State Agricultural Finance Programs Received a Boost in Funding, Thanks to New Legislation

State agricultural finance programs received a boost in funding, thanks to new legislation passed during the regular session of the Texas Legislature.

HB 43 by Rep. Stan Kitzman and Sen. Kevin Sparks expands the programs under the Texas Agricultural Finance Authority to better support farmers, ranchers and rural communities.

The bill removes age restrictions from agricultural assistance programs, allowing all farmers—not just those ages 18 to 46—to apply for grants and low-interest loans.

“HB 43 helps more farmers and ranchers access funding to grow their operation,” Lemae Higgs, Fayette County Farm Bureau president, said.

The bill also increases available funding by raising loan caps to $1 million, along with significantly buying down interest rates, and it expands grant awards from $20,000 with a 100% matching requirement to $500,000 with a 10% match.

“This bill recognizes the reality of farming today with higher costs, tighter margins and greater financial risk,” Higgs said. “These changes will help ease that financial burden.”

Eligibility was broadened to include businesses essential to agriculture, like feed stores and cotton gins, in an effort to support the rural agricultural economy amid rising costs and economic pressures.

“Investing in agriculture means investing in those businesses that support farmers and ranchers,” Higgs said. “This bill helps support the entire supply chain that keeps agriculture moving.”

In addition to finance program updates, HB 43 includes funding for the Texas Animal Health Commission and Texas A&M AgriLife Extension to address disease outbreaks, pests and wildlife depredation.

The total amount appropriated for HB 43 is now $100 million, a significant increase from $500,000 previously. The bill goes in effect Sept. 1.