Committee agrees to add forestry to proposed farm disaster fund; several details left for board

A legislative committee on March 25 moved to include forestry operations in a draft fund intended to help farms recover from extreme weather and similar losses, and directed staff to rename the proposal the Farm and Forestry Operations Security Special Fund.

The change "you're gonna see is the addition of and forestry operations," said Mike, a staff member, summarizing edits made to the draft. The committee did not adopt final language on award caps, enrollment fees or quarterly application timing; members instead discussed leaving many of those implementation choices to a review board to be established by the bill.

Why it matters: The bill creates a permanent state special fund and an awards process to provide payments for unreimbursed, uninsured or otherwise uncovered losses at farms and, now, forestry operations. Members and witnesses raised equity and practicability concerns — for example, how to set maximum awards so small operators are eligible while large businesses do not capture most funds, and whether the fund should require applicants to opt in by paying a registration fee.

In committee discussion, staff noted program mechanics recommended by the Joint Fiscal Office. The draft now allows beneficiary payments rather than formal grants, a choice JFO advised to reduce administrative conditions on payments. The draft also included language that awards may cover up to 50% of "unreimbursed, uninsured, or otherwise uncovered losses" and that the secretary may set criteria using annual net income as a factor. Mike explained that JFO suggested a cap expressed as "up to a maximum award of 5% of the undesignated and unreserved funds in the farm and forestry operations security special fund per qualified applicant," with committee members debating whether to restore a per-applicant annual cap of $150,000 discussed earlier in drafting.

Members pressed for clarity on who could apply. The bill would define "forestry operation" by reference to existing statutory language used by the Department of Forests, Parks and Recreation, and would not automatically exclude subcontractors. "There's no limitation as to who can apply if the subcontractor experiences losses because of a eligible weather event," one staff exchange noted; committee members asked whether custom harvesters, trucking subcontractors or a farmer producing firewood as a separate business should be eligible.

Committee members also debated what counts as an eligible "fire event." "If the idea is it's supposed to be an adverse weather event and, like, if it's lightning strike fire event, that that would be relevant," Representative Buck said, urging a clearer qualifier than simply "fire event." Others suggested the statute should signal that the board consider wildfires and weather-created fire events but leave case-by-case decisions to the board.

Other operational issues discussed

- Administration and oversight: The draft designates the secretary of agriculture to administer the fund and establishes a special fund review board. The committee discussed board composition, including adding two forestry operators and a Department of Forests, Parks and Recreation representative. Members discussed whether board members who previously received relief funding should serve on the board and whether alternates are needed to preserve quorum when conflicts arise.

- Payments and documentation: The bill removes a Schedule F filing requirement and replaces it with a streamlined application requiring a year-end report of farm or forestry operation income and expenses to accommodate operations that do not file Schedule F.

- Timing and quarterly awards: The draft allows accepting applications and awarding payments on a quarterly basis, and the fund is drafted as a carryover fund so unspent money rolls into the next fiscal year. Committee members debated whether quarterly distribution would slow payments after a large event and considered alternatives such as holding applications until funds become available without requiring reapplication.

- Funding sources and donations: Members discussed potential funding mechanisms, including dedicating a narrow, discrete tax or a portion of existing farm-related receipts, and the possibility of private donations. Staff noted that large donations generally require Joint Fiscal Committee approval before funds are accepted into state accounts.

What was decided

Committee members signaled agreement to include forestry operations in the bill as drafted and to request the title change to the Farm and Forestry Operations Security Special Fund. Members did not finalize caps, an opt-in fee, or quarterly disbursement mechanics; instead they gave direction to leave several implementation decisions to the review board and to return with language after consultation with JFO and affected stakeholders.

Quotes

- "The most numerous change you're gonna see is the addition of and forestry operations," Mike, staff member, said when summarizing edits.

- "If the idea is it's supposed to be an adverse weather event ... if it's lightning strike fire event, that that would be relevant," Representative Buck said, urging a clearer definition of eligible fire events.

- "It would basically be saying ... 5% of whatever dollar amount is sitting there that has already been claimed," a member summarized of the proposed JFO cap language.

Ending

Committee members scheduled additional committee time and testimony; staff said the committee would revisit outstanding questions, including the opt-in fee concept, maximum award language, and whether to require quarterly award windows. The committee is expected to reconvene for further consideration and to take testimony on related bills at the next committee meeting.