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NEWS from the Office of the New York State Comptroller
Contact: Press Office 518-474-4015

More State Investment and Policies Can Create New Opportunities in Hudson Valley Which Saw Unique Gains

DiNapoli: Agriculture Report Reveals Economic Growth and Challenges Facing New York Farms

November 14, 2024

The critical role farms play in New York cannot be overstated, both as an economic engine for their communities and an essential part of our food supply system. This is especially true in the Hudson Valley where sales of farm products topped $300 million in 2022. The region also countered statewide trends, seeing growth in both the number of farms and in farmland in some counties.

Access to fresh, healthy food also adds to the quality of life in the state, but this local food supply was put to the test during the pandemic, and there are ongoing threats to this industry as outlined in a new report released today by New York State Comptroller Thomas P. DiNapoli.

“New York’s diverse farms are an essential part of the state’s economy, but there are increasing challenges that are changing the agricultural landscape,” DiNapoli said. “Volatile commodity prices, labor pressures and extreme weather are adding to the unpredictability of farming that is contributing to the consolidation and the loss of farms. Policymakers must consider the ways in which state programs and policies affect this sector.”

DiNapoli’s report analyzed recent economic and industry data, including the 2022 United States Department of Agriculture Census released this year. It provides a comprehensive breakdown of farming across upstate New York along with Long Island and New York City. The report includes an analysis of state programs and tax benefits for farmers.

Some of the important findings for the Hudson Valley: 

  • There were 2,280 farms in the Hudson Valley in 2022, a 2% increase from 2017 as both Ulster and Rockland Counties saw a rise in the number of farms. In comparison, the state as a whole lost 8% of its farms during the same timeframe. 
  • There were 307,848 acres of farmland in the region in 2022. This was a 3% decrease from 2017, while Ulster County’s acreage increased by 24%. 
  • Hudson Valley farms generated nearly $301 million in agricultural sales in 2022. 
  • The region leads the way in several commodities. Orange County is the largest producer of Christmas trees in the state. While Dutchess County ranks first for sales of “other animals and products,” which include honey, bison and equine. And Ulster County is second in the state for growing fruits, tree nuts and berries. 
  • Ulster County is sixth in the state for direct to customer, local retail, and value-added sales. 

Statewide, agritourism and recreation in 2022 saw the largest increase in farm income, a 78% jump since 2012. In 2022, New York’s farms paid a total of $6.2 billion in expenses, an increase of $1.9 billion (42.8%) from 2017. In 2022, hired labor expenditures grew by 68%, far surpassing the growth in other categories.

Development pressure remains high. The conversion of farmland to other uses, particularly residential, commercial or industrial, could prevent its use for farming in the future. This includes 1,728 acres located in agricultural districts throughout New York classified as solar electric generation facilities. 

While agriculture faces challenges identified in the report, there are opportunities to support farms in the Hudson Valley and across New York. DiNapoli recommends the state: 

  • Provide additional support for direct to customer or direct to institution marketing, to help farmers increase the share of New York produced food sold in the state. 
  • Support research and extension services for the development and adoption of climate change resistant crops and measures to mitigate the effects of extreme weather events and hard to predict changes in seasonal weather patterns. While the state has adopted programs to protect farmland, it should continue to evaluate the efficacy of these policies in siting of renewable energy facilities on lands other than productive farmland. 
  • Promote supportive policies for new farmers that include training programs.

Report
A Profile of Agriculture in New York State