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

SPONSOR Garcia, Mary Jane M. DATE TYPED 02-07-05 HB

SHORT TITLE Small Farm Economic Development Initiative

SB 471

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

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

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

No Responses Received From

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 471 – Making an Appropriation for the Small Farm Economic Development Initia-

tive of the New Mexico Department of Agriculture – appropriates $100,000 from the general

fund to the Board of Regents of New Mexico State University for expenditure in FY06 to pay for

the New Mexico Department of Agriculture’s Small Farm Economic Development Initiative.

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

eral fund.

Senate Bill 471 -- Page 2

Significant Issues

NMDA indicates that the focus of this initiative is the Hispanic Farmers and Ranchers Coopera-

tive, a nonprofit 501C organization based in Las Cruces, New Mexico. Utilizing the previous

year’s funding, this organization has successfully organized small scale producers, provided de-

velopment and marketing support, developed a marketing plan, and implemented produce (spe-

cialty crop) and livestock projects.

NMDA further notes that the success of the project has generated participation from more small

scale producers resulting in a need for more resources, and that NMDA has served as the custo-

dian for all state funds received by the organization and also worked to provide technical and

marketing support.

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

FISCAL IMPLICATIONS

The appropriation of $100,000 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.

BFW/njw