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

SPONSOR Tripp

ORIGINAL DATE

LAST UPDATED

1/19/2007

HB 86

SHORT TITLE Farmers Market Nutrition Enhancement Program

SB

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$250.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 22

Duplicates Senate Bill 237

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (NMHED)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

House Bill 86 appropriates $250,000 from the General Fund to the Board of Regents of New

Mexico State University for expenditure in FY 2008 for the New Mexico Department of

Agriculture to support the Farmers’ Market Nutrition Enhancement Program.

FISCAL IMPLICATIONS

The appropriation of $250,000 contained in this bill is a recurring expense to the General Fund.

A sum of $71,300 was appropriated for this purpose in Chapter 34, Laws of 2005 (Senate Bill

190.)

Any unexpended or unencumbered balance remaining at the end of FY 2008 will revert to the

General Fund.

House Bill 86 – Page

2

SIGNIFICANT ISSUES

There are farmers’ markets in the following communities (

www.farmersmarketsnm.org

):

The NMHED analysis states that the farmers’ market project was among the NMSU priorities as

submitted to NMHED. However, the priorities as approved by the NMSU Board of Regents

(December 5, 2006 email) makes no specific reference to a Farmers’ Market Nutrition

Enhancement Program and such a program has not been recommended by the Higher Education

Department.

The DOH analysis indicates House Bill 86 is supported by the New Mexico Task Force to End

Hunger. Promotion and further expansion of New Mexico’s farmers’ markets will make fresh

produce readily available to the Commodities Supplemental Food Program (CSFP) participants.

Increased fresh fruit and vegetable intake is one of the key messages that the Department of

Health encourages through the “5-A-Day" and the “Fruits & Veggies – More Matters" programs

to help prevent chronic diseases such as coronary heart disease, some cancers, obesity, and

osteoporosis.

The Farmer’s Market Nutrition Program (FMNP) of the Women, Infant and Children (WIC)

Program of DOH has been a source of predictable revenue during the growing season at 34

Farmers’ Markets throughout New Mexico. These farmers’ markets provide $28.00 worth of

fruits and vegetables monthly to WIC enrollees. Many small farmers have reported that retail

sales through the WIC Farmer’s Market checks help them profit and stay in business.

Promotion

House Bill 86 – Page

3

and further expansion of New Mexico’s farmers’ markets to the CSFP participants may increase

the economic impact to Farmers’ Markets and local growers.

The Executive budget recommendation includes funding for the following initiatives:

1. Healthy Kids/Healthy Economy $965,500

2. Farmers’ Market Nutrition Program $172,400

3. Capacity Building for Farmers Markets $103,500

4. NM Produce Food-Bank $758,600

ADMINISTRATIVE IMPLICATIONS

The NM Department of Agriculture has administered the funding provided in previous years for

this purpose. No significant administrative impact is anticipated.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 86 is related to House Bill 22 which includes a $150,000 appropriation for a similar

purpose.

House Bill 86 duplicates Senate Bill 237.

BM/csd