-
Subchapter 002: THE VERMONT WORKING LANDS ENTERPRISE PROGRAM
§ 4603. Legislative findings
The General Assembly finds:
(1) The report issued by the Council on the Future of Vermont indicates that over 97 percent
of Vermonters polled endorsed the value of the “working landscape” as key to our future.
(2) Vermont’s unique agricultural and forest assets—its working landscape—are crucial
to the State’s economy, communities, character, and culture. These assets provide
jobs, food and fiber, energy, security, tourism and recreational opportunities, and
a sense of well-being. They contribute to Vermont’s reputation for quality, resilience,
and self-reliance.
(3) Human activity involving Vermont’s agricultural and forestland has been integral to
the development of Vermont’s economy, culture, and image. Sustainable land use will
need to balance economic development demands with the other services the land provides,
many of which have economic benefits beyond the agriculture and forest product sectors.
Some of these benefits include clean air and water, recreational opportunities, ecosystem
restoration, scenic vistas, and wildlife habitat.
(4) The agriculture and forest product sectors are similar and share many of the same
challenges. There are potential benefits to be realized by the joining of these sectors
in development planning and coordination, making policy decisions, and leveraging
economic opportunities.
(5) The agriculture and forest product sectors provide renewable and harvestable products
that form the basis of Vermont’s land-based economy. The conversion of these raw commodities
into value-added products within our borders represents further economic and employment
opportunities.
(6) Vermont is in the midst of an agricultural renaissance and is at the forefront of
the local foods movement. Success has been due to the efforts of skilled and dedicated
farmers, creative entrepreneurs, and the strategic investment of private and public
funds.
(7) State investment in a given industry or economic sector is often essential to stimulate
and attract additional private and philanthropic investment. The combination of public,
private, and foundation support can create enterprise opportunities that any one of
them alone cannot. Grants issued as a result of 2011 Acts and Resolves, No. 52 helped
create jobs and economic activity in the agricultural sector. They also leveraged
private and foundation investments.
(8) Vermont’s land-based economy has proven to be a driver for Vermont’s ongoing economic
recovery.
(9) Value-added and specialty Vermont products are a growing source of revenue for Vermont’s
agricultural producers, many of whom have benefited from the existing infrastructure
requirements of commodity producers. Both export and instate markets are necessary
options for the agriculture and forest product sectors’ economic development.
(10) The Vermont brand is highly regarded both nationally and internationally. Forest management
is seen as crop management by those active in the forest product industry. An actively
managed forest is a healthy and productive one.
(11) Vermont’s agriculture and forest product sectors have not been perceived or treated
as businesses by the traditional business and lending communities. They often lack
available capital and financial package options that match their stage of development.
(12) Financial service and workforce development programs need to be customized to meet
the unique needs of Vermont’s agriculture and forest product sectors. Landowner education
and labor skills training are also important for future productive management of forestlands.
(13) Scale is an important determining factor for the successful development of businesses
that utilize Vermont’s agriculture and forest products. Other limiting factors include
labor and transportation costs, support services, resource base, and the regulatory
environment.
(14) Workers’ compensation, health care, energy costs, and regulatory requirements are
a major concern to the agriculture and forest product sectors. For example, workers’
compensation premiums for loggers may run as high as 48 percent of each dollar of
wages.
(15) The amount of land in Vermont is finite, and part of its community and economic value
is tied to the way it is used. Farmland and forestland that are developed for other
uses affect the future viability of remaining farms and forest enterprises.
(16) A forestland owner is often not the person actively engaged in the business of land
management, such as planning, harvesting, or marketing the raw product, whereas in
agricultural operations, the farmer often owns both the land and the business. Many
farm operations have woodlots that have traditionally been used for syrup, timber,
and firewood production.
(17) Vermonters’ perception of and support for local wood and forest products are not at
the same level as they are for local food. Public outreach and education efforts need
to be created to address the public’s perception of actively managed working lands
and the people who perpetuate them. Over the last decade, consumers of wood products
have become more interested in production and management methods, certification programs,
and the source of the raw materials.
