New York should provide unemployment debt relief to businesses who are shouldering the added costs of the COVID pandemic shutdown from spring 2020, the New York Farm Bureau on Tuesday said. 

The organization released its goals for the 2023 legislative session in Albany with the ongoing controversy surrounding unemployment debt for businesses in New York at the top of the list. 

Some of the proposals the agriculture industry is pursuing this year include making it easier for farmers to sell farm-produced beverages like beer and cider directly to consumers as well as expanded support for New York-grown products. 

But labor costs have been a dominant concern for farmers in New York as the industry continues to struggle with the price of doing business. The unemployment debt concerns have been raised by business groups as a key issue across the state. 

“This is inexcusable. New York must pay its own debts," said Farm Bureau President David Fisher. "There seems to be great interest in the legislature to make this happen, and we will continue to make this a priority."

New York accrued billions of dollars in unemployment debt owed to the federal government as the COVID pandemic and subsequent closure of public gathering spaces and businesses led to a spike in joblessness. 

As a result, businesses have received what amounted to a tax increase to help pay down interest and the debt taken on nearly three years ago. New York has one of the highest unemployment debt burdens among states in the country, accounting for billions of dollars owed back to the federal government. 

Small business organizations for the last several years have urged state lawmakers and the governor to provide some relief. As of the end of the year, about $7 billion was still owed.

Farms in New York have also raised concerns with additional labor costs, including an increase in the minimum wage in counties north of Westchester to $14.20 at the end of last year. Overtime costs for farm laborers are also expanding over the course of the decade, with the threshold for when overtime kicks in lowered to 40 hours a week. 

Gov. Kathy Hochul this year has proposed linking minimum wage increases to the rate of inflation, though the plan would include a cap if costs run too high. 

Inflation has made the cost of doing business more expensive, to begin with, the Farm Bureau said. 

“Let’s press pause on these annual income hikes and let things settle for the business community," Fisher said. "Now is not the time to make it worse."