This article was underwritten in part by the Mickey Flacks Journalism Fund for Social Justice, a proud, innovative supporter of local news. To make a contribution go to sbcan.org/journalism_fund.
Farmers across California received welcome news on September 27 after Governor Newsom signed a bill extending the Farmer to Food Bank tax credit until 2032. The goal: Help farmers save money and get food to people in need.
Here’s how the tax credit works: Farmers who donate produce, dairy, meat, beans, and other items to food banks and document their donations can reduce their taxable income at the year’s end. The 15 percent credit, which started in 2011 and has been renewed twice before, would have ended in January. Senator Jerry McNerney (Democrat) authored this year’s bill that extends the credit, along with Senator Marie Alvarado-Gil (Republican) and Senator Laura Richardson (D).
Foodbank of Santa Barbara County CEO Erik Talkin said the tax credit’s extension could help the organization expand its Farms to Foodbank program. The 18-month-old program came about after the U.S. Department of Agriculture (USDA) canceled its Local Food Purchase Assistance Cooperative Agreement Program, which paid small farms upfront for food that went to local food banks.
Co-owner of Dare 2 Dream Farms Megan Raff | Credit: Elaine Sanders
Since the start of the Foodbank’s program, Talkin said, it’s gathered more than 718,000 pounds of local produce and raised more than $1 million to support the program.
Programs like the Foodbank’s play an important role for small farmers by providing payment upfront. By its nature, the state-level tax credit requires farmers to wait until filing their annual taxes to see financial gain for their businesses.
Megan Raff owns Dare 2 Dream Farm, a 40-acre, family-owned farm, with her husband in Lompoc. She said that while the credit is a good thing and could reduce food waste, especially for larger farms, margins are tight for small farmers, and they may not be able to wait to get paid for their food.
That’s why, Raff said, the USDA’s Local Food Purchase Assistance Cooperative Agreement Program filled an important role in supporting small farms. In June, California voted to fund a statewide version of the program for one year, though details on how the program will operate on the state level are still unclear.
As for the state-level tax credit, other nonprofits working to reduce food insecurity may qualify as food banks. The nonprofit Veggie Rescue said it’s currently evaluating whether the tax credit would apply to them. Veggie Rescue collects excess produce from farms, backyards and businesses and connects it to nonprofits who can use the food to feed people. Veggie Rescue Executive Director Eryn Shugart told the Independent that Veggie Rescue is growing. Last year, she said, it collected almost three-fourths of a million pounds of donated food to deliver to folks in need.
News of the tax credit comes at a time when thousands of people throughout California are losing federal assistance to buy groceries. Earlier this year, changes to SNAP (a k a CalFresh) tightened work requirements and made refugees ineligible. Across the state, an estimated 337,710 people have lost benefits, according to the research institute Center on Budget and Policy Priorities, a left-leaning research organization. In Santa Barbara County, about 53,000 individuals use SNAP benefits, including a little under 20,000 children.
Dining and Cooking