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F I S C A L I M P A C T R E P O R T

SPONSOR McSorley

DATE TYPED 01-25-05 HB

SHORT TITLE Promote and Develop Farmers’ Market

SB 276

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$75.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

Duplicates HB70

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture

SUMMARY

Synopsis of Bill

Senate Bill 276, Making An Appropriation To Provide Promotion And Development For New

Mexico’s Farmers’ Markets, appropriates $75,000 from the general fund to the Board of Regents of

New Mexico State University (NMSU) for the New Mexico Department of Agriculture (NMDA)

program to promote and develop New Mexico’s farmers’ markets.

Significant Issues

NMDA indicates that 38 farmers’ markets currently operate in the state. Collectively, these markets an-

nually generate between $3 and $4 million in sales, and benefit between 700 and 800 farmer and rancher

participants. The appropriation would facilitate the promotion of existing farmer’s markets on a statewide

basis, as well as fund the development of additional markets. The department suggests three principal

benefits are associated with this program:

Senate Bill 276 -- Page 2

•

To provide additional sales outlets for small-scale farmers.

•

To increase marketing and promotional opportunities for New Mexico farmers and ranchers.

•

To encourage participation, attendance, and sales of New Mexico products and produce at farm-

ers’ markets.

FISCAL IMPLICATIONS

The appropriation of $75,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

NMDA would be the pass-through agency for this appropriation and would retain oversight of

the program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation for NMSU in the General Appropriations Act.

Duplicates HB70.

OTHER SUBSTANTIVE ISSUES

This request for funding was not submitted to the Commission on Higher Education (CHE) by

the Board of Regents of NMSU, and, accordingly, was not reviewed by the CHE. This program

received a $50,000 general fund appropriation in FY04; however funding was not continued in

FY05.

BFW/lg