Ag & Water Funding in the State Budget
Flood Protection, FPIP & FARMER Among Programs Funded
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After months of negotiations with legislators, Governor Gavin Newsom signed multiple budget measures on July 10 to fund the 2023-2024 state budget, including funding for several key agriculture and water programs.
To address the approximately $32 billion deficit, the governor and legislators cut, delayed and shifted some spending. California’s tax structure is heavily reliant upon personal income taxes, corporate taxes and sales and use taxes, and the deficit results from lower state revenues caused in part by inflation and stock market struggles.
Agriculture and Water Funding
Notably, for agriculture, the final budget contains funding for the Food Production Investment Program (FPIP), FARMER program, Healthy Soils, as well as urban greening programs benefitting the nursery community. Language in the budget also creates a voluntary enteric emissions incentive program at the California Department of Food and Agriculture (CDFA) for livestock.
For water, a major emphasis is on flood-related dollars. Over $436 million for flood recovery and future flood preparedness is in the budget, particularly for vulnerable, at-risk communities. The budget also codifies an executive order allowing diversions of floodflows for groundwater recharge without an appropriative right when certain conditions are met.
For specific funding allocations and further details about the various ag and water programs funded in the final 2023-2024 state budget, click here to learn more.
Food Production Investment Program
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Ag Council is pleased the Food Production Investment Program (FPIP) is funded at $40 million in the 2023-2024 state budget. Ag Council strongly supported this funding allocation in our advocacy work with both the governor’s office and legislators.
The funding is good news given it is a tighter budget year and funding was not guaranteed.
FPIP is a matching grant program at the California Energy Commission (CEC) assisting food processors in reducing energy use and lowering carbon emissions by replacing high energy equipment with advanced technologies and equipment. It also accelerates the adoption of state-of-the-art energy technologies to considerably reduce energy use and associated greenhouse gas emissions (GHG).
Several Ag Council members have successfully competed for and received FPIP grant funds. They utilized the funding to upgrade equipment, which can involve substantial capital investments, to help meet California’s ambitious energy and carbon goals.
Ag Council thanks the governor’s team and his administration, in particular, for pursuing and supporting continued funding for FPIP.
Ag Council will apprise members when the CEC opens the application process for FPIP grant funds.