BILL ANALYSIS

C.S.H.B. 2851

By: Burns

Agriculture & Livestock

Committee Report (Substituted)

BACKGROUND AND PURPOSE

C.S.H.B. 2851 is a direct result of findings from an interim charge of the House Committee on Agriculture & Livestock relating to a study of the access of the state's agricultural industry to available capital through loans, grants, or other sources. Currently, the average age of a beginning farmer is 46.3 years, which is much younger than the average age of all farmers at 57.5 years. Only 26 percent of beginning farmers are under the age of 35, an age group which represents only eight percent of all U.S. farmers. When factoring these statistics with the country's rapid farm decline, we are in vital need of introducing more young farmers into the industry in order to feed future generations. 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 (TAFA) 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. C.S.H.B. 2851 seeks to address this issue by increasing the maximum amount of the grant to $35,000 and revising the composition of TAFA's board of directors.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2851 amends the Agriculture Code to revise the composition of the board of directors of the Texas Agricultural Finance Authority (TAFA) by doing the following:

· replacing the member who is the director of the Institute for International Agribusiness Studies at Prairie View A&M University with a member who is a representative of the College of Agriculture and Human Sciences at the university selected by the college's dean; and

· adding the following as members:

o a representative of the College of Agriculture and Natural Resources at Tarleton State University selected by the college's dean; and

o a person, appointed by the commissioner of agriculture, who is knowledgeable about agricultural practices and graduated with an agriculture degree from a state institution of higher education within the past eight years.

The addition of the appointed member expressly does not affect the entitlement of an appointed member serving on the board immediately before the bill's effective date to continue to serve for the remainder of the member's term. As the terms of appointed board members expire, the commissioner is required to appoint or reappoint a member who has the required qualifications under the applicable statutory provisions, as amended by the bill.

C.S.H.B. 2851 increases from $20,000 to $35,000 the maximum amount of a grant that may be issued under TAFA's young farmer grant program. The increase applies only to a grant issued on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2851 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes provisions revising the composition of TAFA's board of directors, which were not included in the introduced.