North Carolina 2025-2026 Regular Session

North Carolina House Bill H296 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 296
	3	+	H D
	4	+	HOUSE BILL DRH40190-NBa-110
	5	+
5	6
6	7
7	8		Short Title: Corn Farmer Recovery Act - Phase I. (Public)
8		-	Sponsors: Representatives B. Jones, Penny, Brisson, and Cairns (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
11		-	March 6, 2025
12		-	H296 -v-1
	9	+	Sponsors: Representative B. Jones.
	10	+	Referred to:
	11	+
	12	+	DRH40190 -NBa-110
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO ESTABLISH A CORN FARMERS RECOVERY ACT AND TO APPROPRIATE 2
15	15		FUNDS FOR THAT PURPOSE . 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		5
18	18		PART I. LEGISLATIVE FINDINGS 6
19	19		SECTION 1.1. The North Carolina General Assembly makes the following findings 7
20	20		for corn farming in 2024: 8
21	21		(1) Corn farming is a cornerstone of North Carolina's agricultural economy, with 9
22	22		approximately 900,000 acres dedicated to its cultivation and generating over 10
23	23		seven hundred fifty-six million nine hundred thousand dollars ($756,900,000) 11
24	24		in cash receipts. Thousands of farmers rely on corn production to support 12
25	25		livestock feed, ethanol, and food processing industries. 13
26	26		(2) In 2024, North Carolina's corn farmers faced unprecedented challenges due to 14
27	27		extreme weather events, including severe drought, excessive rainfall, and 15
28	28		multiple hurricanes. These disasters resulted in widespread crop losses, 16
29	29		infrastructure damage, and significant financial strain on farm operations. 17
30	30		(3) The United States Department of Agriculture issued multiple secretarial 18
31	31		disaster declarations covering affected counties, recognizing the devastating 19
32	32		impact on corn production. While federal assistance has provided some relief, 20
33	33		additional State support is necessary to aid recovery and ensure future 21
34	34		resilience. 22
35	35		(4) North Carolina's corn farmers have demonstrated resilience by adopting 23
36	36		conservation practices and improved farming techniques. However, targeted 24
37	37		investment in disaster relief, infrastructure, and research is essential to 25
38	38		stabilize the industry and protect the State's agricultural economy. 26
39	39		27
40	40		PART II. TRANSFERS AND APPROPRIATIONS 28
41	41		SECTION 2.1.(a) Transfer. – The State Controller shall transfer the sum of 29
42	42		eighty-nine million five hundred eight thousand seven hundred ninety-two dollars ($89,508,792) 30
43	43		from the State Emergency Response and Disaster Relief Fund to the Department of Agriculture 31
44	44		and Consumer Services (Department). 32
45	45		SECTION 2.1.(b) Appropriation. – The funds transferred in subsection (a) of this 33
46	46		section are appropriated to the Department for the 2024 Agricultural Disaster Corn Crop Loss 34
47		-	Program, as established in Part III of this act. These funds and remaining funds from Section 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 296-First Edition
49		-	5.9A(c)(2) of S.L. 2021-180 and Section 5.4(a)(4)a. of S.L. 2022-74 shall be used to assist 1
50		-	farmers in counties designated by the United States Department of Agriculture as agricultural 2
51		-	disasters that occurred during 2024 in this State. 3
52		-	4
53		-	PART III. 2024 AGRICULTURAL DISASTER COR N CROP LOSS PROGRAM 5
54		-	SECTION 3.1.(a) Agricultural Disaster Corn Crop Loss Program. – The 2024 6
55		-	Agricultural Disaster Corn Crop Loss Program is established within the Department of 7
56		-	Agriculture and Consumer Services. The Program shall be used to provide financial assistance 8
57		-	to farmers with verified losses of corn from an agricultural disaster in this State in 2024. The 9
58		-	Department may use up to one percent (1%) of funds allocated for the Program for administrative 10
59		-	purposes. To be eligible for financial assistance for losses of corn, a person must satisfy all of the 11
60		-	following criteria: 12
61		-	(1) The person experienced a verifiable loss of corn, as a result of an agricultural 13
62		-	disaster in 2024, and the person's farm is located in an affected area for the 14
63		-	respective agricultural disaster. 15
64		-	(2) The corn was planted but not harvested on or before the eligibility date. For 16
65		-	purposes of this subsection, the term "eligibility date" refers to the date of the 17
66		-	disaster set forth in the Secretarial declaration for the county in which the corn 18
67		-	is located and for which verifiable losses are claimed. 19
68		-	SECTION 3.1.(b) Verification of Loss. – A person seeking financial assistance for 20
69		-	losses of corn under the Program shall submit to the Department a Form 578 on file with the 21
70		-	USDA Farm Service Agency or a form provided by the Department for reporting acreage or 22
71		-	plantings of corn crops or loss that is not typically reported on Form 578, along with any other 23
