make the diverse products that are the foundation of our daily lives, from the food we eat to the timber that frames our homes. These outstanding products are in high demand both here and abroad. Our farms and forests also provide many environmental benefits and the preservation of working lands for future generations. We must do all we can to support these industries so that they can continue to provide for our families. I look forward to working with Secretary Haymore and the state’s agricultural and forestry stakeholders to make sure that our farmers, foresters, producers, and manufacturers have more opportunities to move their products into the global marketplace, bringing more recognition and revenue to the Commonwealth.”
“The Governor has provided agriculture and forestry with several opportunities in the General Assembly to build on their status as Virginia’s top two industries in 2011,” said Haymore, who previously served at VDACS Commissioner from 2007 – 2010. “He has also made it clear that I am to continue to act as his and Virginia’s chief marketing and development officer for agriculture and forestry products both here and abroad. It is a mandate that I look forward to carrying it out with our private sector partners throughout 2011 and the remainder of the Governor’s term.”
Initiatives to Support Agriculture and Forestry in 2011 – General Assembly Budget Amendments – Agriculture
$400,000 – Preserves working farm and forest lands by providing meaningful funding of Virginia’s successful Purchase of Development Rights program. This will raise the program’s total appropriation to $500,000 per annum.
$280,000 (approx.) – Fulfills the intent of 2010 legislation requiring the full portion of the wine liter tax derived from the sale of Virginia wine be directed to the Wine Promotion Fund.
$250,000 – Establishes a reimbursable tax credit program for the establishment or expansion of vineyards and wineries as part of the Governor’s Economic Development and Jobs Creation Commission recommendations. Specifically, this budget amendment and legislation provides for a reimbursable tax credit capped at $250,000 annually for the expansion or installation of a winery or vineyard. The tax credit is to be applied against an individual’s income tax for 25 percent of the cost of such expansion or installation.
$185,962 – Provides two new positions in the Agriculture Stewardship Act program. In fulfillment of Virginia’s Watershed Implementation Plan, these two positions – one located in the Shenandoah Valley, another stationed in Richmond who will focus on state’s Northern Neck, Tidewater, and Eastern Shore regions – will help family farms meet water quality requirements in the Bay region and throughout the state while maintaining commercial viability.
$78,710 – Provides for a new dairy inspector position to address deficiencies cited by the US Food and Drug Administration. This position will support both food safety and commerce/trade initiatives.
General Assembly Budget Amendment – Forestry
$286,719 – Provides additional funding for the agency to replace or purchase emergency response equipment through the state’s Master Equipment Lease Purchase program over five years. The total investment over this period will be a little more than $1.3 million.
International Marketing / Export Promotion
Co-hosting the third annual Virginia Agricultural Trade Conference and Workshop in March in Norfolk. The final 2010 agricultural and forestry products export figures will be released during the conference.
Planned trade missions to Asia (China, Korea, and Japan), Canada, United Kingdom and mainland Europe, India, and Cuba.
Use “diversified portfolio” approach to market to both developed and developing markets.
Target foreign markets such as China and Japan that are currently very important customers and also have rapidly growing economies and an increasing demand for imported agricultural products. Also work with China for increased openness in agricultural trade.
China is currently one of the top export markets for Virginia’s agricultural exports and the market continues to develop rapidly. For the first nine months of 2010, date, Virginia has exported $122 million in agricultural products to mainland China. Japan currently ranks 15th in Virginia’s top agricultural export markets; Korea ranks 24th.
Continue to look for existing opportunities, while advocating for fair, increased market access in established markets such as Europe.
The European region purchases more than $300 million annually in agricultural products from Virginia, including wood products, leaf tobacco, grains and feed, seafood, wine, peanuts, and other specialty food items. Germany, Ireland, The Netherlands, Switzerland, Portugal, Poland, and the United Kingdom are Virginia’s top European export markets.
Look towards future export opportunities by beginning to develop relationships and explore new markets such as India, which is currently a minor customer for Virginia’s agricultural product but whose economy is growing at nearly 9% per year and whose demand for imported food and other agricultural products is starting to rise significantly.
VDACS marketing and development staff recently managed a trade activity in India on behalf of the Southern United States Trade Association, a trade group representing agricultural exports from the region. The activity provided an opportunity to meet with India’s leading importers of products including apples, wood products, wine, and specialty food products.
Take advantage of unique market opportunities, such as opening more sales opportunities for Virginia’s agricultural exports to Cuba.
Through the first three quarters of 2010, Virginia ranks 4th among all states in export sales to Cuba, at $25 million. Virginia has been a leading exporter to Cuba for the past several years, based on engagement with Cuban officials and agencies since 2001. The state’s top export products to Cuba include soybeans, pork, poultry, and apples
2010 Successes
Worked with private sector partners so that 2010 is on track to maintain, and possibly exceed 2009 level ($2.3 billion, an all-time high) of Virginia agricultural and forestry products exported in an otherwise challenging global economic environment.
Built strong partnerships with Virginia companies currently exporting or exploring the opportunity to export. Crown Orchards, Smithfield Foods, Montague Farms, Virginia Poultry Growers Cooperative, Feridies Peanuts, Perdue Agribusiness, New Horizon Wines, and Richmond Cold Storage are just a few of the Virginia-based companies or companies that have significant operations in Virginia that have worked with Secretary Haymore and Virginia Department of Agriculture and Consumer Services (VDACS) marketing and development staff to increase exports in 2010.
Secretary Haymore and VDACS marketing and development staff traveled domestically and abroad to promote Virginia products and recruit agribusinesses to the Commonwealth
Trade Mission to the United Kingdom in May, and Cuba in November
Joined gubernatorial trade mission to Europe in July
Significantly raised the profile of Virginia wine both internationally and domestically.
Worked with the General Assembly to more than double ($580,000 to $1.3 million) the amount of funds placed in the Virginia Wine Promotion Fund for research, education, and marketing programs
Worked with the First Lady McDonnell and her FLITE initiative and team to bring more attention to Virginia wineries and to encourage more restaurants and retailers to sell Virginia wines.
Worked with City of Richmond, Virginia Tourism Corporation (VTC), and wine industry to recruit the annual Wineries Unlimited Trade Show & Conference to Richmond in 2011; it had been held in Pennsylvania for more than 30 years.
New reports show that the sales of Virginia wines were up almost 13 percent in the FY10
Overall sales of Virginia wine are up more than 8 percent in the first quarter of FY11; distributor sales are up almost 9 percent during same time percent after being stagnant over the previous three fiscal years.
Created the “Choose the Commonwealth” campaign to highlight the quality of Virginia agricultural products and encourage their use by Virginia businesses and government entities.
Produced an agricultural portion of the Watershed Implementation Plan (WIP) that carefully balances the Governor’s commitment to Bay restoration and low financial and regulatory burdens on farmers.
Working with the statewide agricultural community, VA’s WIP relies on the implementation of voluntary resource management plans that allow each farmer to meet the specific water quality improvement needs of his operation, rather than a cookie-cutter approach.
The plan also relies on the provision of adequate cost-share funding from state and federal sources, as well as expansion of VDACS’ successful Agricultural Stewardship Act program.
Read more:
http://www.thegovmonitor.com/world_news/united_states/virginia-outlines-2011-agriculture-and-forestry-initiatives-44469.html