Chenango’s farming community stands against $15 minimum wage
NORWICH – Chenango’s farming community says that if a proposed $15 an hour minimum wage goes into effect, the impact on the agriculture community would drive many area farms into the ground.
Last week, the New York Farm Bureau released their priority list for the 2016 legislative session. Topping that list: Gov. Andrew Cuomo’s proposal to raise the state’s minimum wage to $15 per hour for workers across the board.
NYFB says the governor’s plan would dramatically affect farms’ competitiveness and cost them an estimated $500 million in additional annual labor costs alone. Pair that with tumbling milk and commodity prices, and it’s a formula for disaster, the organization argues.
And Chenango County’s farming community agrees.
“It’s not a good thing for agriculture,” said Chenango Farm Bureau President Bradd Vickers. “For agriculture, it means that just like all other employers, less people will be employed. Less people will be able to assist in the industry.”
According to the Farm Bureau, the average agricultural wage in New York State is already $12.39 per hour – well above the mandated minimum. Any increase will drive up wages for all employees. Expense of payroll taxes, unemployment insurance, and FICA will also increase; and unlike some industries, those are extra costs that farmers can’t pass down, Vickers noted.
“Of course it’s something that’s instrumental to all employers, not just agriculture. Farm Bureau is opposed to it because in raising the minimum wage, cost is usually passed down to the consumer,” he said. “But in the case of agriculture, employers don’t have the ability to pass on additional costs like some businesses can. So in their case, it can be even more detrimental.”
Other expenses will come from increased costs for goods and services that farms need to purchase in order to continue their operations, he added.
“A raise in minimum wage would destroy small farms,” said retired dairy farmer Ken Dibbell, an advocate for Chenango County’s farming community. “When combined with the current low milk prices, forcing farmers to pay hired help at $15 per hour will cripple many farms and kill some outright ... How does Governor Cuomo think farmers can pay for a 60 percent increase in farm labor when farmers are already losing $10 on each (hundredweight) of milk they produce?”
According to NYFB President Dean Norton, Farm Bureau members plan to hold their representatives accountable on the issue as it reaches the legislative floor.
“The Governor’s minimum wage proposal makes New York Completely uncompetitive with the other agricultural states. When Pennsylvania’s minimum wage is $7.25 and New York’s is $15, how can our farms and other businesses compete? The answer, unfortunately, is to reduce labor costs or shut down,” he said.
Last week, the New York Farm Bureau released their priority list for the 2016 legislative session. Topping that list: Gov. Andrew Cuomo’s proposal to raise the state’s minimum wage to $15 per hour for workers across the board.
NYFB says the governor’s plan would dramatically affect farms’ competitiveness and cost them an estimated $500 million in additional annual labor costs alone. Pair that with tumbling milk and commodity prices, and it’s a formula for disaster, the organization argues.
And Chenango County’s farming community agrees.
“It’s not a good thing for agriculture,” said Chenango Farm Bureau President Bradd Vickers. “For agriculture, it means that just like all other employers, less people will be employed. Less people will be able to assist in the industry.”
According to the Farm Bureau, the average agricultural wage in New York State is already $12.39 per hour – well above the mandated minimum. Any increase will drive up wages for all employees. Expense of payroll taxes, unemployment insurance, and FICA will also increase; and unlike some industries, those are extra costs that farmers can’t pass down, Vickers noted.
“Of course it’s something that’s instrumental to all employers, not just agriculture. Farm Bureau is opposed to it because in raising the minimum wage, cost is usually passed down to the consumer,” he said. “But in the case of agriculture, employers don’t have the ability to pass on additional costs like some businesses can. So in their case, it can be even more detrimental.”
Other expenses will come from increased costs for goods and services that farms need to purchase in order to continue their operations, he added.
“A raise in minimum wage would destroy small farms,” said retired dairy farmer Ken Dibbell, an advocate for Chenango County’s farming community. “When combined with the current low milk prices, forcing farmers to pay hired help at $15 per hour will cripple many farms and kill some outright ... How does Governor Cuomo think farmers can pay for a 60 percent increase in farm labor when farmers are already losing $10 on each (hundredweight) of milk they produce?”
According to NYFB President Dean Norton, Farm Bureau members plan to hold their representatives accountable on the issue as it reaches the legislative floor.
“The Governor’s minimum wage proposal makes New York Completely uncompetitive with the other agricultural states. When Pennsylvania’s minimum wage is $7.25 and New York’s is $15, how can our farms and other businesses compete? The answer, unfortunately, is to reduce labor costs or shut down,” he said.
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