(18) Vermont’s forest products industry has been in decline for many years, in part due
to rising costs, a poor housing market, and a lack of manufacturing. The total value
of the forest product industry has dropped from $1.8 billion to $1.3 billion since
2007. If wood chips were priced at the equivalent BTU replacement value of oil, they
would command a higher price. The number of active sawmills has also declined to fewer
than 20 today.
(19) The average age of Vermont’s farmers and loggers is over 55 years of age and the average
age of forestland owners is over 65. Attention needs to be brought to efforts that
will ensure intergenerational succession and lower those averages. Economically viable
farm- and forest-based operations are critical to that goal. “Legacy” skills such
as farming and logging are disappearing, as the children of those making a living
from those skills often aspire to different employment opportunities.
(20) Access to land is a challenge for many, especially younger, people who want the opportunity
to make a living from productive use of the land. Farm and forestland ownership is
often out of reach for young people who do not have some sort of assistance.
(21) The Vermont forest product sector contains approximately 7,000 jobs, and approximately
57,000 jobs are in Vermont’s food system.
(22) Rules for forest product enterprises need to reflect a balance between economic development
and responsible land use practices. There is a need to assess rules involving the
primary processing and transportation elements of the forest product sector.
(23) Seventy-six percent of Vermont’s 4.5 million acres is forested, 84 percent of which
is privately owned. Sustainable management of State-owned forestlands represents an
opportunity for private sector forest businesses.
(24) Forest product sector representatives have identified needs for their industry, including
market development, additional secondary processing facilities, lower energy and transportation
costs, and capital for growth enterprises as well as research and development for
new and improved value-added products that make use of Vermont’s forest resources.
Factors such as health care, labor, and energy policies in Canada contribute to the
northward flow of Vermont logs. Research is needed in order to develop strategies
that will help keep Vermont’s forest product sector competitive.
(25) Vermont’s Use Value Appraisal (Current Use) Program is critically important to every
component of Vermont’s agriculture and forest product sectors. It also helps keep
Vermont forestland productive and healthy through the requirement of active forest
management plans.
(26) Dairy enterprises remain Vermont’s leading source of agricultural revenues, with an
estimated annual economic impact of over $2 billion or approximately 75 percent of
total gross agricultural output.
(27) Recent grants and educational programs have started to address the lack of slaughter
and meat-processing facilities in the State; however, there continues to be a strong
need to further these efforts. (Added 2011, No. 142 (Adj. Sess.), § 1, eff. May 15, 2012; amended 2021, No. 105 (Adj. Sess.), § 144, eff. July 1, 2022.)
§ 4604. Legislative intent
It is the intent of the General Assembly in adopting this subchapter to create a working
lands enterprise board to administer a fund and develop policy recommendations to:
(1) Stimulate a concerted economic development effort on behalf of Vermont’s agriculture
and forest product sectors by systematically advancing entrepreneurism, business development,
and job creation.
(2) Recognize and build on the similarities and unique qualities of Vermont’s agriculture
and forest product sectors.
(3) Increase the value of Vermont’s raw and value-added products through the development
of in-state and export markets.
(4) Attract a new generation of entrepreneurs to Vermont’s farm, food system, forest,
and value-added chain by facilitating more affordable access to the working landscape.
(5) Provide assistance to agricultural and forest product businesses in navigating the
regulatory process.
(6) Use Vermont’s brand recognition and reputation as a national leader in food systems
development, innovative entrepreneurism, and as a “green” state to leverage economic
development and opportunity in the agriculture and forest product sectors.
(7) Promote the benefits of Vermont’s working lands, from the economic value of raw and
value-added products to the public value of ecological stability, land stewardship,
recreational opportunities, and quality of life.
(8) Increase the amount of State investment in working lands enterprises, particularly
when it leverages private and philanthropic funds.