72		-	documentation deemed appropriate by the Department, no later than 45 days after this section 24
73		-	becomes effective. For corn crops where the survival level is not immediately known, the 25
74		-	Department may extend this deadline by an additional 45 days, upon written request by the person 26
75		-	received no later than 45 days after this section becomes effective and upon approval by the 27
76		-	Department. A person receiving assistance under this Program must provide a signed affidavit, 28
77		-	under penalty of perjury, certifying that each fact of the loss presented by the person is accurate. 29
78		-	SECTION 3.1.(c) Criteria. – The Department shall administer the financial 30
79		-	assistance program authorized by this section in accordance with the following criteria: 31
80		-	(1) In determining the payment calculation for corn, the Department shall use a 32
81		-	formula based on acreage, county loss estimates, USDA National Agricultural 33
82		-	Statistics Service averages, and any other measure the Department deems 34
83		-	appropriate. Funds shall be distributed based on county averages for yields 35
84		-	and State averages for price. Calculations shall be based on county or State 36
85		-	averages in price, whichever the Department determines is appropriate. 37
86		-	(2) The Department shall gather all claim information, except from those 38
87		-	applicants granted a deadline extension, no later than 45 days after this section 39
88		-	becomes law. The Department shall, as closely as possible, estimate the 40
89		-	amount of the funds needed to be held in reserve for payments related to losses 41
90		-	of corn crops for which losses will not be fully known or calculated. The 42
91		-	Department shall set aside funds as it deems appropriate based on the 43
92		-	estimated percentage of these losses. 44
93		-	(3) Payments made under this Program shall be made to the person who filed the 45
94		-	Form 578 or Department form for claims related to corn losses. 46
95		-	SECTION 3.1.(d) Audit. – The Department may audit the financial and other records 47
96		-	of each recipient of funds in order to ensure that the funds are used in accordance with the 48
97		-	requirements of this Program. The Department may require any documentation or proof it 49
98		-	considers necessary to efficiently administer this Program, including the ownership structure of 50
99		-	each entity and the social security numbers of each owner. In order to verify losses, the 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 296-First Edition Page 3
101		-	Department may require the submission of dated, signed, and continuous records. These records 1
102		-	may include, but are not limited to, commercial receipts, settlement sheets, warehouse ledger 2
103		-	sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, 3
104		-	contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash 4
105		-	register tape, invoices for custom harvesting, u-pick records, and insurance documents. 5
106		-	SECTION 3.1.(e) Expenditure of Awarded Funds. – Awarded funds shall be used 6
107		-	for agricultural production expenses and recovery of losses due to the impacts of an agricultural 7
108		-	disaster in 2024. The Department shall develop guidelines and procedures to ensure that funds 8
109		-	are expended for the purposes allowed by this section and may require any documentation it 9
110		-	determines necessary to verify the appropriate use of financial assistance awards, including 10
111		-	receipts. All distributed funds are subject to federal and State income tax. 11
112		-	SECTION 3.1.(f) Refund of Award. – If a person receives financial assistance under 12
113		-	this Program for which the person is ineligible, or if the amount of the financial assistance 13
114		-	received is based on inaccurate information, the person forfeits the assistance awarded under this 14
115		-	section and is liable for the amounts received. Assistance forfeited under this section shall bear 15
116		-	interest at the rate determined in accordance with G.S. 105-241.21 as of the date of receipt until 16
117		-	repaid. Financial assistance forfeited but not paid shall be collected by a civil action in the name 17
118		-	of the State, and the recipient shall pay the cost of the action. The Attorney General, at the request 18
119		-	of the Commissioner of Agriculture, shall institute the action in the proper court for the collection 19
120		-	of the award forfeited, including interest thereon. 20
121		-	SECTION 3.1.(g) Definitions. – For purposes of this section, the following 21
122		-	definitions apply: 22
123		-	(1) Agricultural disaster. – A secretarial disaster designation declared by the 23
124		-	United States Department of Agriculture Secretary for qualifying counties in 24
125		-	this State. 25
126		-	(2) Corn. – A cereal plant of the grass family (Zea mays) and an edible grain. 26
127		-	(3) Department. – The Department of Agriculture and Consumer Services. 27
128		-	(4) Person. – Any individual, trust, estate, partnership, receiver, association, 28
