The bill S.323, introduced by the Committee on Agriculture, seeks to enhance agricultural practices in Vermont by prohibiting municipal regulations on agricultural activities that adhere to the Required Agricultural Practices Rule. It clarifies that municipalities cannot regulate farming or the construction of farm structures, effectively overturning a previous Vermont Supreme Court decision. The bill also introduces tax exemptions for certain farmers, including income, capital gains, and property transfer tax exemptions for agricultural property sales. Additionally, it designates farm kitchen operations as a new category of food processing establishments and allows the Agency of Agriculture, Food and Markets to provide contracts for the Farm-to-School program. Notably, the bill increases the income threshold for compliance with the Required Agricultural Practices Rule from $2,000 to $5,000 and allows for the inclusion of donated farm crops in income calculations.

Furthermore, the bill establishes the Vermont Agricultural Credit Program to provide alternative credit sources to farmers and forest products businesses, facilitating direct loans and participation in loans from other agricultural credit providers. It sets a cap on the total loan amount for any borrower at $5,000,000 and outlines eligibility standards for applicants. The bill also eliminates annual operating fees for large and medium farm operations starting July 1, 2026, and mandates a study by the Agency of Natural Resources and the Agency of Agriculture, Food and Markets to evaluate the permitting process for floor drains used for wastewater disposal, with findings to be reported to legislative committees by January 15, 2027. Overall, the bill aims to strengthen local food systems, support agricultural practices, and streamline regulatory processes related to food production and safety.

Statutes affected:
As Introduced: 24-4413(d), 24-4413, 32-5811(21), 32-5811, 32-9603, 10-6081(t), 10-6081, 32-3752(1), 32-3752, 18-4301, 18-4353, 30-248, 6-2752, 6-4721, 6-83, 6-1112, 6-641, 6-642, 6-644, 6-646(b), 6-646, 6-647, 6-648, 10-16A, 6-4851(i), 6-4851, 6-4858(e), 6-4858