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Published: 20 November 2018 20 November 2018

Grant County Commission holds combination work and regular meeting session 111318, part 2

[Editor's Note: This is part two of the combination work and regular sessions on Nov. 13, 2018. It covers public input and a value of agriculture economics in Grant County report.]

By Mary Alice Murphy

Following the regular monthly report by Gila Regional Medical Center, the Grant County Commission at its combination work session and regular meeting on Nov. 13, 2018, heard public input from Glenn Griffin.

"I'm here to talk about the wildlife services contract you approved in July," Griffin, a county resident, said. "We've come a long way. Congratulations to the commissioners on getting a report on wildlife services. It's no longer a blank check, but the report raised more questions. It needs to be more specific. Coming from a former employer trying to make a profit, I am asking if the wildlife person, Brandon Jones, is an employee or a contractor. I don't know the answer. Does he have an office, a vehicle, a phone?"

He pointed out that on the second page of the report it didn't show where the work task responses were and who and where the cooperators were. "There were 46 work task responses. It cost $446.52 per squirrel. Were they trapped, shot or poisoned or were non-lethal means used? In July, commissioners voted on and approved that the methods used would be in the report. If he worked 2,000 hours in the year, that's $41 an hour. Does he work for other counties? How many hours did he work? I would appreciate the answers at the next meeting."

Commission Chairman Billy Billings said he had many of the same questions and appreciated receiving them in written form, so he could follow up on the issue.

The next agenda item addressed was a presentation regarding the value of agriculture economics in Grant County. Presenting were Dusty Hunt of the Grant Soil and Water Conservation District and New Mexico University's College of Agricultural, Consumer and Environmental Sciences member Nick Ashcroft. Also answering questions was Marshal Wilson of the New Mexico Department of Agriculture.

Hunt said he wanted to present nine action items that agriculture contributes to.
"We produce a tangible product in a renewable manner," he said. "But we don't know how to show what we do, so we asked Dr. Ashcroft to present to you."

"I wanted to do a simple explanation of the economics of agriculture," Ashcroft said. "These statistics are from an IMPLAN model, which originated with the Forest Service as an economic model, but since has become private. The model is used to look at the full economic impacts of a change in the economy. We have all the federal reports and we look at the total impacts. We have it for every industry in Grant County. This is your economy. These are the best numbers we can put together. Every part is important because it is all interlinked."

He said base industries were determined by dividing the total employment by the number of employees in each industry. "We look at base industries as ones that promote local economic growth. Industries that export bring in new dollars to the community. The base industries in Grant County are mining, agriculture, retail, accommodations and food service, and state government. Mining exports 97.5 percent of what it produces at $732 million. Agriculture exports $22 million; retail $11 million and accommodations and food services, $8 million. State government exports zero dollars."

He also talked about multipliers for each of the base industries in the county. "For every dollar produced in the community, a portion remains in the county. Mining has a multiplier of 1.2, which means $.20 stays in the community, but the sheer numbers make it an important base industry. The multiplier for agriculture is 1.7. Because state government provides no exports, I blanked it out. Government is external to the economy. The multiplier creates supply and demand. If you pull labor out, the base industries provide the cost of living, which supports local businesses and disposable income. Most of the cost of living goes to local entities. If you shrink the base industries, you will lose their support industries and some labor will be lost. You will have less of everything. Every industry is important to the economy. If you weaken the base you destabilize the whole pyramid. It's why I used the pyramid shape, because everything supports the others. If you expand and grow the base, industries increase, and you support them and grow labor. Each industry has expenditures. For ranching, it's feed for the cattle, fuel, oil, labor, renting land, grazing fees, utilities and more. A lot of industries are connected to the base industries."

Another explanation of a multiplier, Ashcroft said, is adding together the parts of the dollar that are spent locally and remain in the state. "If you spend $1 on gas, $.60 is going out, but 40 cents stays in the economy, paying labor, then 20 cents may stay and 20 cents may leave." He said before a dollar is totally expended it may change hands six times until it reaches the final turnover and leaves the community.

Wilson of the NMDA said he is a natural resource and policy analyst for the agency. "I feel agriculture plays a vital role in sustainable natural resources. Ranchers take the forest and turn the grazing land into a taxable asset. The assets, the cattle, eat the fine fuels, which provides fire protection. The livestock industry is a heavy asset business. The average taxable asset base is a little over $1 million. For every $1 in taxes collected on agriculture produced land, farmers and ranchers receive about 37 cents of it back in infrastructure and services. Contrast that to an urban resident who receives about $1.19 back for every dollar sent out. We are in support of the agricultural industries and their natural resource management." He said the statistics came from the American Farmland Trust.