129		-	company, limited liability company, corporation, or other entity or group. 29
130		-	(5) Program. – The 2024 Agricultural Disaster Corn Crop Loss Program. 30
131		-	SECTION 3.1.(h) Program Reporting Requirement. – The Department shall submit 31
132		-	a report to the Fiscal Research Division no later than the first day of the month six months after 32
133		-	this section becomes effective, and every six months thereafter until all funds are expended or 33
134		-	the Program expires, containing, at a minimum, all of the following data: 34
135		-	(1) The number of applicants and the county in which the person incurred the 35
136		-	verified loss. 36
137		-	(2) The number and amount of grants awarded. 37
138		-	(3) The geographic distribution of the grants awarded. 38
139		-	(4) The total amount of funding available to the Program, the total amount 39
140		-	encumbered, and the total amount disbursed to date. 40
141		-	(5) Any refunds made to the Program pursuant to subsection (f) of this section. 41
142		-	SECTION 3.1.(i) Expiration and Reversion. – The Program shall expire 30 months 42
143		-	after this section becomes effective. Any funds allocated to the Program not expended or 43
144		-	encumbered by that date shall revert to the State Emergency Response and Disaster Relief Fund. 44
145		-	45
146		-	PART IV. EFFECTIVE DATE 46
147		-	SECTION 4.1. This act is effective when it becomes law. 47
	47	+	Program, as established in Part III of this act. These funds and remaining funds from Section 35
	48	+	5.9A(c)(2) of S.L. 2021-180 and Section 5.4(a)(4)a. of S.L. 2022-74 shall be used to assist 36
	49	+	H.B. 296
	50	+	Mar 5, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH40190-NBa-110
	53	+	farmers in counties designated by the United States Department of Agriculture as agricultural 1
	54	+	disasters that occurred during 2024 in this State. 2
	55	+	3
	56	+	PART III. 2024 AGRICULTURAL DISASTER CORN CROP LOSS PROGRAM 4
	57	+	SECTION 3.1.(a) Agricultural Disaster Corn Crop Loss Program. – The 2024 5
	58	+	Agricultural Disaster Corn Crop Loss Program is established within the Department of 6
	59	+	Agriculture and Consumer Services. The Program shall be used to provide financial assistance 7
	60	+	to farmers with verified losses of corn from an agricultural disaster in this State in 2024. The 8
	61	+	Department may use up to one percent (1%) of funds allocated for the Program for administrative 9
	62	+	purposes. To be eligible for financial assistance for losses of corn, a person must satisfy all of the 10
	63	+	following criteria: 11
	64	+	(1) The person experienced a verifiable loss of corn, as a result of an agricultural 12
	65	+	disaster in 2024, and the person's farm is located in an affected area for the 13
	66	+	respective agricultural disaster. 14
	67	+	(2) The corn was planted but not harvested on or before the eligibility date. For 15
	68	+	purposes of this subsection, the term "eligibility date" refers to the date of the 16
	69	+	disaster set forth in the Secretarial declaration for the county in which the corn 17
	70	+	is located and for which verifiable losses are claimed. 18
	71	+	SECTION 3.1.(b) Verification of Loss. – A person seeking financial assistance for 19
	72	+	losses of corn under the Program shall submit to the Department a Form 578 on file with the 20
	73	+	USDA Farm Service Agency or a form provided by the Department for reporting acreage or 21
	74	+	plantings of corn crops or loss that is not typically reported on Form 578, along with any other 22
	75	+	documentation deemed appropriate by the Department, no later than 45 days after this section 23
	76	+	becomes effective. For corn crops where the survival level is not immediately known, the 24
	77	+	Department may extend this deadline by an additional 45 days, upon written request by the person 25
	78	+	received no later than 45 days after this section becomes effective and upon approval by the 26
	79	+	Department. A person receiving assistance under this Program must provide a signed affidavit, 27
	80	+	under penalty of perjury, certifying that each fact of the loss presented by the person is accurate. 28
	81	+	SECTION 3.1.(c) Criteria. – The Department shall administer the financial 29
	82	+	assistance program authorized by this section in accordance with the following criteria: 30
	83	+	(1) In determining the payment calculation for corn, the Department shall use a 31
	84	+	formula based on acreage, county loss estimates, USDA National Agricultural 32
	85	+	Statistics Service averages, and any other measure the Department deems 33
	86	+	appropriate. Funds shall be distributed based on county averages for yields 34
	87	+	and State averages for price. Calculations shall be based on county or State 35
	88	+	averages in price, whichever the Department determines is appropriate. 36
	89	+	(2) The Department shall gather all claim information, except from those 37
	90	+	applicants granted a deadline extension, no later than 45 days after this section 38
