The legislation is aimed at giving Wisconsin’s farming industry a boost at a time when bankruptcies are decimating its ranks — especially among dairy producers.
“We think they will help farmers transition into the future,” Rep. Dave Considine, D-Baraboo, told reporters Tuesday. “The three bills strengthen opportunities for Wisconsin farmers at every stage of their careers.”
A total of $1 million annually would go toward the new programs in five years — building up to that figure gradually.
Under one bill, $224,000 would pay for two new employees within the University of Wisconsin Center for Dairy Profitability in Madison to help farmers with financial decisions related to the transfer of their operations to a new generation or new owners.
Gene Larsen, who owns a farm near the Baraboo River in Sauk County, said the process is more difficult for farmers than in other industries because of the difficult nature of buying a farm’s expensive assets while also having enough cash to operate. Larsen said the process of transferring the farm from his father to him and now to his son has been in place for about 40 years.
“The succession planning process for farmers is extremely important,” he said. “It’s absolute necessity for the continuance of the traditional Wisconsin multigenerational family farm.”
Another bill would set aside $250,000 annually for the state agriculture agency, which would provide up to $50,000 for producers who want to start a new operation on no more than 50 acres. The grants also would be awarded to producers who want to add a new product to their existing operation or want to pay down their debt after adding a new product.
The measure could help small dairy farms that have been hit hard in recent years. Though Wisconsin’s agricultural economy has been growing in recent years, small dairy farms have declined sharply with losses in the thousands.
Beginning farmers still paying off student loans would receive up to $30,000 over five years from the state to go toward the debt under a third bill. By 2024, the state would set aside $600,000 annually for the program under the legislation.
The new legislation comes at a time when Wisconsin leads the nation in farm bankruptcies — a distinction fueled by a rapid rate of closures by dairy farms as milk overproduction and failing export markets strain the producers’ livelihood.
Considine said the package of bills — while not specifically designed for dairy producers — would have a positive effect on the downward trend. He said Wisconsin dairy farmers bucking the trend have planned their handoffs to a new generation.
“They’re only there because of successful succession planning,” he said. “The diversity we are encouraging is going to help agriculture — there are a lot of grass-fed, pasture-fed milking right now for Organic Valley and other places so there are ways we can diversify.”
The bills are sponsored by both Democrats and Republicans — giving them a shot at finding support among GOP legislative leaders and Democratic Gov. Tony Evers.
Kit Beyer, spokeswoman for Assembly Speaker Robin Vos, said Vos is reviewing the package.
Aides to Evers and Senate Majority Leader Scott Fitzgerald did not immediately have a reaction to the legislation.