Amy Cawley, Farm to Food Bank Coordinator, Maryland Food Bank
Great news for Maryland farms, as HB 403 passed through the Maryland legislature in April. Starting July 1, farmers can receive tax credits for produce donations. Conventional produce donations will be valued at 50% of the market value, while certified organic donations are eligible for credits worth 75% of the market value. There is a $5,000 cap per farm and $100,000 statewide cap on this program.
- As Farm to Food Bank coordinator for the Maryland Food Bank, I encourage farmers to take advantage of this program for several reasons:
- There are 650,000+ food insecure residents across Maryland. Those struggling to make ends meet likely can’t afford to put food on their plate, especially nutrient dense food like fresh fruits and vegetables. As a result, they often make difficult tradeoffs between the quality and quantity of the food they purchase.
- Fresh produce provides vital nutrients that are necessary to sustain a healthy and active life. Individuals who regularly consume fresh produce are less likely to be hospitalized due to improved immune systems, are at decreased risk of chronic diseases, and are less likely to miss work and school due to improved general health.
- We hope this program will further encourage farmers to donate excess produce to MFB and allow us to coordinate volunteer gleanings of their fields so that we can distribute more fresh produce and educate Marylanders on the importance of good nutrition.
- The program needs to be used in order to keep it viable. If the legislators do not see farmers utilizing the money set aside, the fear is that it will go away and never return.
- Lastly, having worked with farmers for nine years and being a farmers’ daughter, I am hoping that this credit benefits our Farm to Food Bank partners.
These donations must be made to Maryland Department of Agriculture (MDA) tax credit certification administrators (TCCA). As the largest charitable food provider in Maryland, the Maryland Food Bank (MFB) is one those organizations. At the time of the donation, the MFB will provide a MFB donation form to the farmer. The farmer will then use that record to complete a separate form that can be found on the MDA website. The MDA will then determine the value of the donation based on USDA market values at the time of the donation. That form will then be sent back to the farmer for use when filing taxes.
If you have any questions about this program you can contact Amy Cawley, Farm to Food Bank Coordinator for the Maryland Food Bank, at acawley@mdfoodbank.org. You may also reach out to Stone Slade of the Maryland Department of Agriculture at stone.slade@maryland.gov.
