BILL ANALYSIS

Senate Research Center	H.B. 2851
88R19826 KBB-D	By: Burns (Kolkhorst)
	Water, Agriculture & Rural Affairs
	5/17/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Historically, one of the largest barriers to entry for young farmers and ranchers is the capital-intensive nature of beginning in the industry. This is especially true today, due to the significant rise in input prices for farmers and ranchers. Currently, a grant under the Texas Agricultural Finance Authority's (authority) young farmer grant program may not be less than $5,000 or more than $20,000, which is not enough to properly incentivize first-generation farmers and ranchers to join the industry or apply for the grant.

H.B. 2851 is a direct result of findings from an interim charge of the House Committee on
Agriculture and Livestock relating to a study of the access of the state's agricultural industry to available capital through loans, grants, or other sources.���������

H.B. 2851 seeks to address this issue by increasing the maximum amount of the grant to
$35,000 and revising the composition of the authority's board of directors.

H.B. 2851 amends current law relating to the composition of the board of directors of the Texas Agricultural Finance Authority and grant amounts under the young farmer grant program administered by the authority.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 58.012(a), Agriculture Code, as follows:

(a) Provides that the Texas Agricultural Finance Authority (authority) is governed by a board of directors (board) composed of the commissioner of agriculture (commissioner), a representative of the College of Agriculture and Human Sciences, rather than the director of the Institute for International Agribusiness Studies, at Prairie View A&M University selected by the dean of the college, a representative of the College of Agriculture and Natural Resources at Tarleton State University selected by the dean of the college, and 10, rather than nine, members appointed by the commissioner. Requires members of the board to be appointed in the numbers specified and from certain categories, including one person who is knowledgeable about agricultural practices and graduated with an agriculture degree from a state institution of higher education within the past eight years.

SECTION 2. Amends Section 58.093, Agriculture Code, as follows:

Sec. 58.093. AMOUNT OF GRANTS. Prohibits a grant under the young farmer grant program from being less than $5,000 or more than $35,000, rather than more than $20,000.

SECTION 3. Makes application of Section 58.093, Agriculture Code, as amended by this Act, prospective.

SECTION 4. Provides that the changes in law made by this Act in the qualifications of appointed members of the board do not affect the entitlement of an appointed member serving on the board immediately before the effective date of this Act to continue to serve for the remainder of the member's term. Requires the commissioner, as the terms of board members expire, to appoint or reappoint a member who has the qualifications required for a member under Section 58.012(a), Agriculture Code, as amended by this Act.

SECTION 5. Effective date: September 1, 2023.