“Rural Texas, along with agriculture, is the bedrock of our Texas identity, who we think of when people around the world think Texas, but there is no rural Texas without agriculture,” Kitzman said.

Texas has the greatest number of farms and ranches in the U.S., 230,662 spanning 125.5 million acres, as of 2022, the latest available data from the Texas Agriculture Department. More than $32.2 billion in agricultural products were sold in Texas that year. Of Texas’ 402,876 producers, only 38% said farming was their primary occupation.

“Agriculture is the backbone of Texas. We are #1 in cotton, cattle, feed, and more. We must protect our farmers and this critical industry. With this new law I signed, Texas will continue to be #1 for generations to come,” Abbott said.

The new law expands grant and financial assistance provisions within the Texas Agricultural Finance Authority (TAFA). The TAFA was established by the legislature in 1987 within the Texas Department of Agriculture to provide financial assistance to develop state agriculture and agricultural products. Two of its most influential programs, a young farmer grant program and young farmer interest rate reduction program, have too many restrictions that limit its effectiveness, lawmakers said, which were amended in Kitzman’s bill.

House Speaker Dustin Burrows, R-Lubbock, said the changes will deliver “a lifeline to Texas farmers and ranchers and defending our nation’s food supply. This new law is vital in keeping Texas agriculture #1 in the nation.”

While Texas leads in many areas of agriculture, it’s not without hardship. Texas leads the U.S. in agricultural losses related to weather.

In 2024, losses totaled more than $3.4 billion, according to the Texas Farm Bureau. Drought and excessive heat contributed to more than 66% percent of Texas’ losses, the farm bureau said.

Specific crop losses during the 2024 hurricane season totaled $227 million in cotton, $108 million in corn, and $91 million in rice, according to Texas Agriculture Department data.

Weather losses compounded by supply chain issues and high inflation costs created additional strains for Texas farmers and put Texas’ agricultural industry at risk, Kitzman argues.

To provide relief, the law removes age restrictions from the two TAFA programs, allowing all farmers and ranchers to apply for grants and low-interest loans regardless of their age. Eligibility is also expanded 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,” the Farm Bureau states.

It also significantly increases available funding by raising loan caps to $1 million, significantly buys down interest rates and significantly expands grant awards from $20,000 to $500,000. It also doubles funding to $100 million for the Texas Animal Health Commission and Texas A&M AgriLife Extension to address disease outbreaks, pests and wildlife depredation.

“Expanding access to low-interest loans and grant programs will help more farmers and ranchers weather economic challenges and grow their operations,” Texas Farm Bureau President Russell Boening said. “It also strengthens rural communities by supporting ag-related businesses that are essential to agriculture in our state.”

TEXAS HOUSE ADVANCES NEWLY DRAWN CONGRESSIONAL MAP THAT FAVORS GOP

He also said the law was a direct result of lawmakers listening to constituents and Texas Farm Bureau members statewide. “When lawmakers hear directly from farmers and ranchers, it makes a difference. Supporting agriculture means strengthening the backbone of our rural communities and ensuring a stable, secure food supply for all Texans,” he said.

The bill passed nearly unanimously.