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MD Strategic Plan for Agriculture

MD Strategic Plan for Agriculture. Recommendation:

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MD Strategic Plan for Agriculture

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    1. Business Assistance and Development Kenny Bounds MD Strategic Plan for Agriculture

    2. MD Strategic Plan for Agriculture

    3. Maryland Agriculture and Resource Based Industry Development Corporation Help farm, forestry, and seafood businesses achieve profitability and sustainability. Provide targeted services and a specialized support infrastructure that helps retain existing rural businesses and commerce. Promote rural entrepreneurship and nurture emerging Ag/RBI industries. Sustain the rural working landscape MARBIDCO Mission

    4. MARBIDCO First loan made in September 2007 $2,637,000 loans made to date 10 Maryland Resource Based Industry Financing Fund loans 6 Emergency Drought Assistance loans 21 Grants in three programs for $280,000 Approx. 2/3 of requests approved $3.25 million appropriated for FY 09

    5. MARBIDCO Maryland Resource Based Industry Financing Fund Offers low-interest loans to established Ag/RBI firms for the purchase of land and capital equipment for production and processing activities. Maximum Loan Amount - $250,000 or $350,000 if a purchase. A commercial lender and/or a public instrumentality must have an equal financial commitment in the project. MARBIDCO takes second position on the collateral security.

    6. MARBIDCO Rural Business Working Capital Loan USDA Rural Development and state dollars fund this program. Offers low-interest loans to established Ag/RBI firms for working capital and equipment purchases. Maximum Loan Amount - $50,000. A letter of referral from a commercial lender is required.

    7. MARBIDCO

    8. MARBIDCO Grant Programs MD Farm and Producer Viability Grant designed to improve the financial viability of producers/processors or assist fledging rural entrepreneurs through specialized business planning assistance and preferred access to MARBIDCO’s low-interest loan programs.

    9. MARBIDCO Grant Programs MD Value Added Producer Grant Compliments USDA Value Added Producer Grants MARBIDCO will provide up to 1/3 of the non-federal matching requirement under USDA Funds will be required to be used for planning or working capital purposes in accordance with USDA regulations.  Eligible purposes include determining appropriate marketing techniques and creating business plans or paying operating costs before a business has sufficient cash flow from operations. 

    10. MARBIDCO Local Government Cost Share Program Designed to lend support to local rural business development efforts Must assist Maryland’s farming, fishing, forestry or seafood industries MARBIDCO contribution may not exceed the local government contribution unless the county is a “One Maryland” county “One Maryland” counties qualify for a 2X MARBIDCO match

    11. MARBIDCO Rural Land Preservation Installment Purchase Agreements In conjunction with MALPF Jim Conrad will give details in the late morning session Next Generation Farmland Acquisition Program Funding source approved this past legislative session Likely no funds available until early 2009

    12. MAERDAF Maryland Agricultural Education and Rural Development Assistance Fund Financial support to rural focused nonprofit organizations that promote statewide and regional planning, economic and community development and ag/forestry education Funding approx the same as FY 08 Approx. $230- $250,000

    13. New program developed this spring to offer aggressive new programs for Young, Beginning, Small or Minority Farmers $32 million initial program amount with strong support of the board and staff for continuance beyond this amount Many features in the program designed to compliment MARBIDCO loan and land preservation programs Designed to partner with others, such as the University of Maryland, for education, mentoring and financial planning MidAtlantic Farm Credit- Start Right

    14. Credit Program Designed to help YBSM borrowers access credit and build the foundations for a successful operation Mentoring and Resources Introduce those individuals to other people and agencies who can act as mentors and resources for their business development Educational Program Help YBSM borrowers and prospects develop their skills, whether or not they are currently managing an operation MidAtlantic Farm Credit- Start Right

    15. Start Right Farmland Financing Program – eligible for all borrowers Term and Operating Loans and loans for BMP’s– must qualify as YBSM Low interest loans for farmland, equipment, operating Concession on underwriting standards Low Interest Loans for Agricultural Conservation – new bond issue of $3 million coming this month. MidAtlantic Farm Credit- Start Right

    16. MD Strategic Plan for Agriculture

    17. Rural Broadband Rural Broadband Assistance Fund $10 million over 3 years-state $6 million federal Five Regional Economic Development Councils formed the Maryland Broadband Cooperative Using the electric coop model Other users have joined such as ISP providers giving service to the last mile

    18. Rural Broadband Tremendous Progress Already run from Wallops Island, VA to the Chesapeake Bay Bridge and from Patuxent Naval Air Station to Southern Maryland Bringing full IT potential to Maryland’s rural communities and farms

    19. MD Strategic Plan for Agriculture

    20. Business Planning Resources University of Maryland – Maryland Cooperative Extension MREDC Maryland Rural Enterprise Development Center “To provide entrepreneurs, new and beginning farmers, and start-up and maturing businesses with the highest level of educational support for ensuring developmental success”

    21. Business Planning Resources - MREDC

    22. Business Planning Resources - MREDC

    23. Business Planning Resources – SBDC’s

    24. Jorge Austrich, COO of the Small Business Division, has been appointed to be the interface between DBED and Resource Based Industries Greg Cole serves on the MARBIDCO Board of Directors and Credit Committee Business Planning Resources - DBED

    25. DPI conducted a study of poultry profitability Dan Cunningham from the University of Georgia updated a study that he had done 10 years ago on Delmarva Wes Musser is working on new cash flow numbers for Maryland producers with the help of Jennifer Timmons, Jennifer Rhodes, Eddie Johnson and myself Poultry Profitability Study

    26. MD Strategic Plan for Agriculture

    27. Equine Maryland Horse Park did not work out for Anne Arundel County. Numerous other counties are looking at horse parks. They include Cecil, Harford and counties on the Eastern Shore but MHIB has tabled working on the park until after November Feasibility study about to be released will show that it will most likely have to be coupled with another public/private entity to justify it.

    28. Equine A lot of equine and ag organizations are in the process of garnering/assessing support for the slots referendum to be held this fall. Maryland Dept of Agriculture and the College Park Animal Health Diagnostic Lab have announced a new PCR test for the Rhino virus. Will allow the industry and MDA to respond more effectively if there is an outbreak, reducing the adverse economic impact if there is an event.

    29. MD Strategic Plan for Agriculture

    30. Insurance Some work has been done on this but it remain an issue in Maryland as well as nationwide. MD Insurance Admin. produced a brochure designed to help farmers access coverage. Direct Marketing Association is doing a market study to determine need, availability and costs

    31. MD Strategic Plan for Agriculture

    32. Business Assistance: Costs Waive amusement tax for agritourism State legislation failed the past two years State does not want to dictate to the counties and deny them a revenue source Decision needs to be made locally Farm Bureau is working on a plan to communicate with counties and to help those interested in drafting legislation

    33. Business Assistance: Costs Support reform of H2A and H2B Federal issue New proposal to index wages to local may be worse than present. Increase funding levels, participation and types of crops eligible for crop insurance Increase in policies in MD by over 1,000 from 2002 – 2008 New coverage coming out, including LGM for dairy Premium subsidy changed from a fixed amount to a percentage of premium

    34. Tax Issues A host of tax reform proposals were made during the listening sessions. The Incentives for Agriculture Task Force, chaired by Senator Roy Dyson and Representative Rudy Cane, had a significant package of tax reforms come out of their efforts but because of budget issues nearly all of these proposals did not pass this year. When economic prosperity returns, the work done by this Task Force should be brought to the forefront.

    35. Thank You!

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