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

SPONSOR Grubesic

DATE TYPED 02-25-05 HB

SHORT TITLE Santa Fe Farmers’ Market

SB 904

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$120.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

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

Duplicates HB386

Relates to HB70, SB276, SC576, and HB278

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

New Mexico Department of Health (DOH)

No Responses Received From

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 904 – Making an Appropriation for the Santa Fe Farmers’ Market – appropriates

$120,000 from the general fund to the Board of Regents of New Mexico State University for ex-

penditure in FY06 to support ongoing efforts by the New Mexico Department of Agriculture to

plan, establish programming and continue to develop an adequate revenue stream for a perma-

nent site in the Santa Fe railyard for the Santa Fe Farmers’ Market. Any unexpended or unen-

cumbered balance remaining at the end of FY06 shall revert to the general fund.

Senate Bill 904 -- Page 2

Significant Issues

DOH indicates that the Santa Fe Farmers’ Market does not currently have a permanent location

although it is a vital link in the promotion and marketing of farming in New Mexico, and pre-

sents a number of benefits to both the farmer and the public:

•

it helps farmers earn enough income to continue farming;

•

it helps create a stronger client base for the existing farmers’ markets throughout

the state; and

•

it helps provide access to high quality, healthy foods.

NMDA notes that this bill will enhance the establishment of a farmers’ market showcase – which

will greatly benefit small-scale producers in northern New Mexico – by creating a year-round

retail outlet for fresh and processed products, educational and/training facilities and office space

for related support organizations. NMDA further notes:

•

Currently the Santa Fe Farmers’ Market has over 200 vendors.

•

The Santa Fe Farmers’ Market continues to be in the top ten farmers markets in the

United States drawing 5000 plus customers on Saturday with yearly sales exceed-

ing $2 million.

•

The Santa Fe Farmers’ Market serves as the primary retail outlet for small-scale

growers in northern New Mexico.

•

The market increases local food supply and production.

•

The Santa Fe Farmers’ Market Institute has $1.4 million in federal and private finds

committed for the construction of the facility. Design and blueprints have been de-

veloped and submitted to the City of Santa Fe for approval.

This project is not included in the CHE 2005-2006 Higher Education Funding Recommendation.

FISCAL IMPLICATIONS

The appropriation of $120,000 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

NMSU would retain oversight of the program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

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

Senate Bill 904 -- Page 3

Duplicates HB386 in that HB386 also seeks to appropriate $120,000 from the general fund to the

Board of Regents of New Mexico State University for expenditure in FY06 to support ongoing

efforts by the New Mexico Department of Agriculture to plan, establish programming and con-

tinue to develop an adequate revenue stream for a permanent site in the Santa Fe railyard for the

Santa Fe Farmers’ Market.

Relates to HB70 and SB276 in that both HB70 and SB276 seek to appropriate $75,000 from the

General Fund to the Board of Regents at New Mexico State University for expenditures to pro-

mote and develop New Mexico’s farmers’ markets.

Relates to HB278 in that HB278 also seeks to appropriate $120,000 from the general fund to the

Board of Regents of New Mexico State University for expenditure in FY06 to support ongoing

efforts by the New Mexico Department of Agriculture to plan, establish programming and con-

tinue development of an adequate revenue stream for a permanent site in the Santa Fe rail yard

for and to operate the Santa Fe Farmers’ Market. (NOTE: SB904 and HB386 do not include the

language “institute,” as included in HB278)

Relates to SC576 in that SC576 seeks $900,000 to plan, design, construct and equip a facility for

the farmers’ market in Santa Fe.

OTHER SUBSTANTIVE ISSUES

DOH indicates that the proposed appropriation of $120,000 would assist the Santa Fe Farmers’

Market Institute in carrying out its mission of promoting, fostering and encouraging small farm

and ranch operations and other rural land-based operations. The first specific project of the Insti-

tute is the construction of a building in the Santa Fe Railyard Development area, which would

serve as the permanent home of the Santa Fe Farmers’ Market. Additionally, DOH notes:

•

Since its inception 35 years ago, the Santa Fe Farmers’ Market has experienced a

579 percent rate of growth and has operated in five different locations. The current

location is temporary, and by summer 2006 the market will once again be forced to

seek another site. A feasibility study and business plan commissioned by the Santa

Fe Farmers’ Market Institute found that at the peak of the 2003 summer season,

8,000 customers visited the Santa Fe Farmers’ Market during a busy Saturday

morning.

•

The study also found that consumers at the Santa Fe Farmers’ Market spent ap-

proximately $1.75 million during a period of forty market days in the 2003 season,

purchasing directly from market vendors.

1

Without the Santa Fe Farmers’ Market,

area farmers will have minimal outlets to sell their produce and agriculture and will

not have a major venue that allows them to sell their items directly themselves.

•

Smaller, independently managed farms using environmentally sound agriculture

practices can be more productive and efficient in the use of scarce land than corpo-

rate farms. A 1992 U.S. Agriculture Census showed that, based on total output per

unit area, small farms produce over ten times more dollar output per acre than do

1

DOH cites personal communication with Mikki Anaya, Director of Operations, Santa Fe Farmers’ Market, for

these data

.

Senate Bill 904 -- Page 4

the largest farms. Small farming operations can create greater biodiversity and

cause less environmental damage than monoculture crops. Localized food produc-

tion means more nutritious food, more jobs, major energy savings and a healthier

population. From an agricultural or land use perspective, increased farming means

an increase in fertile land.

•

There are currently 37 farmers’ markets in New Mexico, representing 700 small in-

dependent fruit and vegetable farmers. Farmers’ markets can provide positive eco-

nomic and health benefits to the communities in which they operate. A significant

social determinant of health status is poverty. For some farmers and ranchers in

northern New Mexico, their sole source of income is derived from the sale of their

agricultural products. Funding which would stabilize the Santa Fe Farmers’ Market

could provide economic security that may eventually result in improved health out-

comes.

•

Nationally – and in New Mexico – obesity is on the rise. Two separate studies

found that obesity has been shown to have a more substantial negative effect on

chronic health conditions and health expenditures than smoking, heavy drinking or

poverty.

2

Improved diet is highly correlated with a lower incidence of obesity and

chronic disease. Over time, improved health can be directly correlated to reduced

numbers of dollars spent on health care. Funding that would provide a permanent

home to the Santa Fe Farmers’ market will help provide continued access to the va-

riety of healthy foods the market has to offer.

BFW/lg

2

American Journal of Clinical Nutrition. 2004; 79:379-84; and International Journal of Obesity, 2003; 281-86.