(9) Support the people and businesses that depend on Vermont’s renewable land-based resources
and the sustainable and productive use of the land by coordinating and integrating
financial products and programs.
(10) Provide priority funding to agricultural and forest product enterprises. The priority
for funding agricultural and forest product enterprises is not intended to exclude
funding for technical assistance that directly supports enterprise development. (Added 2011, No. 142 (Adj. Sess.), § 1, eff. May 15, 2012; amended 2015, No. 39, § 22.)
§ 4605. Vermont Working Lands Enterprise Fund
There is created a special fund in the State Treasury to be known as the “Vermont
Working Lands Enterprise Fund.” Notwithstanding any contrary provisions of 32 V.S.A. chapter 7, subchapter 5:
(1) The Fund shall be administered and the monies in the Fund shall be expended by the
Vermont Working Lands Enterprise Board created in section 4606 of this title.
(2) The Fund shall be composed of monies from time to time appropriated to the Fund by
the General Assembly or received from any other source, private or public, approved
by the Board, and unexpended balances and any earnings shall remain in the Fund from
year to year.
(3) The Board shall make expenditures from the Fund consistent with the duties and authority
of the Board established by section 4607 of this title. (Added 2011, No. 142 (Adj. Sess.), § 1, eff. May 15, 2012.)
§ 4606. Vermont Working Lands Enterprise Board
(a) Creation. There is created a Vermont Working Lands Enterprise Board, which for administrative
purposes shall be attached to the Agency of Agriculture, Food and Markets.
(b) Organization of Board. The Board shall be composed of:
(1) the Secretary of Agriculture, Food and Markets or designee, who shall serve as chair;
(2) the Commissioner of Forests, Parks and Recreation or designee;
(3) the Secretary of Commerce and Community Development or designee;
(4) the following members appointed by the Speaker of the House:
(A) one member who is a consulting forester;
(B) one member who is actively engaged in maple production;
(C) one member who is actively engaged in on-farm value-added processing;
(D) one member who is actively engaged in manufacturing or distribution of Vermont agricultural
products; and
(E) one member with expertise in sales, marketing, or market development;
(5) the following members appointed by the Senate Committee on Committees:
(A) one member who is actively engaged in wood products manufacturing;
(B) one member involved in production agriculture whose primary enterprise is not fluid
milk;
(C) one member who is actively engaged in primary wood processing or logging;
(D) one member who is an agriculture and forestry enterprise funder; and
(E) one member who is a person with expertise in rural economic development;
(6) the following members appointed by the Governor:
(A) one member who is a representative of Vermont’s dairy industry who is also a dairy
farmer;
(B) one member who is a representative of Vermont’s forestry industry who is also a working
forest landowner;
(C) one member with expertise in land planning and conservation efforts that support Vermont’s
working landscape; and
(D) one member who is an employee of a Vermont institution engaged in agriculture or forestry
education, training, or research; and
(7) the following members, who shall serve as ex officio, nonvoting members:
(A) the Manager of the Vermont Economic Development Authority or designee;
(B) the Executive Director of the Vermont Sustainable Jobs Fund or designee; and
(C) the Executive Director of the Vermont Housing Conservation Board or designee.
(c) Member terms. The members designated in subdivisions (b)(4)-(7) of this section shall be appointed
to initial terms of one year for members appointed by the Governor, two years for
members appointed by the Senate Committee on Committees, and three years for members
appointed by the Speaker of the House. Thereafter, each appointed member shall serve
a term of three years or until his or her earlier resignation or removal. A vacancy
shall be filled by the appointing authority for the remainder of the unexpired term.
An appointed member shall not serve more than three consecutive three-year terms.
(d) Officers; committees. The Board may elect officers, establish one or more committees or subcommittees, and
adopt such procedural rules as it shall determine necessary and appropriate to perform
its work.
