by TM Petaccia

A bill currently in the North Carolina House of Representatives seeks to provide financial support to the state’s small farmers.

HB 617, Supporting Small Farmers for NC’s Future Act, is currently in the House Agriculture and Environment Committee, the first in a series of steps before it can potentially become law. If enacted, the bill lowers the income ceiling to qualify for a farm-related sales tax exemption, plus will establish the Small Farmers Support Grant Program, initially offering $19 million in state grants and $1 million in short-term loans.

“The General Assembly finds that decades of barriers to entry, rising land prices, and economic consolidation has led to the loss of millions of acres of land farmed by small farmers,” the bill’s preamble reads. “The General Assembly further finds that financial assistance through targeted grants can help address disparities and contribute to the long-term success of small farmers.”

The proposed legislation, authored by Rep. B. Ray Jeffers, District 2 (Durham), has a total of 27 sponsors throughout the state, including local representatives Julia Greenfield (District 100 — Easthaven, Arboretum, portions of Matthews), who sits on the Agriculture and Environment Committee, and Mary Belk (District 88 — South End, Dilworth, Yorkwood, South Charlotte).

“I believe in supporting our farmers. My parents both grew up on farms,” Greenfield says. “Farmers deserve to have all the help we can give them to keep them viable. I like the idea of the grant program to give them a leg up and help them have a successful farm.”

$12 million in grants are specified to be used for general farm improvements, such as general infrastructure (e.g., livestock fencing, grading) as well as buying farm equipment and food processing tools. Another $3 million is designated for the purchase of cold storage equipment.

One of the details to be decided is whether the grants will require some level of shared investment from the farmer. Many government grants require the applicant to contribute to the proposed grant project, sometimes as high as 25 percent. “We recognize many farmers don’t have the money to put up front to do the things they need to get started,” Greenfield says. “I’m hoping these programs will give farmers all these things up front where they don’t have to come up with that money out of the gate.”

The bill defines a small farmer as earning between $1,000 and $300,000 in annual farm income. To qualify for the grants, the farmer must also reside in North Carolina and be over 21 years of age.

The remaining $4 million is a grant to the Carolina Farm Steward Association (CFSA) for its FARMshare program, which purchases produce from small-scale farms to be distributed to residents in neighborhoods with limited access to fresh, healthy foods via grocery hubs and other community initiatives.

The FARMshare provision comes at a time when many of the federal food assistance programs are being terminated, such as the USDA Local Food Purchase Assistance program, which funded state governments to purchase locally produced foods and distribute them to underserved communities. The program was terminated in March. “Letting the LFPA sunset, that was a big blow,” says Kim Shaw of Small City Farm in Charlotte. “For farms like us, that was really great, so if there is funding for FARMshare, that will be a big help.”

“We’re all working in uncertain times right now,” Greenfield says. “We’re all trying to do as much as we can to be proactive.”

The bill also allocates $1 million in short-term bridge loans to help small farmers participate in the USDA’s Environmental Quality Incentives Program (EQIP), which aims to conserve natural resources on farms while maintaining or enhancing agricultural productivity by improving soil, water, plant, animal, air, and other environmental conditions.

In addition, HB 617 will lower the annual farm income requirement from $10,000 to $7,500 to receive a sales tax exemption on all farm-related purchases, making it easier for more small farmers to save money on supplies.

“Lowering the ceiling is really nice for newer farmers,” Shaw says. “It covers everything a farm uses, not just big equipment — chicken feed, wire, bags, rubber bands. It all adds up.”

One of the biggest hurdles to HB 617 being passed is that North Carolina still does not have an approved budget, which should have gone into effect June 1. “If we don’t gave a budget, nothing is getting funded,” Greenfield says. “So far, the Senate and the House are far apart on what they want, but hopefully we can move forward soon.”

Although the bill comes from the Democratic side of the House, Greenfield is encouraged by the initial Republican response. “I think it’s a very good sign that they wanted to hear it in the Ag Committee and that they will hear it again next week,” she says. “So it may get some traction.”

The bill is scheduled to be discussed in detail at the weekly meeting of the Agriculture and Environment Committee on June 11. This story will be updated as the bill progresses.