	91	+	becomes law. The Department shall, as closely as possible, estimate the 39
	92	+	amount of the funds needed to be held in reserve for payments related to losses 40
	93	+	of corn crops for which losses will not be fully known or calculated. The 41
	94	+	Department shall set aside funds as it deems appropriate based on the 42
	95	+	estimated percentage of these losses. 43
	96	+	(3) Payments made under this Program shall be made to the person who filed the 44
	97	+	Form 578 or Department form for claims related to corn losses. 45
	98	+	SECTION 3.1.(d) Audit. – The Department may audit the financial and other records 46
	99	+	of each recipient of funds in order to ensure that the funds are used in accordance with the 47
	100	+	requirements of this Program. The Department may require any documentation or proof it 48
	101	+	considers necessary to efficiently administer this Program, including the ownership structure of 49
	102	+	each entity and the social security numbers of each owner. In order to verify losses, the 50
	103	+	Department may require the submission of dated, signed, and continuous records. These records 51 General Assembly Of North Carolina Session 2025
	104	+	DRH40190-NBa-110 Page 3
	105	+	may include, but are not limited to, commercial receipts, settlement sheets, warehouse ledger 1
	106	+	sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, 2
	107	+	contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash 3
	108	+	register tape, invoices for custom harvesting, u-pick records, and insurance documents. 4
	109	+	SECTION 3.1.(e) Expenditure of Awarded Funds. – Awarded funds shall be used 5
	110	+	for agricultural production expenses and recovery of losses due to the impacts of an agricultural 6
	111	+	disaster in 2024. The Department shall develop guidelines and procedures to ensure that funds 7
	112	+	are expended for the purposes allowed by this section and may require any documentation it 8
	113	+	determines necessary to verify the appropriate use of financial assistance awards, including 9
	114	+	receipts. All distributed funds are subject to federal and State income tax. 10
	115	+	SECTION 3.1.(f) Refund of Award. – If a person receives financial assistance under 11
	116	+	this Program for which the person is ineligible, or if the amount of the financial assistance 12
	117	+	received is based on inaccurate information, the person forfeits the assistance awarded under this 13
	118	+	section and is liable for the amounts received. Assistance forfeited under this section shall bear 14
	119	+	interest at the rate determined in accordance with G.S. 105-241.21 as of the date of receipt until 15
	120	+	repaid. Financial assistance forfeited but not paid shall be collected by a civil action in the name 16
	121	+	of the State, and the recipient shall pay the cost of the action. The Attorney General, at the request 17
	122	+	of the Commissioner of Agriculture, shall institute the action in the proper court for the collection 18
	123	+	of the award forfeited, including interest thereon. 19
	124	+	SECTION 3.1.(g) Definitions. – For purposes of this section, the following 20
	125	+	definitions apply: 21
	126	+	(1) Agricultural disaster. – A secretarial disaster designation declared by the 22
	127	+	United States Department of Agriculture Secretary for qualifying counties in 23
	128	+	this State. 24
	129	+	(2) Corn. – A cereal plant of the grass family (Zea mays) and an edible grain. 25
	130	+	(3) Department. – The Department of Agriculture and Consumer Services. 26
	131	+	(4) Person. – Any individual, trust, estate, partnership, receiver, association, 27
	132	+	company, limited liability company, corporation, or other entity or group. 28
	133	+	(5) Program. – The 2024 Agricultural Disaster Corn Crop Loss Program. 29
	134	+	SECTION 3.1.(h) Program Reporting Requirement. – The Department shall submit 30
	135	+	a report to the Fiscal Research Division no later than the first day of the month six months after 31
	136	+	this section becomes effective, and every six months thereafter until all funds are expended or 32
	137	+	the Program expires, containing, at a minimum, all of the following data: 33
	138	+	(1) The number of applicants and the county in which the person incurred the 34
	139	+	verified loss. 35
	140	+	(2) The number and amount of grants awarded. 36
	141	+	(3) The geographic distribution of the grants awarded. 37
	142	+	(4) The total amount of funding available to the Program, the total amount 38
	143	+	encumbered, and the total amount disbursed to date. 39
	144	+	(5) Any refunds made to the Program pursuant to subsection (f) of this section. 40
	145	+	SECTION 3.1.(i) Expiration and Reversion. – The Program shall expire 30 months 41
	146	+	after this section becomes effective. Any funds allocated to the Program not expended or 42
	147	+	encumbered by that date shall revert to the State Emergency Response and Disaster Relief Fund. 43
	148	+	44
	149	+	PART IV. EFFECTIVE DATE 45
	150	+	SECTION 4.1. This act is effective when it becomes law. 46