[Editor's Note, with factual emphasis added in bold:  In the American Farmland Trust document, it states in its Costs of Community Services Studies: 

"COCS studies help address three claims that are commonly made in rural or suburban communities facing growth pressures:

1. Open lands—including productive farms and forests—are an interim land use that should be developed to their “highest and best use.”

2. Agricultural land gets an unfair tax break when it is assessed at its current use value for farming or ranching instead of at its potential use value for residential or commercial development.

3. Residential development will lower property taxes by increasing the tax base.

"While it is true that an acre of land with a new house generates more total revenue than an acre of hay or corn, this tells us little about a community’s bottom line. In areas where agriculture or forestry are major industries, it is especially important to consider the real property tax contribution of privately owned working lands. Working and other open lands may generate less revenue than residential, commercial or industrial properties, but they require little public infrastructure and few services.

"COCS studies conducted over the last 20 years show working lands generate more public revenues than they receive back in public services. Their impact on community coffers is similar to that of other commercial and industrial land uses. On average, because residential land uses do not cover their costs, they must be subsidized by other community land uses. Converting agricultural land to residential land use should not be seen as a way to balance local budgets.

"The findings of COCS studies are consistent with those of conventional fiscal impact analyses, which document the high cost of residential development and recommend commercial and industrial development to help balance local budgets. What is unique about COCS studies is that they show that agricultural land is similar to other commercial and industrial uses. In every community studied, farmland has generated a fiscal surplus to help offset the shortfall created by residential demand for public services. This is true even when the land is assessed at its current, agricultural use. However as more communities invest in agriculture this tendency may change. For example, if a community establishes a purchase of agricultural conservation easement program, working and open lands may generate a net negative.

"Communities need reliable information to help them see the full picture of their land uses. COCS studies are an inexpensive way to evaluate the net contribution of working and open lands. They can help local leaders discard the notion that natural resources must be converted to other uses to ensure fiscal stability. They also dispel the myths that residential development leads to lower taxes, that differential assessment programs give landowners an “unfair” tax break and that farmland is an interim land use just waiting around for development.

"One type of land use is not intrinsically better than another, and COCS studies are not meant to judge the overall public good or long-term merits of any land use or taxing structure. It is up to communities to balance goals such as maintaining affordable housing, creating jobs and conserving land. With good planning, these goals can complement rather than compete with each other. COCS studies give communities another tool to make decisions about their futures."]

Hunt then presented his action plan, which had been developed with input of the Extension Office, the Copper Cowbelles and the Grant County Cattlegrowers. He recommended the goals and action items be added to the Grant County Comprehensive Plan to promote the agriculture and ranching industries.

The recommended action items are:
1) Recognize and support the capability of agricultural businesses to contribute to the long-term social, economic and cultural diversity and stability of local communities and help to preserve the rural landscape, cultural heritage and long-standing traditions.
2) Consider agriculture in determining whether and why certain improvements and investments should be made.
3) Promote responsible and efficient agricultural use of natural resources.
4) Support NMSU Grant County Extension Service that provides applied agricultural research and programs that enrich youth activities and promotes occupations that can remain in the rural areas.
5) Support and promote the efficient and responsible use of livestock production on private lands, US Forest Service, Bureau of Land Management and State lands.
6) Continue coordination with the USFS, BLM, State Land Office and State Forestry on natural resource management for improving dependable supplies of timber and fuelwood and other forest products on a sustained yield basis.
7) Support farmer and ranchers to improve management of water use and irrigable water acres; and support those practices that will improve water use efficiencies.
8) Support production of hay, wine vineyards, apple orchards, corn, chili; cattle, sheep, goats, hogs, dairy, poultry and bee keeping; and commercial logging, fuelwood, pinyon, Christmas trees and other forest products and promote value-added products.
9) Promote Grant County agricultural products to help producers find additional markets.

Commissioner Harry Browne congratulated Hunt on being named Best Conservationist. "Do you feel there is a good rationale for special valuation for grazing land and farm land?"

Ashcroft answered. "The special valuation is based on the potential income. For instance, pecan trees are taxed at a higher rate. Out here we have one head of livestock per section, whereas in other areas, they may have one head per acre. That's why the difference in valuation. The NMDA presents a report every year."

Browne said the assessor tells him that the assessment of $5.40 per acre hasn't been changed since 1934.

Wilson said the report is valuation is on the livestock and is based on market value.

"My question is about the land," Browne said. "What is the rationale on the difference?"

Ashcroft said it is based on the production value of the land and it takes more land for grazing in the arid Southwest.

The next article will go into the financial reports and the business on the agenda.