(e) Quorum; meetings; voting. A majority of the sitting members shall constitute a quorum, and action taken by the
Board may be authorized by a majority of the members present and voting at any regular
or special meeting at which a quorum is present. The Board may permit any or all directors
to participate in a regular or special meeting by, or conduct the meeting through
the use of, any means of communication, including an electronic, telecommunications,
and video- or audio-conferencing conference telephone call, by which all members participating
may simultaneously or sequentially communicate with each other during the meeting.
A member participating in a meeting by this means is deemed to be present in person
at the meeting.
(f) Compensation. Private sector members shall be entitled to per diem compensation authorized under
32 V.S.A. § 1010(b) for each day spent in the performance of their duties, and each member shall be reimbursed
from the Fund for his or her actual and necessary expenses incurred in carrying out
his or her duties. (Added 2011, No. 142 (Adj. Sess.), § 1, eff. May 15, 2012; amended 2015, No. 39, § 23.)
§ 4607. Powers and duties of the Vermont Working Lands Enterprise Board
(a) Duties. The Vermont Working Lands Enterprise Board is charged with:
(1) optimizing the agricultural and forest use of Vermont lands and other agricultural
resources;
(2) expanding existing markets and identifying and developing new profitable in-state
and out-of-state markets for food, fiber, forest products, and value-added agricultural
products, including farm-derived renewable energy; and
(3) identifying opportunities and challenges related to access to capital, infrastructure,
product development, marketing, training, research, and education.
(b) Powers. The Vermont Working Lands Enterprise Board shall have the authority:
(1) to design and conduct an ongoing public engagement process, which may include taking
testimony and receiving information from any party interested in the Board’s activities;
(2) to gain information through the use of experts, consultants, and data to perform analysis
as needed;
(3) to request services from State economists, State administrative agencies, and State
programs;
(4) to obtain information from other planning entities, including the Farm to Plate Investment
Program;
(5) to serve as a resource for and make recommendations to the Administration and the
General Assembly on ways to improve Vermont’s laws, rules, and policies in order to
attain the goals set forth in section 4604 of this title;
(6) to establish an application process, eligibility criteria, and criteria for prioritizing
assistance for awarding grants, loans, incentives, and other investments in agricultural
and forestry enterprises and in food and forest systems;
(7) to award grants and other investments, which may include loans underwritten and administered
through the Vermont Economic Development Authority;
(8) to enter into performance contracts with one or more persons in order to provide investment
and services to agricultural and forestry enterprises, including:
(A) technical assistance and product research services;
(B) marketing assistance, market development, and business and financial planning;
(C) organizational, regulatory, and development assistance; and
(D) feasibility studies of facilities or capital investments to optimize construction
and other cost efficiencies;
(9) to identify workforce needs and programs in order to develop training and incentive
opportunities for the agriculture and forest product sectors after consulting with
the Department of Labor;
(10) to identify strategic statewide infrastructure and investment priorities considering:
(A) leveraging opportunities;
(B) economic clusters;
(C) return-on-investment analysis; and
(D) other considerations the Board determines appropriate;
(11) to develop an annual operating budget, and:
(A) solicit and accept any grants, gifts, or appropriations necessary to implement the
budget pursuant to 32 V.S.A. § 5; and
(B) expend any monies necessary to carry out the purposes of this section; and
(12) to identify growing markets and opportunities for the livestock and poultry sectors,
including promoting independent animal welfare certification programs.
(c) Staff support. The Agency of Agriculture, Food and Markets shall provide administrative support to
the extent authorized by the Secretary of Agriculture, Food and Markets, and with
the assistance of the Department of Forests, Parks and Recreation to the extent authorized
by the Commissioner of Forests, Parks and Recreation, in order to support the Board
in the performance of its duties pursuant to this section. (Added 2011, No. 142 (Adj. Sess.), § 1, eff. May 15, 2012; amended 2015, No. 39, § 24; 2017, No. 75, § 7; 2019, No. 83, § 8; 2021, No. 105 (Adj. Sess.), § 145, eff. July 1, 2022; 2023, No. 6, § 65, eff. July 1, 2023.)