Gov. Josh Shapiro’s 2025-26 budget would more than double the state’s Ag Innovation Fund and open a fourth bird flu testing facility in Western Pennsylvania.
For a second year, Shapiro highlighted agriculture as “key to our future” on Tuesday, Feb. 4. His new budget proposes to shrink the Department of Agriculture’s budget by 2% for a total of $255 million, but would add $13 million to the state’s innovation fund, which finances technology, conservation and renewable energy advancements.
“There are 50,000 farms across Pennsylvania that contribute $132 billion to our economy and support almost 600,000 Pennsylvania jobs. To ignore that isn't just disrespectful. It doesn't make sense economically,” Shapiro said.
Shapiro boasted that agriculture is at the center of the Pennsylvania Economic Development Strategy, which his administration reports is the state’s first development plan in 20 years. That plan, released in Jan. 2024, promises to prioritize Pennsylvania agriculture over the next 10 years.
Positive response to proposals
The response to Shapiro’s push for agriculture has been overwhelmingly positive.
Pennsylvania Farm Bureau President Chris Hoffman spoke about the governor’s innovation fund in an interview shortly after the address. The Shapiro Administration announced the first set of recipients the day before.
In its first year, 88 farmers received a total of $10 million for projects across the state. Hoffman said around 30 types of agricultural industries from 45 counties received funding.
“The need is great,” said Hoffman. The agriculture department received $68 million in requests — nearly 7 times its funding in its first year. Technological advances are expensive, Hoffman added from experience. He had just finished remodeling the nursery at his farm. Everything, from the improvements in animal healthcare to energy efficiency, brought costs to “the tune of $125,000.”
“It's expensive when you start thinking about upgrading technology or trying something … to innovate … But you know, to go out and spend that kind of money in today's economy is pretty tough, and so the investment into agriculture is so important,” Hoffman said.
Innovation can make the difference between a thriving farm and a struggling one. Technology can help farmers adapt to rising labor and energy costs, Hoffman said. Machines like robotic milkers and robots that can carry crops from the field allows farmers to reinvest savings into their farm and community.
“We need that money … to make sure that we’re ready. Having the right technology for the next generation is going to be so important. We're competing in a global world, and so it really is important that we do everything we can,” Hoffman said.
It can have positive environmental impacts, Hoffman added. Carbon-capturing technology and advancements in soil health not only make farming more efficient, but put less strain on local ecosystems.
Shapiro also proposes to invest an additional $4 million into the Pennsylvania Agricultural Surplus System and $2 million into the State Food Purchase Program. The first reimburses farmers for donating excess food to nonprofits that feed those in need, while the second provides counties grants to purchase food for low income residents.
Besides helping local communities, Hoffman said those programs grow farmers’ businesses.
“It’s a win-win for the Commonwealth, because you know, it's creating a community of food security, as well as putting the money back into the community where the farmers are,” Hoffman said.
Addressing bird flu concerns
While Shapiro celebrated the agricultural industry’s growth through the innovation fund and during last month’s Farm Show, he also addressed rising concerns over bird flu.
Bird flu, or Highly Pathogenic Avian Influenza (HPAI) is a highly contagious virus that can kill an entire flock within a few days, but its symptoms include neurological changes and multiple organ failure. The virus is vicious.
Shapiro announced the department found a second case of the virus in a commercial farm in Middletown, Dauphin County over the weekend.
He said the state’s $60 million Highly Pathogenic Avian Influenza Recovery Reimbursement Grant will continue to help farmers who have lost their flock. If one bird falls ill, the whole flock must be euthanized.
As he said at last month’s Farm Show in Harrisburg, Shapiro said on Tuesday that his administration has “taken aggressive and proactive steps to communicate with our farmers – from our major commercial sites to our Amish community – and to encourage them to put biosecurity measures in place.”
Shapiro also proposed adding $2 million to cover expenses for a bird flu testing lab in Western Pennsylvania.
That lab currently receives between $5 million and $6 million in state funding, according to Hoffman, who’s also on the state’s Animal Health and Diagnostic Commission.
He added the administration might announce the lab’s location and owner sometime “in the next week.”
“We're seeing avian flu pretty much all over the place now, and we need to be able to have these testing facilities up and running and really be able to have a system where we can identify problems and be able to address the needs as quickly as possible,” said Hoffman.
The state General Assembly must pass, and Shapiro must sign a 2025-2026 budget to go into effect July 1.
