HB43

HB43 expands agricultural financial assistance and changes who runs the Texas Agricultural Finance Authority. It removes the former age limits from two “young farmer” programs, increases their maximum awards and creates assistance for agricultural pest, disease and damaging-animal control. It was signed and took effect June 20, 2025, after receiving the votes needed for immediate effect. Final law; official history.

The main financing changes are:

• Farmer Interest Rate Reduction Program: the maximum loan doubles from $500,000 to $1 million. The lender’s maximum interest-rate margin over the state’s linked-deposit rate falls from four percentage points to one. This is not a promise of a 1% total interest rate. The former age restriction—at least 18 but younger than 46—is removed. The board can tailor disbursement timing to recipients’ needs, and Farm Credit System institutions no longer have to be headquartered in Texas.
• Agriculture Grant Program: grants remain at least $5,000, but the maximum rises from $20,000 to $500,000. Applicants must be agricultural producers or businesses, without the former age restriction. Their required match drops from at least one dollar per grant dollar to at least 10% of the grant amount. For a $100,000 grant, that statutory minimum is $10,000, not 10% of the combined project cost.
• The board must adopt rules allowing recipients to use part of a loan or grant to apply for other assistance, including matching federal funds, and to combine it with other state or federal assistance. Those other programs’ requirements still matter.

Grants may support maintaining agricultural businesses or agricultural land uses, supply-chain resilience, and business creation or expansion. Existing application, creditworthiness and approval requirements are not abolished; eligibility and a higher ceiling do not guarantee an award. Final law, Sections 5–15; Agriculture Code Chapter 58.

The law also removes Section 58.021(c)’s general $2 million aggregate financing limit and its up-to-$5 million exception requiring a two-thirds board vote. It retains specified board-approved financing powers. That removal is separate from the $1 million ceiling on interest-reduction loans. The “agricultural business” definition adds nonprofits primarily devoted to maintaining agricultural land uses, while deleting the catchall for any rural business and specific recreational and permit-holder language. It is not simply an expansion to every rural enterprise. Final law, Sections 1 and 4.

A new program directs assistance from the Texas Agricultural Fund to the Animal Health Commission, Texas A&M AgriLife Extension Service or Texas A&M AgriLife Research for programs reducing agricultural losses from pests, diseases or animals that damage agriculture. These agencies must apply; this provision does not itself promise a direct pest-control payment to every farmer. The board must adopt operating rules. Final law, Section 16.

The authority’s board changes from 11 members to nine: the agriculture commissioner, two commissioner-appointed agricultural lending experts, and six governor appointees—two agricultural-entity representatives, two young-farmer/rancher representatives and two family-farm/ranch operators. Existing members may finish their terms. The annual report to the Legislative Budget Board must show revenues and spending for each program. Final law, Sections 2–3 and 17–18.