North Carolina HB 617: 63rd House District Local Act-1.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 617

Short Title: Supporting Small Farmers for NC's Future Act. (Public)
Sponsors: Representatives Jeffers, Pittman, R. Pierce, and Ager (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Agriculture and Environment, if favorable, Appropriations, if favorable, Finance,
if favorable, Rules, Calendar, and Operations of the House
April 1, 2025
*H617-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO SUPPORT SMALL FARMERS IN NORTH CAROLINA BY PROVIDING 2
GRANT FUNDING TO ENSURE THE FUTURE VIABILITY OF NORTH CAROLINA'S 3
FAMILY FARMS AND BY LOWERING THE INCOME REQUIREMENT FOR 4
QUALIFYING FARMERS FOR PURPOSES OF THE SALES TAX EXEMPTION FOR 5
FARMERS. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. Findings and Purpose. – The General Assembly finds that decades of 8
barriers to entry, rising land prices, and economic consolidation has led to the loss of millions of 9
acres of land farmed by small farmers. The General Assembly further finds that financial 10
assistance through targeted grants can help address disparities and contribute to the long-term 11
success of small farmers. The purpose of this act is to support the viability and sustainability of 12
small farmers in North Carolina by providing financial assistance and tax relief to support these 13
farmers. 14
SECTION 2. Chapter 106 of the General Statutes is amended by adding a new 15
Article to read: 16
"Article 61B. 17
"Small Farmers Support Grant Program. 18
"§ 106-748. Definitions. 19
The following definitions apply in this Article: 20
(1) Commissioner. – The Commissioner of Agriculture and Consumer Services. 21
(2) Department. – The North Carolina Department of Agriculture and Consumer 22
Services. 23
(3) Eligible individual. – A resident of this State who meets all of the following 24
criteria: 25
a. Is at least 21 years of age. 26
b. Is a small farmer. 27
c. Had an annual income from farming operations for the preceding 28
taxable year of at least one thousand dollars ($1,000) or more. 29
(4) Eligible purpose. – Any of the following: 30
a. Purchases of mechanized equipment for harvest and crop 31
management. 32
b. Farm infrastructure, including livestock fencing. 33
c. Food processing equipment. 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 617-First Edition
(5) Small farmer. – A farmer with a gross cash farm income of three hundred 1
thousand dollars ($300,000) or less, as determined in a manner as the 2
Department may specify. 3
"§ 106-749. Small Farmers Support Grant Program established. 4
(a) Program Established. – The Small Farmers Support Grant Program (Program) is 5
established within the North Carolina Department of Agriculture to support current small farmers 6
and to encourage the continued financial viability of those farmers in the field of agriculture. The 7
Small Farmer Growth Fund (Fund) is established as a special revenue fund. The Fund shall 8
consist of gifts, grants, and donations from non-State entities and General Fund appropriations 9
for the support of the Program established by this Article. The Fund shall be used for the 10
provision of grants to eligible individuals for essential inputs, equipment, and operational 11
improvements to their farming operations. 12
(b) Grants. – Grants from the Fund are subject to the following procedures and 13
restrictions: 14
(1) An eligible individual seeking a grant shall submit an application on a form 15
and in a manner approved by the Commissioner that specifies one or more 16
eligible purposes for the requested grant funding. 17
(2) The Commissioner may establish priorities for grants among all eligible 18
individuals based on criteria that include farm size, income levels, and 19
economic hardship, including lack of access to capital and operational 20
support. 21
(3) The Commissioner may establish tiered maximum grant amounts based on 22
financial hardship, demonstrated need, and other criteria the Department feels 23
will maximize the ability of the Program to increase the long-term viability 24
and sustainability of small farmers. 25
(c) The Department shall establish an advisory committee to monitor the Program's 26
effectiveness and make recommendations for improvements. 27
(d) The Department shall adopt rules to carry out the provisions of this Article." 28
SECTION 3.(a) Funding. – The sum of twenty million dollars ($20,000,000) in 29
recurring funds for the 2025-2026 fiscal year is appropriated from the General Fund to the 30
Department of Agriculture and Consumer Services for the Small Farmer Growth Fund to be 31
allocated as follows: 32
(1) Twelve million dollars ($12,000,000) to the Small Farmers Support Grant 33
Program (Program) established in G.S. 106-749, as enacted by Section 2 of 34
this act, for any eligible purpose of the Program. 35
(2) Three million dollars ($3,000,000) to the Program to be used for grants fo