Date: 01/18/2012

Final
Department of Agriculture SMART Act Hearing

COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES

Votes: View--> Action Taken:
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07:43 AM -- Department of Agriculture SMART Act Hearing

Commissioner Salazar described the state of Colorado's agriculture economy. He explained that Colorado agricultural exports increase 20 percent in 2011. Agriculture supports nearly 170,000 jobs in the state and contributes more than $40 billion to state's economy. He estimated that net agricultural income for 2011 rose nearly $300 million to $1.66 billion. He estimated that 2012 will also be a good year for Colorado's agricultural economy due to new trade agreements, improved market access, and a weaker dollar that will help exports (Attachment A).

120118 DeptofAGAttachA.pdf

07:49 AM

Commissioner Salazar identified Department of Agriculture staff attending the meeting and the described the functions of the divisions within the Department of Agriculture including the Animal Industry Division; Brands Division; Colorado State Fair; Conservation Services; Inspection and Consumer Services; Markets Division; and the Plant Industry Division.

07:53 AM

Tom Lipetzky, Director of the Markets Division, responded to questions from the committee about opportunities to increase hop production in Colorado.

07:54 AM

Commissioner Salazar summarized the Department of Agriculture's FY 2012-13 budget request. He explained that that the department is requesting a budget of $39.1 million and 279.4 FTE for FY 2012-13, including $5.8 million in General Funds, $28.5 million in cash funds (primarily fees); and $3.9 million in federal funds. General Fund support for the department has decreased by approximately 50 percent since 2002. He also explained that the department is requesting to fully cash fund the Inspection and Consumer Services Division. The division has been cash funded for six of the last nine years, which saved approximately $2.7 million in General Fund appropriations in FY 2010-11 and FY 2011-12. With continued cash funding of the division, $1.3 million will be saved during FY 2012-13. Commissioner Salazar responded to questions from the committee about the effect of fully cash funding the division on the agriculture industry.

08:01 AM

Mr. Lipetzky responded to questions from the committee about use of the Agriculture Management Fund to promote agriculture.

08:05 AM

Steve Bornmann, Division of Inspection and Consumer Services, responded to questions from the committee about General Fund and cash fund support for programs within the division.

08:09 AM

Mr. Lipetzky summarized the provisions of the Department of Agriculture's FY 2012 strategic plan that includes a mission statement, vision statement, and strategic priorities (Attachment B). He also described the results of a survey of the agriculture industry to determine the level of satisfaction with the department's performance. Mr. Lipetzky responded to questions from the committee about tracking of complaints by the department and responses to complaints as part of the strategic plan. He also explained how the department seeks to promote fuel production from agricultural products.

120118 DeptofAGAttachB.pdf

08:24 AM

Commissioner Salazar responded to questions from the committee about federal incentives for renewable energy production including corn-based ethanol production, opportunities to increase fertilizer production in Colorado, efforts to expand exports of Colorado agriculture products, and efforts to address animal diseases and pests.

08:38 AM

Commissioner Salazar identified efforts to implement the FY 2012 Strategic Plan and responded to questions from the committee about legislation to reduce regulation of the agriculture industry including legislation to repeal oversight of rendering facilities.

08:40 AM

Mr. Lipetzky responded to questions about proposed legislation to continue the Advancing Colorado's Renewable Energy (ACRE) program that promotes renewable energy production by agriculture. He also described the survey of users of the department's services and efforts to identify services that received the highest level of dissatisfaction.

08:50 AM -- Public Testimony

There was no public testimony

08:50 AM

The committee adjourned.